-CITE-

5 USC CHAPTER 87 - LIFE INSURANCE 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

.

-HEAD-

CHAPTER 87 - LIFE INSURANCE

-MISC1-

Sec.

8701. Definitions.

8702. Automatic coverage.

8703. Benefit certificate.

8704. Group insurance; amounts.

8705. Death claims; order of precedence; escheat.

8706. Termination of insurance; assignment of ownership.

8707. Employee deductions; withholding.

8708. Government contributions.

8709. Insurance policies.

8710. Reinsurance.

8711. Basic tables of premium rates.

8712. Annual accounting; special contingency reserve.

8713. Effect of other statutes.

8714. Employees' Life Insurance Fund.

8714a. Optional insurance.

8714b. Additional optional life insurance.

8714c. Optional life insurance on family members.

8714d. Option to receive ''living benefits''.

8715. Jurisdiction of courts.

8716. Regulations.

AMENDMENTS

1994 - Pub. L. 103-409, Sec. 2(b), Oct. 25, 1994, 108 Stat. 4232,

added item 8714d.

1988 - Pub. L. 100-238, title I, Sec. 108(a)(2)(B), Jan. 8, 1988,

101 Stat. 1747, added item 8713.

1984 - Pub. L. 98-353, title II, Sec. 208(b), July 10, 1984, 98

Stat. 351, inserted ''; assignment of ownership'' in item 8706.

1980 - Pub. L. 96-427, Sec. 2(e), 7(b), 8(c), and 9(b), Oct. 10,

1980, 94 Stat. 1832, 1836, 1837, added items 8714b and 8714c,

substituted ''Definitions'' for ''Definition'' in item 8701, and

struck out item 8713 ''Advisory committee''.

1967 - Pub. L. 90-206, title IV, Sec. 404(2), Dec. 16, 1967, 81

Stat. 648, added item 8714a.

Pub. L. 90-83, Sec. 1(94), Sept. 11, 1967, 81 Stat. 219,

substituted ''Advisory committee'' for ''Advisors'' in item 8713.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in sections 1103, 3373, 3374, 3582,

5304, 5362, 5948 of this title; title 2 sections 31b-5, 60c-5, 72a,

92, 130a, 162b, 2064; title 20 section 125; title 22 sections 2025,

2391, 3649, 3658, 3664, 4606, 7002; title 25 section 450i; title 28

sections 179, 332, 627, 634, 996; title 38 sections 7438, 7453,

7458; title 39 section 1005; title 42 sections 2996d, 4276, 10704;

title 45 section 1206; title 49 section 40122.

-CITE-

5 USC Sec. 8701 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8701. Definitions

-STATUTE-

(a) For the purpose of this chapter, ''employee'' means -

(1) an employee as defined by section 2105 of this title;

(2) a Member of Congress as defined by section 2106 of this

title;

(3) a Congressional employee as defined by section 2107 of this

title;

(4) the President;

(5) a justice or judge of the United States appointed to hold

office during good behavior (i) who is in regular active judicial

service, or (ii) who is retired from regular active service under

section 371(b) or 372(a) of title 28, United States Code, or

(iii) who has resigned the judicial office under section 371(a)

of title 28 with the continued right during the remainder of his

lifetime to receive the salary of the office at the time of his

resignation;

(6) an individual first employed by the government of the

District of Columbia before October 1, 1987;

(7) an individual employed by Gallaudet College; (FOOTNOTE 1)

(FOOTNOTE 1) See Change of Name note below.

(8) an individual employed by a county committee established

under section 590h(b) of title 16;

(9) an individual appointed to a position on the office staff

of a former President under section 1(b) of the Act of August 25,

1958 (72 Stat. 838); and

(10) an individual appointed to a position on the office staff

of a former President, or a former Vice President under section 4

of the Presidential Transition Act of 1963, as amended (78 Stat.

153), who immediately before the date of such appointment was an

employee as defined under any other paragraph of this subsection;

but does not include -

(A) an employee of a corporation supervised by the Farm Credit

Administration if private interests elect or appoint a member of

the board of directors;

(B) an individual who is not a citizen or national of the

United States and whose permanent duty station is outside the

United States, unless the individual was an employee for the

purpose of this chapter on September 30, 1979, by reason of

service in an Executive agency, the United States Postal Service,

or the Smithsonian Institution in the area which was then known

as the Canal Zone; or

(C) an employee excluded by regulation of the Office of

Personnel Management under section 8716(b) of this title.

(b) Notwithstanding subsection (a) of this section, the

employment of a teacher in the recess period between two school

years in a position other than a teaching position in which he

served immediately before the recess period does not qualify the

individual as an employee for the purpose of this chapter. For the

purpose of this subsection, ''teacher'' and ''teaching position''

have the meanings given them by section 901 of title 20.

(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.

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 stops pursuant to

section 8706(a) of this title.

(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 or

foster child (but only if the stepchild or foster child lived

with the individual in a regular parent-child relationship), or

recognized natural child -

(i) 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.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 592; Pub. L. 91-418, Sec.

3(a), Sept. 25, 1970, 84 Stat. 869; Pub. L. 93-160, Sec. 1(a), Nov.

27, 1973, 87 Stat. 635; Pub. L. 95-454, title IX, Sec. 906(a)(2),

Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-54, Sec. 2(a)(51), Aug.

14, 1979, 93 Stat. 384; Pub. L. 96-70, title I, Sec. 1209(b), Sept.

27, 1979, 93 Stat. 463; Pub. L. 96-427, Sec. 2(a), 8(b), Oct. 10,

1980, 94 Stat. 1831, 1837; Pub. L. 98-353, title II, Sec. 205, July

10, 1984, 98 Stat. 350; Pub. L. 99-335, title II, Sec. 207(k)(1),

June 6, 1986, 100 Stat. 597; Pub. L. 100-679, Sec. 13(b), Nov. 17,

1988, 102 Stat. 4071; Pub. L. 105-311, Sec. 3(1), 4, Oct. 30, 1998,

112 Stat. 2950.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

(a) 2 U.S.C. 126. Sept. 1, 1954, ch.

1208, Sec. 603, 68

Stat. 1116.

