5 U.S.C. § 8714a — Optional insurance

Page 1226 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714a HISTORICAL AND REVISION NOTES Derivation U.S. Code Revised Statutes and Statutes at Large .................. 5 U.S.C. 2094(c) (less applicability to 5 U.S.C. 2099), (d). Aug. 17, 1954, ch. 752, § 5(c) (less applicability to § 10), 68 Stat. 739. Aug. 11, 1955, ch. 794, § 1(a) ‘‘(c) (less applicability to § 10)’’, (b), 69 Stat. 676. Apr. 11, 1958, Pub. L. 85–377, § 1 (less applicability to § 10), 72 Stat. 87. In subsection (a), the words ‘‘of the Employees’ Life Insurance Fund’’ are substituted for ‘‘of a fund which is hereby created’’. The proviso which made appropria- tions available to the Commission for salaries and ex- penses for the fiscal year 1955 available on a reimburs- able basis for necessary administrative expenses for carrying out the purposes of this chapter is omitted as executed. 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 1980—Subsec. (c). Pub. L. 96–499 added subsec. (c). 1978—Subsec. (a)(2). Pub. L. 95–454 substituted ‘‘Office of Personnel Management’’ for ‘‘Civil Service Commis- sion’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1980 AMENDMENT Pub. L. 96–499, title IV, § 405(b), Dec. 5, 1980, 94 Stat. 2607, provided that: ‘‘The amendment made by sub- section (a) [amending this section] shall take effect on the date of the enactment of this Act [Dec. 5, 1980], and shall apply with respect to premiums paid on or after such date.’’ 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. FUNDING Pub. L. 103–409, § 4, Oct. 25, 1994, 108 Stat. 4232, pro- vided that: ‘‘Notwithstanding section 8714(a)(1) of title 5, United States Code, the Office of Personnel Manage- ment shall retain in the Employees’ Life Insurance Fund such portion of premium payments otherwise due as will, no later than September 30, 1995, permanently reduce the contingency reserve established under the third sentence of section 8712 of such title 5 by an amount equal to the amount by which payments from the Employees’ Life Insurance Fund during the fiscal year ending September 30, 1995, exceed the payments that would have been paid had the amendments made by this Act [enacting section 8714d of this title] not been enacted.’’ § 8714a. Optional insurance (a) Under the conditions, directives, and terms specified in sections 8709–8712 of this title, the Office of Personnel Management, without regard to section 6101(b) to (d) of title 41, may purchase a policy which shall make available to each in- sured employee equal amounts of optional life insurance and accidental death and dismember- ment insurance in addition to the amounts pro- vided in section 8704(a) 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 optional life insurance and accidental death and dismemberment insurance shall be made available to each insured employee under such conditions as the Office shall prescribe and in amounts approved by the Office but not more than the greater of $10,000 or an amount which, when added to the amount provided in section 8704(a) of this title, makes the sum of his insur- ance equal to his annual pay. (c)(1) Except as otherwise provided in this sub- section, the optional insurance on an employee stops on his separation from service or 12 months after discontinuance of his pay, which- ever is earlier, subject to a provision for tem- porary extension of life insurance coverage and for conversion to an individual policy of life in- surance under conditions approved by the Office. (2)(A) In the case of any employee who retires on an immediate annuity and has been insured under this section throughout— (i) the 5 years of service immediately pre- ceding the date of such retirement, or (ii) the full period or periods of service dur- ing which the employee was entitled to be in- sured, if less than 5 years, the amount of optional life insurance only which has been in force throughout such period may be continued, under conditions determined by the Office. (B) In the case of any employee who becomes entitled to receive compensation under sub- chapter I of chapter 81 of this title because of disease or injury to the employee and has been insured under this section throughout— (i) the 5 years of service immediately pre- ceding the date such employee becomes enti- tled to such compensation, or (ii) the full period or periods of service dur- ing which the employee was entitled to be in- sured, if less than 5 years, the amount of optional life insurance only which has been in force throughout such period may be continued, under conditions determined by the Office, during the period the employee is receiving such compensation for disease or in- jury and is held by the Secretary of Labor or his delegate to be unable to return to duty. (C) The amount of optional life insurance con- tinued under subparagraph (A) or subparagraph (B) of this paragraph shall be reduced by 2 per- cent at the end of each full calendar month after the date the employee becomes 65 years of age and is retired or is receiving compensation for disease or injury. The Office shall prescribe min- imum amounts, not less than 25 percent of the amount of life insurance in force before the first reduction, to which the insurance may be re- duced. Page 1227 TITLE 5—GOVERNMENT ORGANIZATION AND EMPLOYEES § 8714a 1 So in original. Probably should be ‘‘paragraph (1) of this sub- section,’’. (3) Notwithstanding paragraph (c)(1) of this section,1 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 require- ments of section 371(a) of title 28, United States Code, for continuation of the judicial salary shall have the right