FEDERAL EMPLOYEES' GROUP LIFE INSURANCE ACT OF 1980

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP84B00890R000300030045-5
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 10
• Document Creation Date: December 15, 2016
• Document Release Date: November 5, 2003
• Sequence Number: 45
• Publication Date: January 5, 1981
• Content Type: MF

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OLC 81-0003
5 January 1981
STAT FROM :
I
SUBJECT: Federal Employees' Group Life
Insurance Act of 1980
P.L. 96-427 is attached for your information.
Sly
Attachment
Distr
STAT 1 -
1 -
1
1 -
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1 - OLC Chrono
OLC:GMC:es (5 Jan 81)
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Chief, Legislation Division, OLC
 Approved $'ONL/ .50(MAI"8 B0089OR00f$ 04
Public Law 96-427
96th Congress
An Act
To amend chapter 87 of title 5, United States Code, to increase the amounts of Oct. 10, 1980
regular and optional group life insurance available to Federal employees and [H.R. 7666]
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provide optional life insurance on family members, an
Be it enacted by the Senate and House of Representatives of the
United States ofAmerica in Congress assembled,
SHORT TITLE
SECTION 1. This Act may be cited as the "Federal Employees' Group
Life Insurance Act of 1980".
REGULAR GROUP INSURANCE PAYMENTS
SEC. 2. (a) Section 8701 of title 5, United States Code, is amended-
(1) in the section heading, by striking out "Definition" and
inserting in lieu thereof "Definitions"; and
(2) by inserting at the end thereof the following new subsection:
"(c) For the purpose of this chapter, `basic insurance amount'
means, in the case of any employee under this chapter, an amount
equal to the greater of-
"(1) the annual rate of basic pay payable to the employee,
rounded to the next higher multiple of $1,000, plus $2,000, or
"(2) $10,000,
except that the amount of insurance may not exceed the annual rate
of basic pad pa able for positions at level II of the Executive Schedule
under section 5313 of this title, rounded to the next higher multiple of
$1,000, plus $2,000. In the case of any former employee entitled to
coverage under this chapter, the term means the basic insurance
amount applicable for the employee at the time the insurance to
which the employee is entitled as an employee under this chapter
stopps ursuant to section 8706(a) of this title.".
(b) Section 8704(a) of title 5 is amended to read as follows:
"(a) An employee eligible for insurance is entitled to be insured for
an amount of group life insurance equal to-
"(1) the employee's basic insurance amount multiplied by
"(2) the appropriate factor determined on thie basis of the
employee's age in accordance with the following schedule:
"If the age of the The appropriate
employee is: factor is:
35 or under ............................................................................................. 2.0
36 .............................................................................................................1.9
37 .............................................................................................................1.8
88 .............................................................................................................1.7
39 .............................................................................................................1.6
40 .............................................................................................................1.5
41 .............................................................................................................1.4
42 .............................................................................................................1.8
48 .............................................................................................................1.2
44 .............................................................................................................1.1
45 or over ...............................................................................................1.0.".
Federal
Employees'
Group Insurance
Act of 1980.
"Basic insurance
amount."
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5 USC 5545.
5 USC 8331.
Effective date.
5 USC 8704
note.
(c) Section 8704(b) of title 5 is amended-
(1) by inserting before "Subject to" the following new sentence:
"An employee eligible for insurance is entitled to be insured for
group accidental death and dismemberment insurance in accord-
ance with this subsection.";
(2) in the table, by striking out "shown in the schedule in
subsection (a) of this section" each place it appears and inserting
in lieu thereof "of the employee's basic insurance amount"; and
(3) in the last sentence, by striking out "the amount shown in
the schedule in subsection (a) of this section" and inserting in
lieu thereof "an amount equal to the employee's basic insurance
amount.".
(d) Section 8704(c) of title 5 is amended by striking out the last
sentence and inserting in lieu thereof the following: "For the purpose
of this chapter, `annual pay' includes-
"(1) premium pay under section 5545(c)(1) of this title; and
"(2) with respect to a law enforcement officer as defined in
section 8331(20) of this title, premium pay under section
5545(cX2) of this title.".
(e) The item relating to section 8701 in the table of sections for
chapter 87 of title 5 is amended by striking out "Definition" and
inserting in lieu thereof "Definitions '.