5 U.S.C. 2091(a) Aug. 17, 1954, ch.

(1st sentence, less 752, Sec. 2(a) (1st

words between 6th sentence, less

and 7th commas), words between 6th

(b), (d) (1st and 7th commas),

sentence, less (b), 68 Stat. 736.

words between 1st Aug. 1, 1956, ch.

and 2d commas). 837, Sec. 501(c)(1)

(as applicable to

Sec. 2 (b)), 70

Stat. 882. Aug. 2,

1956, ch. 901, Sec.

1, 70 Stat. 955.

July 1, 1960, Pub.

L. 86-568, Sec.

115(c) ''(d) (1st

sentence, less

words between 1st

and 2d commas)''.

74 Stat. 302.

Aug. 31, 1964, Pub.

L. 88-531 Sec. 2,

78 Stat. 737.

(Uncodified). Aug. 25, 1958, Pub.

L. 85-745, Sec.

1(b) (last

sentence, as

applicable to the

Federal Employees'

Group Life

Insurance Act of

1954), 72 Stat.

838.

(b) 5 U.S.C. 2358(c) July 17, 1959, Pub.

(less applicability L. 86-91, Sec.

to the Civil 10(c) (less

Service Retirement applicability to

Act). the Civil Service

Retirement Act), 73

Stat. 217.

-------------------------------

The definition of ''Congressional employee'' in section 2107 of

this title includes an Official Reporter of Debates of the Senate

and an individual employed by an Official Reporter of Debates of

the Senate so that the inclusion of ''a Congressional employee'' in

subsection (a)(3) provides the coverage for those individuals which

was given by former section 126 of title 2.

The definition of ''employee'' in section 2105 of this title is

broad enough to cover the officers and employees set out in former

section 2091(a) with the exception of Members of Congress, the

President, individuals employed either by the government of the

District of Columbia or by Gallaudet College, and United States

commissioners. Accordingly, these have been added specifically in

paragraphs (2), (4), (5), (6), and (7).

In subsection (a) (B), the words ''United States'' are

substituted for ''a State of the United States or the District of

Columbia''.

Subsection (a)(C) is added for clarity.

In subsection (b), the last sentence is added on authority of

former section 2351, which section is scheduled for transfer to

section 901 of title 20.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

-REFTEXT-

REFERENCES IN TEXT

Act of August 25, 1958 (72 Stat. 838), referred to in subsec.

(a)(9), is Pub. L. 85-745 and is set out as a note under section

102 of Title 3, The President.

Section 4 of the Presidential Transition Act of 1963, referred to

in subsec. (a)(10), is section 4 of Pub. L. 88-277, which is set

out as a note under section 102 of Title 3.

-MISC2-

AMENDMENTS

1998 - Subsec. (c). Pub. L. 105-311, Sec. 3(1), substituted a

period for comma after ''$10,000'' in par. (2) and struck out

''except that the amount of insurance may not exceed 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, plus $2,000.'' before last

sentence.

Subsec. (d)(1)(B). Pub. L. 105-311, Sec. 4, inserted ''or foster

child'' after ''stepchild'' in two places in introductory

provisions.

1988 - Subsec. (a)(10). Pub. L. 100-679 added par. (10).

1986 - Subsec. (a)(6). Pub. L. 99-335 amended par. (6) generally,

substituting ''first employed'' for ''employed'' and inserting

''before October 1, 1987''.

1984 - Subsec. (a)(5) to (9). Pub. L. 98-353 added par. (5) and

redesignated former pars. (5) to (8) as (6) to (9), respectively.

1980 - Pub. L. 96-427, Sec. 2(a)(1), substituted ''Definitions''

for ''Definition'' in section catchline.

Subsec. (c). Pub. L. 96-427, Sec. 2(a)(2), added subsec. (c).

Subsec. (d). Pub. L. 96-427, Sec. 8(b), added subsec. (d).

1979 - Subsec. (a)(7) to (9). Pub. L. 96-54 struck out cl. (7)

which related to coverage within term ''employee'' of a United

States Commissioner, and redesignated cls. (8) and (9) as (7) and

(8), respectively.

Subsec. (a)(B). Pub. L. 96-70 inserted provisions relating to an

individual who was an employee for the purpose of this chapter on

Sept. 30, 1979, by reason of service in an Executive agency, the

United States Postal Service, or the Smithsonian Institution in the

area which was then known as the Canal Zone.

1978 - Subsec. (a)(C). Pub. L. 95-454 substituted ''Office of

Personnel Management'' for ''Civil Service Commission''.

1973 - Subsec. (a)(B). Pub. L. 93-160 excluded from definition of

''employee'' persons who are not nationals of the United States and

whose permanent duty station is outside the United States and the

Panama Canal Zone.

1970 - Subsec. (a)(B). Pub. L. 91-418 excluded from definition of

''employee'' a noncitizen employee whose permanent duty station is

outside the Panama Canal Zone.

-CHANGE-

CHANGE OF NAME

Gallaudet College, referred to in subsec. (a)(7), redesignated

Gallaudet University by section 101(a) of Pub. L. 99-371, which is

classified to section 4301(a) of Title 20, Education.

-MISC4-

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-311, Sec. 11, Oct. 30, 1998, 112 Stat. 2954, provided

that:

''(a) In General. - Except as otherwise provided in this Act (see

Short Title of 1998 Amendment note below), the amendments made by

this Act shall take effect on the date of enactment of this Act

(Oct. 30, 1998).

''(b) Maximum Limitation on Employee Insurance. - Section 3

(amending this section and section 8714b of this title) shall take

effect on the first day of the first applicable pay period

beginning on or after the date of enactment of this Act.

''(c) Erroneous Coverage. - Section 5 (amending section 8706 of

this title) shall be effective in any case in which a finding of

erroneous insurance coverage is made on or after the date of

enactment of this Act.

''(d) Direct Payment of Insurance Contributions. - Section 6

(amending sections 8707 and 8714a to 8714c of this title) shall

take effect on the first day of the first applicable pay period

beginning on or after the date of enactment of this Act.