to convert regular optional life insurance coverage issued under this section during his judicial service to an individual pol- icy of life insurance under the same conditions approved by the Office governing conversion of basic life insurance coverage for employees eli- gible as provided in section 8706(a) of this title. (d)(1) During each period in which an employee has the optional insurance the full cost thereof shall be withheld from his pay. During each pe- riod in which an employee continues optional life insurance after retirement or while in re- ceipt of compensation for work injuries, as pro- vided in section 8706(b) of this title, the full cost thereof shall be withheld from his annuity or compensation, except that, at the end of the cal- endar month in which he becomes 65 years of age, the optional life insurance shall be without cost to him. Amounts so withheld shall be de- posited, used, and invested as provided in sec- tion 8714 of this title and shall be reported and accounted for separately from amounts withheld and contributed under sections 8707 and 8708 of this title. (2) If an agency fails to withhold the proper cost of optional insurance 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 individual is without fault and re- covery would be against equity and good con- science. 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 op- tional insurance if the employee arranges to pay currently into the Employees’ Life Insurance Fund, through the agency or retirement system which administers pay, annuity, or compensa- tion, an amount equal to the withholdings that would otherwise be required under this sub- section. (e) The cost of the optional insurance shall be determined from time to time by the Office on the basis of such age groups as it considers ap- propriate. (f) The amount of optional life, or life and ac- cidental death, insurance in force on an em- ployee at the date of his death shall be paid as provided in section 8705 of this title. (Added Pub. L. 90–206, title IV, § 404(1), Dec. 16, 1967, 81 Stat. 647; amended Pub. L. 95–454, title IX, § 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95–583, § 1(c), Nov. 2, 1978, 92 Stat. 2481; Pub. L. 96–427, § 6, Oct. 10, 1980, 94 Stat. 1834; Pub. L. 98–353, title II, § 206, 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)(3), June 6, 1986, 100 Stat. 597; Pub. L. 99–336, § 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105–311, § 6(2), Oct. 30, 1998, 112 Stat. 2951; Pub. L. 110–417, [div. A], title XI, § 1103(b), Oct. 14, 2008, 122 Stat. 4616; Pub. L. 111–350, § 5(a)(12), 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. (d)(3). Pub. L. 105–311 added par. (3). 1986—Subsec. (c)(1). Pub. L. 99–336 amended Pub. L. 98–353, § 206, generally. See 1984 Amendment note below. Pub. L. 99–335 amended par. (1) generally, effective Jan. 1, 1987. Prior to such effective date, par. (1) read as follows: ‘‘The optional insurance on an employee stops on his separation from service, 12 months after dis- continuance of his pay, or on his entry on active duty or active duty for training, as provided in sections 8706(a) and 8706(c) of this title. Justices 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.’’ 1984—Subsec. (c)(1). Pub. L. 98–353, § 206, as amended generally by Pub. L. 99–336, 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. Subsec. (c)(3). Pub. L. 98–353, § 206, added par. (3). 1980—Subsec. (c)(2)(C). Pub. L. 96–427, § 6(a), sub- stituted provisions that the amount of optional life in- surance shall be reduced by 2% at the end of each cal- endar month after the date the employee becomes 65 years of age and is retired or is receiving compensation for disease or injury and that the Office shall prescribe minimum amount of life insurance in force before the first reduction to which the insurance may be reduced for provisions that such optional insurance be subject to the same monthly reductions as required for regular life insurance under section 8706(b)(3) of this title. Subsec. (d). Pub. L. 96–427, § 6(b), designated existing provisions as par. (1) and added par. (2). 1978—Subsecs. (a), (b). Pub. L. 95–454 substituted ‘‘Of- fice of Personnel Management’’ for ‘‘Civil Service Com- mission’’ and ‘‘Office’’ for ‘‘Commission’’ wherever ap- pearing. Subsec. (c)(1). Pub. L. 95–583, § 1(c)(1), substituted ref- erence to section ‘‘8706(c)’’ for ‘‘8706(d)’’. Subsec. (c)(2). Pub. L. 95–583, § 1(c)(2), added par. (2) and struck out former par. (2) which read as follows: ‘‘So much of the optional life insurance in force on an employee on the date he retires on an immediate annu- ity or becomes entitled to receive compensation for work injuries which has been in force for not less than— ‘‘(A) the full period or periods of service during which the optional insurance was available to him; or ‘‘(B) the 12 years of service immediately preceding his retirement or beginning date of entitlement to compensation for work injuries and during which the optional insurance was available to him; whichever is shorter, may be continued— ‘‘(A) after retirement, under the same conditions (except with respect to cost but including reduction of the amount continued) as provided in section 8706(b) of this title; or ‘‘(B) while in receipt of compensation for work inju- ries under the same conditions (except with respect to cost) as provided in section 8706(c) of this title.’’ Pub. L. 95–454, which substituted ‘‘Office’’ for ‘‘Com- mission’’, was executed to text of subsec. (c)(2) as amended by Pub. L. 95–583. See Effective Date of 1978 Amendments note below. 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