(f) Subsections (b) and (c) of this section shall take effect be inning
with the first pay period beginning on or after October 1, 1981.
CONTINUATION OF REGULAR GROUP LIFE INSURANCE
SEC. 3. (a) Section 8706(b) of title 5, United States Code, is amended
to read as follows:
"(bXl) In the case of any employee who retires on an immediate
annuity and has been insured under this chapter throughout-
`(A) the 5 years of service immediately preceding the date of
the employee s retirement, or
"(B) the full period or periods of service during which the
employee was entitled to be insured, if fewer than 5 years,
life insurance, without accidental death and dismemberment insur-
ance, may be continued, under conditions determined by the Office.
"(2) In the case of any employee who becomes entitled to receive
compensation under subchapter I of chapter 81 of this title because of
disease or injury to the employee and has been insured under this
chapter throughout-
"(A) the 5 years of service immediately preceding the date the
employee becomes entitled to compensation, or
"(13) the full period or periods of service during which the
employee was entitled to be insured, if fewer than 5 years,
life insurance, without accidental death and dismemberment insur-
ance, may be continued, under conditions determined by the Office,
during the period the employee is receiving compensation and is held
by the Secretary of Labor or the Secretary's delegate to be unable to
return to duty.
"(3) The amount of life insurance continued under paragraph (1) or
(2) of this subsection shall be continued, with or without reduction, 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, in accordance with the employee's written election
at the time eligibility to continue insurance during retirement or
receipt of compensation arises, as follows:
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"(A) the employee may elect to have the deductions required by
section 8707 of this title withheld from annuity or compensation, 5 Usc 8707.
and the employee's life insurance shall be reduced each month by
2 percent of the face value until 25 percent of the amount of life
insurance in force before the first reduction remains; or
"(B) in addition to any deductions which would be required if
the insurance were continued as provided under subparagraph
(A) of this paragraph, the employee may elect continuous with-
holdings from annuity or compensation in amounts determined
by the Office, and the employee's life insurance coverage shall be
either continued without reduction or reduced each month by no
more than 1 percent of its face value until no less than 50 percent
of the amount of insurance in force before the first reduction
remains.
"(4) If an employee elects to continue insurance under subpara-
graph (B) of paragraph (3) of this subsection at the time eligibility to
continue insurance during retirement or receipt of compensation for
disease or injury arises, the individual may later cancel that election
and life insurance coverage shall continue as if the individual had
originally elected coverage under subparagraph (A) of paragraph (3)
of this subsection.".
EMPLOYEE DEDUCTIONS; WITHHOLDING
SEC. 4. (a) Section 8707 of title 5, United States Code, is amended to
read as follows:
"?8707. Employee deductions; withholding 5 UsC 8707.
"(a) During each period 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 5 USC 8709.
pay a share of the cost of the group life insurance and accidental
death and dismemberment insurance.
"(b)(1) Whenever life insurance continues after an employee retires
on an immediate annuity or while the employee is receiving compen-
sation under subchapter I of chapter 81 of this title because of disease, 5 Usc 8101.
or injury to the employee, as provided in section 8706(b) of this title,
deductions for insurance shall be withheld from the employee's
annuity or compensation, except that, in any case in which the 5 USC 8706.
insurance is continued as provided in section 8706(b)(3XA) of this title,
the deductions shall not be made for months after the calendar
month in which the employee becomes 65 years of age.
"(2) Notwithstanding paragraph (1) of this subsection, 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 before December 31, 1989.
"(c) The amount withheld from the pay, annuity, or compensation
of each employee subject to insurance deductions shall be at the rate,
adjusted to the nearest half-cent, of 66% percent of the level cost as
determined by the Office for each $1,000 of the employee's basic
insurance amount.
"(d) If an agency fails to withhold the proper amount of life Waiver.
insurance deductions from an individual'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
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the uncollected deductions and related agency contributions required
under section 8708 of this title to the Office for deposit to the
Employees' Life Insurance Fund.".
SEC. 5. (a) Section 8709 of title 5, United States Code, is amended by
inserting at the end thereof the following new subsection:
"(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 extent
that the law or regulation is inconsistent with the contractual
provisions.
"State." "(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.".