''(e) Additional Optional Life Insurance. -

''(1) In general. - Section 7 (amending section 8714b of this

title and enacting provisions set out as a note under section

8714b of this title) shall take effect on the first day of the

first pay period that begins on or after the 180th day following

the date of enactment of this Act, or on any earlier date that

the Office of Personnel Management may prescribe that is at least

60 days after the date of enactment of this Act.

''(2) Regulations. - The Office shall prescribe regulations

under which an employee may elect to continue additional optional

insurance that remains in force on such effective date without

subsequent reduction and with the full cost withheld from annuity

or compensation on and after such effective date if that employee

-

''(A) separated from service before such effective date due

to retirement or entitlement to compensation under subchapter I

of chapter 81 of title 5, United States Code; and

''(B) continued additional optional insurance pursuant to

section 8714b(c)(2) as in effect immediately before such

effective date.

''(f) Improved Optional Life Insurance on Family Members. - The

amendments made by section 8 (amending section 8714c of this title)

shall take effect on the first day of the first pay period which

begins on or after the 180th day following the date of enactment of

this Act or on any earlier date that the Office of Personnel

Management may prescribe.

''(g) Open Season. - Any election made by an employee under

section 9 (set out as a note below), and applicable withholdings,

shall be effective on the first day of the first applicable pay

period that -

''(1) begins on or after the date occurring 365 days after the

first day of the election period authorized under section 9; and

''(2) follows a pay period in which the employee was in a pay

and duty status.''

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 Effective Date note under

section 8401 of this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 10 of Pub. L. 96-427 provided that:

''(a) Unless otherwise specified, this Act (see Short Title note

below) shall take effect on the date of the enactment of this Act

(Oct. 10, 1980) 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 (amending section 8704 of this title) 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

(Oct. 10, 1980).

''(c) The amendment made by section 3 of this Act (amending

section 8706 of this title) shall apply only in the case of an

employee who retires or become entitled to receive compensation for

work injury on or after the 180th day following the date of the

enactment of this Act (Oct. 10, 1980), 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

(enacting sections 8714b and 8714c of this title and amending this

section) 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 (Oct. 10, 1980), 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.''

EFFECTIVE DATE OF 1979 AMENDMENTS

Amendment by Pub. L. 96-70 effective Oct. 1, 1979, see section

3304 of Pub. L. 96-70, set out as an Effective Date note under

section 3601 of Title 22, Foreign Relations and Intercourse.

Amendment by Pub. L. 96-54 effective July 12, 1979, see section

2(b) of Pub. L. 96-54, set out as a note under section 305 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.

SHORT TITLE OF 1998 AMENDMENT

Pub. L. 105-311, Sec. 1, Oct. 30, 1998, 112 Stat. 2950, provided

that: ''This Act (amending this section and sections 7703, 8706,

8707, and 8714a to 8714c of this title and enacting provisions set

out as notes under this section and sections 7703 and 8714b of this

title) may be cited as the 'Federal Employees Life Insurance

Improvement Act'.''

SHORT TITLE OF 1994 AMENDMENT

Pub. L. 103-409, Sec. 1, Oct. 25, 1994, 108 Stat. 4230, provided

that: ''This Act (enacting section 8714d of this title and

provisions set out as notes under this section and sections 8704,

8714, and 8901 of this title) may be cited as the 'FEGLI Living

Benefits Act'.''

SHORT TITLE OF 1980 AMENDMENT

Section 1 of Pub. L. 96-427 provided that: ''This Act (enacting

sections 8714b and 8714c of this title, amending this section and

sections 8704, 8706, 8707, 8709, and 8714a of this title, repealing

section 8713 of this title and enacting provisions set out as notes

under this section and sections 8704 and 8714a of this title) may

be cited as the 'Federal Employees' Group Life Insurance Act of

1980'.''

OPEN SEASON

Pub. L. 105-311, Sec. 9, Oct. 30, 1998, 112 Stat. 2954, provided

that: ''Beginning not later than 180 days after the date of

enactment of this Act (Oct. 30, 1998), the Office of Personnel

Management shall conduct an open enrollment opportunity for

purposes of chapter 87 of title 5, United States Code, over a

period of not less than 8 weeks. During this period, an employee

(as defined under section 8701(a) of such title) -

''(1) may, if the employee previously declined or voluntarily

terminated any coverage under chapter 87 of such title, elect to

begin, resume, or increase group life insurance (and acquire

applicable accidental death and dismemberment insurance) under

all sections of such chapter without submitting evidence of

insurability; and

''(2) may, if currently insured for optional life insurance on

family members, elect an amount above the minimum insurance on a

spouse.''

Pub. L. 103-409, Sec. 3(b), Oct. 25, 1994, 108 Stat. 4232,

provided that:

''(1) The Office of Personnel Management shall prescribe

regulations under which, beginning not later than 9 months after

the date of the enactment of this Act (Oct. 25, 1994), and over a

period of not less than 8 weeks -

''(A) an employee (as defined by section 8701(a) of title 5,

United States Code) who declined or voluntarily terminated

coverage under chapter 87 of such title -

''(i) may elect to begin, or to resume, group life insurance

and group accidental death and dismemberment insurance; and

''(ii) may make such other elections under such chapter as

the Office may allow; and

''(B) such other elections as the Office allows may be made.

''(2) The Office shall take such action as may be necessary to

ensure that employees and any other individuals who would be

eligible to make an election under this subsection are afforded

advance notification to that effect.''

CONTINUED COVERAGE UNDER CERTAIN FEDERAL EMPLOYEE BENEFIT PROGRAMS

FOR CERTAIN EMPLOYEES OF SAINT ELIZABETHS HOSPITAL

For provisions relating to treatment of certain Federal employees

of Saint Elizabeths Hospital under certain Federal employee benefit

programs, see section 207(o) of Pub. L. 99-335, set out as a note

under section 8331 of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8706, 8714a, 8714b,

8714c, 8716 of this title; title 2 sections 162b, 2064; title 28

section 179.

-CITE-

5 USC Sec. 8702 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8702. Automatic coverage

-STATUTE-

(a) An employee is automatically insured on the date he becomes

eligible for insurance and each policy of insurance purchased by

the Office of Personnel Management under this chapter shall provide

for that automatic coverage.

(b) An employee desiring not to be insured shall give written

notice to his employing office on a form prescribed by the Office.

If the notice is received before he has become insured, he shall

not be insured. If the notice is received after he has become

insured, his insurance stops at the end of the pay period in which

the notice is received.

(c) Notwithstanding a notice previously given under subsection

(b), an employee of the Department of Defense who is designated as

an emergency essential employee under section 1580 of title 10

shall be insured if the employee, within 60 days after the date of

the designation, elects to be insured under a policy of insurance

under this chapter. An election under the preceding sentence shall

be effective when provided to the Office in writing, in the form

prescribed by the Office, within such 60-day period.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 593; Pub. L. 95-454, title

IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L.

106-398, Sec. 1 ((div. A), title XI, Sec. 1134(a)), Oct. 30, 2000,

114 Stat. 1654, 1654A-318.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2094(a) Aug. 17, 1954, ch.

(less 1st par.). 752, Sec. 5(a)

(less 1st par.), 68

Stat. 738.

-------------------------------

In subsection (a), the words ''eligible for insurance'' are

coextensive with and substituted for ''eligible under the terms of

this chapter''.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

2000 - Subsec. (c). Pub. L. 106-398 added subsec. (c).

1978 - Subsecs. (a), (b). Pub. L. 95-454 substituted ''Office of

Personnel Management'' for ''Civil Service Commission'' and

''Office'' for ''Commission''.

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.

APPLICABILITY

Pub. L. 106-398, Sec. 1 ((div. A), title XI, Sec. 1134(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-318, provided that: ''For purposes

of section 8702(c) of title 5, United States Code (as added by

subsection (a)), an employee of the Department of Defense who is

designated as an emergency essential employee under section 1580 of

title 10, United States Code, before the date of the enactment of

this Act (Oct. 30, 2000) shall be deemed to be so designated on the

date of the enactment of this Act.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714b, 8714c of this

title.

-CITE-

5 USC Sec. 8703 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8703. Benefit certificate

-STATUTE-

The Office of Personnel Management shall arrange to have each

insured employee receive a certificate setting forth the benefits

to which he is entitled, to whom the benefits are payable, to whom

the claims shall be submitted, and summarizing the provisions of

the policy principally affecting him. The certificate is issued

instead of the certificate which the insurance company would

otherwise be required to issue.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 593; Pub. L. 95-454, title

IX, Sec. 906(a)(2), Oct. 13, 1978, 92 Stat. 1224.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2098. Aug. 17, 1954, ch.

752, Sec. 9, 68

Stat. 742.

-------------------------------

The words ''each insured employee'' are coextensive with and

substituted for ''each employee insured under such policy''.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1978 - Pub. L. 95-454 substituted ''Office of Personnel

Management'' for ''Civil Service Commission''.

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.

-CITE-

5 USC Sec. 8704 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8704. Group insurance; amounts

-STATUTE-

(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 the basis of the

employee's age in accordance with the following schedule:

---------------------------------------------------------------------

If the age of the employee is The appropriate factor is:

---------------------------------------------------------------------

35 or under 2.0

36 1.9

37 1.8

38 1.7

39 1.6

40 1.5

41 1.4

42 1.3

43 1.2

44 1.1

45 or over 1.0.

-------------------------------

(b) An employee eligible for insurance is entitled to be insured

for group accidental death and dismemberment insurance in

accordance with this subsection. Subject to the conditions and

limitations approved by the Office of Personnel Management which

are contained in the policy purchased by the Office, the group

accidental death and dismemberment insurance provides payment as

follows:

---------------------------------------------------------------------

Loss Amount payable

---------------------------------------------------------------------

For loss of life Full amount of the employee's

basic insurance amount.

Loss of one hand or of one foot One-half the amount of the

or loss of sight of one eye employee's basic insurance

amount.

Loss of two or more such members Full amount of the employee's

basic insurance amount.

-------------------------------

For any one accident the aggregate amount of group accidental death

and dismemberment insurance that may be paid may not exceed an

amount equal to the employee's basic insurance amount.

(c) The Office shall prescribe regulations providing for the

conversion of other than annual rates of pay to annual rates of pay

and shall specify the types of pay included in annual pay. 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) or 8401(17) of this title, premium pay under

section 5545(c)(2) of this title.

(d) In determining the amount of insurance to which an employee

is entitled -

(1) a change in rate of pay under subchapter VI of chapter 53

of this title is deemed effective as of the first day of the pay

period after the pay period in which the payroll change is

approved; and

(2) a change in rate of pay under section 5344 or 5349 of this

title is deemed effective as of the date of issuance of the order

granting the increase or the effective date of the increase,

whichever is later, except, that in the case of an employee who

dies or retires during the period beginning on the effective date

of the increase and ending on the date of the issuance of the

order granting the increase, a change in rate of pay under either

of such sections shall be deemed as having been in effect for

such employee during that period.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 593; Pub. L. 89-737, Sec.

1(3), Nov. 2, 1966, 80 Stat. 1164; Pub. L. 90-206, title IV, Sec.

401, Dec. 16, 1967, 81 Stat. 646; Pub. L. 92-392, Sec. 11, Aug. 19,

1972, 86 Stat. 575; Pub. L. 95-454, title VIII, Sec. 801(a)(3)(E),

title IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1222, 1224;

Pub. L. 96-427, Sec. 2(b)-(d), Oct. 10, 1980, 94 Stat. 1831, 1832;

Pub. L. 100-238, title I, Sec. 103(b), Jan. 8, 1988, 101 Stat.

1744.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

(a)-(c) 5 U.S.C. 2092 (less Aug. 17, 1954, ch.

(d)) 752, Sec. 3 (less

(d)), 68 Stat. 737.

(d)(1) (Uncodified). Aug. 23, 1958, Pub.

L. 85-737, Sec. 3,

72 Stat. 831.

(d)(2) 5 U.S.C. 1183. Sept. 2, 1958, Pub.

L. 85-872, Sec. 3,

72 Stat. 1697.

-------------------------------

In subsection (a), the words ''An employee eligible for insurance

is entitled'' are coextensive with and substituted for ''Each

employee to whom this chapter applies shall be eligible''.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1988 - Subsec. (c)(2). Pub. L. 100-238 inserted ''or 8401(17)''

after ''8331(20)''.