SEC. 6. (a) Section 8714a(c)(2)(C) of title 5, United States Code, is
amended to read as follows:
"(C) The amount of optional life insurance continued under subpar-
agraph (A) or subparagraph (B) of this paragraph shall be reduced by
2 percent 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 mini-
mum amounts, not less than 25 percent of the amount of life
insurance in force before the first reduction, to which the insurance
may be reduced.".
(b) Section 8714a(d) of title 5 is amended by inserting "(1)" after
"(d)" and by adding at the end thereof the following new paragraph:
Waiver. "(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 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 Employees' Life Insurance
Fund.".
SEC. 7. (a) Chapter 87 of title 5, United States Code, is further
amended by inserting after section 8714a the following new section:
5 USC 8714b. "? 8714b. Additional optional life insurance
"(a) Under the conditions, directives, and terms specified in sec-
5 USC tions 8709 through 8712 of this title, the Office of Personnel Manage-
8709-8712. ment, without regard to section 5 of title 41, may purchase a policy
which shall make available to each employee insured under section
5 USC 8702. 8702 of this title amounts of additional optional life insurance
(without accidental death and dismemberment insurance). An
employee may elect coverage under this section without regard to
whether the employee has elected coverage under optional insurance
5 USC 8714a. available under section 8714a of this title.
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"(b) 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 pre-
scribe, 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) except that coverage may not exceed
an amount equal to 5 times the annual rate of basic pay payable for
positions at level II of the Executive Schedule under section 5313 of
this title (rounded to the next higher multiple of $1,000). An employee 5 USC 5313.
may reduce or stop coverage elected pursuant to this section at any
time.
"(c)(1) The additional optional insurance elected by an employee
pursuant to this section shall stop on separation 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
temporary extension of insurance coverage and for conversion to an
individual policy, as provided in sections 8706(a) and 8706(c) of this
title. 5 Usc 8706
"(2) In the case of any employee who retires on an immediate
annuity or who becomes entitled to receive compensation under 5 USC 8101.
subchapter I of chapter 81 of this title because of disease or injury 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 preceding the date of
retirement or entitlement to compensation, or
"(B) the full period or periods of service during 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 employee is receiving compensation under
subchapter 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. The
amount of insurance continued under this paragraph 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. The reduction
shall continue for 50 months at which time the insurance stops.
"(d)(1) During each period in which the additional optional insur-
ance is in force on an employee the full cost thereof shall be withheld
from the employee's pay. During each period in which an employee
continues additional optional insurance after retirement or while in
receipt of compensation under subchapter I of chapter 81 of this title
because of disease or injury to the emplo ee, as provided in subsection
(c) of this section, the full cost thereoshall be withheld from the
former employee's annuity or compensation, except that, beginning
at the end of the calendar month in which the former employee
becomes 65 years of age, the additional optional life insurance shall
be without cost to the former employee. Amounts so withheld shall be
deposited, used, and invested as provided in section 8714 of this title 5 USC 8714.
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 waiver.
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 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
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uncollected amount to the Office for deposit to the Employees' Life
Insurance Fund.
"(e) The cost of the additional optional insurance shall be deter-
mined from time to time by the Office on the basis of the employee's
age relative to such age groups as the Office establishes under section
5 Usc 8714a. 8714a(e) of this title.
"(f) The amount of additional optional life insurance in force on an
employee at the date of his death shall be paid as provided in section
5 USC 8705. 8705 of this title.".
(b) The table of sections for chapter 87 of title 5, United States Code,
is amended by inserting after the item relating to section 8714a the
following new item:
"8714b. Additional optional life insurance.".
SEC. 8. (a) Chapter 87 of title 5, United States Code, is further
amended by inserting after section 8714b (as added by section 7 of this
Act) the following new section:
5 USC 8714c. "? 8714c. Optional life insurance on family members
"(a) Under the conditions, directives, and terms specified in sec-
5 USC tions 8709 through 8712 of this title, the Office of Personnel Manage-
8709-8712. ment, without regard to section 5 of title 41, may purchase a policy
which shall make available to each employee insured under section
5 USC 8702. 8702 of this title amounts of optional life insurance (without acciden-
tal death and dismemberment insurance) on the employee's family
members.
"(b) The optional life insurance on family members provided under
this section shall be made available to each eligible employee who
elects coverage under this section, under conditions the Office shall
prescribe, in the amount of $5,000 for a spouse and $2,500 for each
5 USC 8701. child described in section 8701(d). The employee may stop coverage
elected under this section at any time.