1980 - Subsec. (a). Pub. L. 96-427, Sec. 2(b), substituted new

formula for group life insurance to be computed by multiplying the

basic insurance with a factor to be obtained from the table based

on age for provisions calling for group life insurance and an equal

amount of death and dismemberment insurance in accordance with a

schedule based on the basic pay with special provision for

extension by the amount of increase in the annual rates of basic

pay for positions at level II of the Executive Schedule under

section 5313 of this title. Prior to this amendment, the table was

as follows:

---------------------------------------------------------------------

If annual pay is -

----------------

Greater than - :But not greater:The amount of :The amount of

: than - : group life : group

: : insurance is -: accidental

: : : death and

: : : dismemberment

: : : insurance is -

: : :

---------------------------------------------------------------------

0 :$8,000 :$10,000 :$10,000

$8,000 :9,000 :11,000 :11,000

9,000 :10,000 :12,000 :12,000

10,000 :11,000 :13,000 :13,000

11,000 :12,000 :14,000 :14,000

12,000 :13,000 :15,000 :15,000

13,000 :14,000 :16,000 :16,000

14,000 :15,000 :17,000 :17,000

15,000 :16,000 :18,000 :18,000

16,000 :17,000 :19,000 :19,000

17,000 :18,000 :20,000 :20,000

18,000 :19,000 :21,000 :21,000

19,000 :20,000 :22,000 :22,000

20,000 :21,000 :23,000 :23,000

21,000 :22,000 :24,000 :24,000

22,000 :23,000 :25,000 :25,000

23,000 :24,000 :26,000 :26,000

24,000 :25,000 :27,000 :27,000

25,000 :26,000 :28,000 :28,000

26,000 :27,000 :29,000 :29,000

27,000 :28,000 :30,000 :30,000

28,000 :29,000 :31,000 :31,000

29,000 : :32,000 :32,000

-------------------------------

Subsec. (b). Pub. L. 96-427, Sec. 2(c), inserted provision that

an employee eligible for insurance is entitled to be insured for

group accidental death and dismemberment insurance in accordance

with this subsection and substituted reference to employee's basic

insurance amount for reference to the amount shown in the schedule

in subsec. (a) of this section in four places.

Subsec. (c). Pub. L. 96-427, Sec. 2(d), expanded definition of

''annual pay'' to include premium pay under section 5545(c)(2) of

this title with respect to a law enforcement officer as defined in

section 8331(20) of this title.

1978 - Subsecs. (b), (c). Pub. L. 95-454, Sec. 906(a)(2), (3),

substituted ''Office of Personnel Management'' and ''Office'' for

''Civil Service Commission'' and ''Commission'', respectively,

wherever appearing.

Subsec. (d)(1). Pub. L. 95-454, Sec. 801(a)(3)(E), substituted

''subchapter VI of chapter 53'' for ''section 5337''.

1972 - Subsec. (d)(2). Pub. L. 92-392 substituted ''section 5344

or 5349 of this title'' for ''section 5343 of this title'' and

added the exception.

1967 - Subsec. (a). Pub. L. 90-206, in material preceding the

table, struck out reference to an approximate relationship between

the amount of group life insurance and the eligible employee's

annual pay and inserted reference to an automatic extension of the

schedule correspondingly by the amounts of increases in the annual

rate of basic pay for positions at level II of the Executive

Schedule under section 5313 of this title, and raised the insurance

coverages for both life and accidental death and dismemberment.

1966 - Subsec. (c). Pub. L. 89-737 inserted provision that, for

the purpose of this chapter, ''annual pay'' includes premium pay

under section 5545(c)(1) of this title.

EFFECTIVE DATE OF 1988 AMENDMENT

Amendment by Pub. L. 100-238 effective Jan. 1, 1987, see section

103(f) of Pub. L. 100-238 set out as a note under section 3307 of

this title.

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by section 2(d) of Pub. L. 96-427 applicable with

respect to premium pay payable under section 5545(c)(2) of this

title from and after the first day of the first pay period which

begins on or after Oct. 10, 1980, see section 10(b) of Pub. L.

96-427, set out as a note under section 8701 of this title.

Section 2(f) of Pub. L. 96-427 provided that: ''Subsections (b)

and (c) of this section (amending this section) shall take effect

beginning with the first pay period beginning on or after October

1, 1981.''

EFFECTIVE DATE OF 1978 AMENDMENT

Amendment by section 801(a)(3)(E) of Pub. L. 95-454 effective on

first day of first applicable pay period beginning on or after 90th

day after Oct. 13, 1978, see section 801(a)(4) of Pub. L. 95-454,

set out as an Effective Date note under section 5361 of this title.

Amendment by section 906(a)(2), (3) of 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 1972 AMENDMENT

Amendment by Pub. L. 92-392 effective on first day of first

applicable pay period beginning on or after 90th day after Aug. 19,

1972, see section 15(a) of Pub. L. 92-392, set out as an Effective

Date note under section 5341 of this title.

EFFECTIVE DATE OF 1967 AMENDMENT

Section 405(a) of Pub. L. 90-206 provided that: ''The amendments

made by sections 401 to 403, inclusive, of this Act (amending this

section and sections 8707 and 8708 of this title) shall take effect

on the first day of the first pay period which begins on or after

the sixtieth day following the date of enactment (Dec. 16, 1967).

In the case of an employee who dies or retires during the period

beginning on the date of enactment of this Act and prior to the

effective date prescribed by this subsection, the amount of

insurance shall be determined as if the amendments made by section

401 (amending this section) were in effect for such employee during

such period.''

EFFECTIVE DATE OF 1966 AMENDMENT

Amendment by Pub. L. 89-737 applicable with respect to premium

pay payable from and after first day of first pay period which

begins after date of enactment of Pub. L. 89-737, which was

approved Nov. 2, 1966, see section 4 of Pub. L. 89-737, set out in

the note under section 8114 of this title.

RETROACTIVE EFFECT OF 1967 AMENDMENT

Section 405(c) of Pub. L. 90-206 provided that: ''The amendments

made by sections 401 to 404, inclusive, of this Act (enacting

section 8714a of this title and amending this section and sections

8707 and 8708 of this title) shall have no effect in the case of an

employee who died, was finally separated, or retired prior to the

date of enactment (Dec. 16, 1967).''

1967 ADJUSTMENT IN AMOUNT OF INSURANCE

Section 220(b) of Pub. L. 90-206 provided that: ''For the

purposes of determining the amount of insurance for which an

individual is eligible chapter 87 of title 5, United States Code,

relating to group life insurance for Federal employees -

''(1) all changes in rates of pay which result from the

enactment of this title (see Short Title Note under section 5332

of this title) except Postal Field Service Schedule II, Rural

Carrier Schedule II, and sections 207, 212, 213(d) and (e), 215,

219, and 225) shall be held and considered to become effective as

of the date of such enactment (Dec. 16, 1967); and

''(2) all changes in rates of pay which result from the

enactment of section 212 of this title (enacting provisions set

out as a note under section 5303 of this title) and which take

effect retroactively from the date on which the adjustments

thereof are actually ordered under such section, shall be held

and considered to become effective on the date on which such

adjustments are actually ordered.''

(Section 220(b) of Pub. L. 90-206 effective Dec. 16, 1967, see

section 220(a) (1) of Pub. L. 90-206, set out as an Effective Date

note under section 3110 of this title.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 5545a, 5545b, 8714a,

8714d of this title.

-CITE-

5 USC Sec. 8705 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8705. Death claims; order of precedence; escheat

-STATUTE-

(a) Except as provided in subsection (e), the amount of group

life insurance and group accidental death insurance in force on an

employee at the date of his death shall be paid, on the

establishment of a valid claim, to the person or persons surviving

at the date of his death, in the following order of precedence:

First, to the beneficiary or beneficiaries designated by the

employee in a signed and witnessed writing received before death

in the employing office or, if insured because of receipt of

annuity or of benefits under subchapter I of chapter 81 of this

title as provided by section 8706(b) of this title, in the Office

of Personnel Management. For this purpose, a designation, change,

or cancellation of beneficiary in a will or other document not so

executed and filed has no force or effect.

Second, if there is no designated beneficiary, to the widow or

widower of the employee.

Third, if none of the above, to the child or children of the

employee and descendants of deceased children by representation.

Fourth, if none of the above, to the parents of the employee or

the survivor of them.

Fifth, if none of the above, to the duly appointed executor or

administrator of the estate of the employee.

Sixth, if none of the above, to other next of kin of the

employee entitled under the laws of the domicile of the employee

at the date of his death.

(b) If, within 1 year after the death of the employee, no claim

for payment has been filed by a person entitled under the order of

precedence named by subsection (a) of this section, or if payment

to the person within that period is prohibited by Federal statute

or regulation, payment may be made in the order of precedence as if

the person had predeceased the employee, and the payment bars

recovery by any other person.

(c) If, within 2 years after the death of the employee, no claim

for payment has been filed by a person entitled under the order of

precedence named by subsection (a) of this section, and neither the

Office nor the administrative office established by the company

concerned pursuant to section 8709(b) of this title has received

notice that such a claim will be made, payment may be made to the

claimant who in the judgment of the Office is equitably entitled

thereto, and the payment bars recovery by any other person.

(d) If, within 4 years after the death of the employee, payment

has not been made under this section and no claim for payment by a

person entitled under this section is pending, the amount payable

escheats to the credit of the Employees' Life Insurance Fund.

(e)(1) Any amount which would otherwise be paid to a person

determined under the order of precedence named by subsection (a)

shall be paid (in whole or in part) by the Office to another person

if and to the extent expressly provided for in the terms of any

court decree of divorce, annulment, or legal separation, or the

terms of any court order or court-approved property settlement

agreement incident to any court decree of divorce, annulment, or

legal separation.

(2) For purposes of this subsection, a decree, order, or

agreement referred to in paragraph (1) shall not be effective

unless it is received, before the date of the covered employee's

death, by the employing agency or, if the employee has separated

from service, by the Office.

(3) A designation under this subsection with respect to any

person may not be changed except -

(A) with the written consent of such person, if received as

described in paragraph (2); or

(B) by modification of the decree, order, or agreement, as the

case may be, if received as described in paragraph (2).

(4) The Office shall prescribe any regulations necessary to carry

out this subsection, including regulations for the application of

this subsection in the event that two or more decrees, orders, or

agreements, are received with respect to the same amount.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 594; Pub. L. 90-83, Sec.

1(91), Sept. 11, 1967, 81 Stat. 219; Pub. L. 95-454, title IX, Sec.

906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95-583, Sec.

1(b), Nov. 2, 1978, 92 Stat. 2481; Pub. L. 105-205, Sec. 1, July

22, 1998, 112 Stat. 683.)

-MISC1-

Historical and Revision Notes

1966 Act

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2093. Aug. 17, 1954, ch.

752, Sec. 4, 68

Stat. 738. Aug. 28,

1962, Pub. L. 87-

611, Sec. 1, 76

Stat. 406.

-------------------------------

In subsection (c), the words ''Employees' Life Insurance Fund''

are substituted for ''fund created pursuant to section 2094(c) of

this title''.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

1967 Act

---------------------------------------------------------------------

Section of title 5 Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

8705(a) 5 App.: 2093. Mar. 23, 1966, Pub.

L. 89-373, Sec. 1,

80 Stat. 78.

-------------------------------

In subsection (a), ''Civil Service Commission'' is substituted

for ''Commission'' on authority of former 5 U.S.C. 2091(a).

In subsection (c), ''Commission'' is substituted for ''Civil

Service Commission'' for consistency of style. The full title of

the Commission is set forth the first time it is used in a section.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-205, Sec. 1(1), substituted

''Except as provided in subsection (e), the'' for ''The''.

Subsec. (e). Pub. L. 105-205, Sec. 1(2), added subsec. (e).

1978 - Subsec. (a). Pub. L. 95-583 struck out ''or (c)'' after

''section 8706(b)''.

Pub. L. 95-454 substituted ''Office of Personnel Management'' for

''Civil Service Commission''.

Subsec. (c). Pub. L. 95-454 substituted ''Office'' for

''Commission'' wherever appearing.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714a, 8714b, 8714c of

this title.