"(c)(1) Optional life insurance on family members shall stop at the
earlier of the employee's death, the employee's separation from the
service, 12 months after discontinuance of pay, or the employee's
entry on active duty or active duty for training, as provided in
5 USC 8706. sections 8706(a) and 8706(c) of this title, subject to provision for a 31-
day temporary extension of insurance coverage and for conversion to
individual policies 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
5 USC 8101. subchapter I of chapter 81 of this title because of disease or injury to
the employee and who has had in force insurance under this section
for no less than-
"(A) the 5 years of service immediately preceding the date of
retirement or entitlement to compensation, or
"(B) the full period or periods of service during which the
insurance was available to the employee, if fewer than 5 years,
optional life insurance on family members may be continued under
Ante, p. 1834. the same conditions as provided in section 8714b(cX2) of this title.
"(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 employee's pay. During each period in which an employee
continues optional life insurance on family members after retirement
or while in receipt of compensation under subchapter I of chapter 81
of this title because of disease or injury to the employee, as provided
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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 members shall be without
cost to the 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 members from an individual's salary, compensa-
tion, 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 Employees' Life
Insurance Fund.
"(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
employee'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.".
(b) Section 8701 of title 5 is further amended by inserting at the end
thereof the following new subsection:
"(d)(1) For the purpose of this chapter, `family member', when used
with respect to any individual, means-
"(A) the spouse of the individual; and
"(B) an unmarried dependent child of the individual (other
than a stillborn child), including an adopted child, stepchild (but
only if the stepchild lived with the individual in a regular parent-
child relationship), or recognized natural child-
"(0 who is less than 22 years of age, or
"(ii) who is 22 years of age or older and is incapable of self-
support because of a mental or physical disability which
existed before the child became 22 years of age.
"(2) For the purpose of this subsection, 'dependent', in the case of
any child, means that the individual involved was, at the time of the
child's death, either living with or contributing to the support of the
child, as determined in accordance with the regulations the Office
shall prescribe.".
(c) The table of sections for chapter 87 of such title 5 is amended by
inserting after the item relating to section 8714b (as added by section
7 of this Act) the following new item:
"8714c. Optional life insurance on family members.".
SEC. 9. (a) Section 8713 of title 5, United States Code, is repealed.
(b) The table of sections for chapter 87 of title 5 is amended by
striking out the item relating to section 8713.
5 USC 8714a.
Waiver.
"Family
member."
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5 USC 8714a
note.
SEC. 10. (a) Unless otherwise specified, this Act shall take effect on
the date of the enactment of this Act and shall have no effect in the
case of an employee who died, was separated, or retired before the
date of enactment.
(b) The amendment made by subsection (d) of section 2 of this Act
shall apply with respect to premium pay payable under section
5545(c)(2) of title 5, United States Code, from and after the first day of
the first pay period which begins on or after the date of the
enactment of this Act.
(c) The amendments made by section 3 of this Act shall apply only
in the case of an employee who retires or becomes entitled to receive
compensation for work injury on or after the 180th day following the
date of the enactment of this Act, or any earlier date that the Office of
Personnel Management may prescribe which is at least 60 days after
the date of enactment.
(d) The amendments made by sections 7 and 8 of this Act shall take
effect on the first day of the first pay period which begins on or after
the 180th day following the date of the enactment of this Act, or on
any earlier date that the Office may prescribe which is at least 60
days after the date of enactment, and shall have no effect in the case
of an employee who died, was finally separated, or retired before the
effective date.
AVAILABILITY OF'CERTAIN FUNDS IN EMPLOYEES' LIFE INSURANCE FUND
SEC. 11. Amounts credited to the Employees' Life Insurance Fund
under section 8714a(d) of title 5, United States Code, shall be
available for expenses incurred by the Office of Personnel Manage-
ment in implementing the amenents made by sections 7 and 8 of
this Act.
Approved October 10, 1980.
LEGISLATIVE HISTORY:
HOUSE REPORT No. 96-1280 (Post Office and Civil Service).
CONGRESSIONAL RECORD, Vol. 126 (1980):
Sept. 8, considered and passed House.
Sept. 29, considered and passed Senate.
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