-CITE-

5 USC Sec. 8706 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8706. Termination of insurance; assignment of ownership

-STATUTE-

(a) A policy purchased under this chapter shall contain a

provision, approved by the Office of Personnel Management, to the

effect that insurance of an employee stops on his separation from

the 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. 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.

(b)(1) 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

insurance, 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

(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

insurance, 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:

(A) the employee may elect to have the deductions required by

section 8707 of this title withheld from annuity or compensation,

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 withholdings

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

subparagraph (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.

(c) Notwithstanding subsections (a) and (b) of this section, an

employee who enters on approved leave without pay to serve as a

full-time officer or employee of an organization composed primarily

of employees as defined by section 8701(a) of this title, within 60

days after entering on that leave without pay, may elect to

continue his insurance and arrange to pay currently into the

Employees' Life Insurance Fund, through his employing agency, both

employee and agency contributions from the beginning of leave

without pay. The employing agency shall forward the premium

payments to the Fund. If the employee does not so elect, his

insurance will continue during nonpay status and stop as provided

by subsection (a) of this section.

(d) If the insurance of an employee stops because of separation

from the service or suspension without pay, and the separation or

suspension is thereafter officially found to have been erroneous,

the employee is deemed to have been insured during the period of

erroneous separation or suspension. Deductions otherwise required

by section 8707 of this chapter shall not be withheld from any

backpay awarded for the period of separation or suspension unless

death or accidental dismemberment of the employee occurs during

such period.

(e)(1) Under regulations prescribed by the Office, each policy

purchased under this chapter shall provide that an insured employee

or former employee may make an irrevocable assignment of the

employee's or former employee's incidents of ownership in the

policy.

(2) A court decree of divorce, annulment, or legal separation, or

the terms of a court-approved property settlement agreement

incident to any court decree of divorce, annulment, or legal

separation, may direct that an insured employee or former employee

make an irrevocable assignment of the employee's or former

employee's incidents of ownership in insurance under this chapter

(if there is no previous assignment) to the person specified in the

court order or court-approved property settlement agreement.

(f) If the insurance of a former employee receiving a disability

annuity under section 8337 of this title stops because of the

termination of such annuity, and such annuity is thereafter

restored under the second or third sentence of subsection (e) of

such section, such former employee may, under regulations

prescribed by the Office, elect to resume the insurance coverage

which was so stopped.

(g) The insurance of an employee under a policy purchased under

section 8709 shall not be invalidated based on a finding that the

employee erroneously became insured, or erroneously continued

insurance upon retirement or entitlement to compensation under

subchapter I of chapter 81 of this title, if such finding occurs

after the erroneous insurance and applicable withholdings have been

in force for 2 years during the employee's lifetime.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 595; Pub. L. 90-83, Sec.

1(92), Sept. 11, 1967, 81 Stat. 219; Pub. L. 92-529, Oct. 21, 1972,

86 Stat. 1050; Pub. L. 95-454, title IX, Sec. 906(a)(2), (3), Oct.

13, 1978, 92 Stat. 1224; Pub. L. 95-583, Sec. 1(a), Nov. 2, 1978,

92 Stat. 2481; Pub. L. 96-427, Sec. 3(a), Oct. 10, 1980, 94 Stat.

1832; Pub. L. 98-353, title II, Sec. 206, 208, July 10, 1984, 98

Stat. 351, as amended by Pub. L. 99-336, Sec. 7(1), June 19, 1986,

100 Stat. 639; Pub. L. 99-53, Sec. 3(b), June 17, 1985, 99 Stat.

95; Pub. L. 99-335, title II, Sec. 207(k)(2), June 6, 1986, 100

Stat. 597; Pub. L. 99-336, Sec. 7(1), June 19, 1986, 100 Stat. 639;

Pub. L. 102-378, Sec. 2(74), Oct. 2, 1992, 106 Stat. 1355; Pub. L.

103-336, Sec. 4, Oct. 3, 1994, 108 Stat. 2662; Pub. L. 105-205,

Sec. 2, July 22, 1998, 112 Stat. 683; Pub. L. 105-311, Sec. 5, Oct.

30, 1998, 112 Stat. 2951.)

-MISC1-

Historical and Revision Notes

1966 Act

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

(a)-(c) 5 U.S.C. 2095. Aug. 17, 1954, ch.

752, Sec. 6, 68

Stat. 739. Aug. 11,

1955, ch. 794, Sec.

2(a), 69 Stat. 677.

May 28, 1956, ch.

328, Sec. 1, 70

Stat. 213.

Sept. 23, 1959, Pub.

L. 86-377, Sec.

4(c), 73 Stat. 701.

(d) 5 U.S.C. 2091(c). Aug. 1, 1956, ch.

837, Sec. 501(c)(1)

(less applicability

to Sec. 2(b)), 70

Stat. 882.

-------------------------------

In subsection (b), the words ''armed forces'' are coextensive

with and substituted for ''Army, Navy, Air Force, and Marine Corps,

or Coast Guard of the United States'' in view of the definition of

''armed forces'' in section 2101.

In subsection (c), the word ''only'' is supplied for clarity and

for consistency with subsection (b). The words ''under conditions

determined by the Commission, without cost to him'' are coextensive

with and substituted for ''as provided in subsection (b) of this

section''.

In subsection (d), the first sentence of former section 2091(c)

is omitted as unnecessary as the definition of ''employee'' in

section 8701 precludes acquisition of coverage by a member of a

uniformed service. The words ''section 101 of title 38'' are

substituted for ''section 1101 of title 38'' on authority of

section 5(a) of the Act of Sept. 2, 1958, Pub. L. 85-857, 72 Stat.

1262.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

1967 Act

---------------------------------------------------------------------

Section of title 5 Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

8706(e) 5 App.: 2095(d). July 18, 1966, Pub.

L. 89-504, Sec.

406(a), 80 Stat.

298.

-------------------------------

The words ''subsections (a)-(c) of this section'' are substituted

for ''the foregoing'' to reflect the codification of former 5

U.S.C. 2095. The word ''officer'' is omitted as included in

''employee.'' The words ''as defined by section 8701(a) of this

title'' are substituted for ''as defined in section 2 of the Act''

to reflect the codification of that section in 5 U.S.C. 8701(a).

The words ''Employees' Life Insurance Fund'' and ''Fund'' are

substituted for ''fund'' and ''fund established by section 5 of

this Act'', respectively.

AMENDMENTS

1998 - Subsec. (e). Pub. L. 105-205 designated existing

provisions as par. (1) and added par. (2).

Subsec. (g). Pub. L. 105-311 added subsec. (g).

1994 - Subsec. (e). Pub. L. 103-336 substituted ''employee or

former employee'' for ''Federal judge'', ''employee's or former

employee's'' for ''judge's'', and ''purchased'' for ''purchase''.

1992 - Subsecs. (f), (g). Pub. L. 102-378 redesignated subsec.

(g) as (f).

1986 - Subsec. (a). Pub. L. 98-353, Sec. 206, as amended

generally by Pub. L. 99-336, Sec. 7(1), inserted sentence which

deemed justices and judges described in section 8701(a)(5)(ii) and

(iii) of this chapter to continue in active employment for purposes

of this chapter.

Subsecs. (c) to (f). Pub. L. 99-335 struck out subsec. (c) and

redesignated subsecs. (d) to (f) as (c) to (e), respectively.

Former subsec. (c) provided that insurance granted an employee

stops, except for a 31-day extension of life insurance coverage, on

the day immediately before his entry on active duty or active duty

for training unless the period is covered by military leave with

pay but does not stop during a period of inactive duty training and

defined ''active duty'', ''active duty for training'', and

''inactive duty training'' as having the meanings given them by

section 101 of title 38.

1985 - Subsec. (g). Pub. L. 99-53 added subsec. (g).

1984 - Pub. L. 98-353, Sec. 208(b), inserted ''; assignment of

ownership'' in section catchline.

Subsec. (f). Pub. L. 98-353, Sec. 208(a), added subsec. (f).

1980 - Subsec. (b). Pub. L. 96-427 added subsec. (b) and struck

out former subsec. (b) which read as follows:

''(1) If on the date the insurance would otherwise stop the

employee retires on an immediate annuity and has been insured under

this chapter throughout -

''(A) the 5 years of service immediately preceding such date,

or

''(B) the full period or periods of service during which the

employee was entitled to be insured, if less than 5 years,

life insurance only may be continued, without cost to the employee,

under conditions determined by the Office.

''(2) If on the date the insurance would otherwise stop the

employee is receiving 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 such date,

or

''(B) the full period or periods of service during which the

employee was entitled to be insured, if less than 5 years,

life insurance only may be continued, without cost to the employee,

under conditions determined by the Office, during the period the

employee is receiving compensation for work injuries and is held by

the Secretary of Labor or his delegate to be unable to return to

duty.

''(3) The amount of life insurance continued under paragraph (1)

or paragraph (2) of this subsection 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 such

compensation for disease or injury. The Office shall prescribe

minimum 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.''

1978 - Subsec. (a). Pub. L. 95-454 substituted ''Office of

Personnel Management'' and ''Office'' for ''Civil Service

Commission'' and ''Commission'', respectively.

Subsec. (b). Pub. L. 95-583, Sec. 1(a)(1), added subsec. (b) and

struck out former subsec. (b) which read as follows: ''If on the

date the insurance would otherwise stop the employee retires on an

immediate annuity and -

''(1) his retirement is for disability; or

''(2) he has completed 12 years of creditable service as

determined by the Commission;

his life insurance only may be continued, without cost to him,

under conditions determined by the Commission. Periods of

honorable, active service in the armed forces shall be credited

toward the required 12 years if the employee has completed at least

5 years of civilian service. The amount of life insurance

continued under this subsection shall be reduced by 2 percent at

the end of each full calendar month after the date the employee

becomes 65 years of age or retires, whichever is later. The

Commission may prescribe minimum 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.''

Pub. L. 95-454, which substituted ''Office'' for ''Commission'',

was executed to text of subsec. (b) as amended by Pub. L. 95-583.

See Effective Date of 1978 Amendments note below.

Subsec. (c). Pub. L. 95-583, Sec. 1(a)(1), (2), struck out ''If

on the date the insurance would otherwise stop the employee is

receiving benefits under subchapter I of chapter 81 of this title

because of disease or injury to himself, his life insurance only

may be continued, without cost to him, under conditions determined

by the Commission while he is receiving the benefits and is held by

the Department of Labor to be unable to return to duty.'' and

redesignated subsec. (d) as (c).

Subsec. (d). Pub. L. 95-583, Sec. 1(a)(2), (3), redesignated

subsec. (e) as (d) and substituted reference to ''subsections (a)

and (b) of this section'' for ''subsections (a)-(c) of this

section''. Former subsec. (d) redesignated (c).

Subsecs. (e), (f). Pub. L. 95-583, Sec. 1(a)(2), redesignated

subsecs. (e) and (f) as (d) and (e), respectively.

1972 - Subsec. (f). Pub. L. 92-529 added subsec. (f).

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by Pub. L. 105-311 effective in any case in which a

finding of erroneous insurance coverage is made on or after Oct.

30, 1998, see section 11(c) of Pub. L. 105-311, set out as a note

under section 8701 of this title.

EFFECTIVE DATE OF 1986 AMENDMENTS

Section 207 of Pub. L. 98-353, as amended generally by Pub. L.

99-336, Sec. 7(2), provided that: ''The amendments to chapter 87 of

title 5, United States Code, made by section 206 of this Act

(which, as amended generally by Pub. L. 99-336, Sec. 7(1), amended

this section and sections 8714a to 8714c of this title) shall apply

in the case of any justice or judge who is retired under section

371(a) or 371(b) or 372(a) of title 28, United States Code. The

amendments apply to those who retire on or after January 1, 1982.''

Amendment by Pub. L. 99-335 effective Jan. 1, 1987, see section

702(a) of Pub. L. 99-335, set out as an Effective Date note under

section 8401 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Section 209 of Pub. L. 98-353 provided that:

''(a) Except as provided in subsection (b), the amendments made

by this Act to section 8706 of title 5, United States Code, shall

apply to policies purchased by judges after the date of enactment

of this Act (July 10, 1984).

''(b) If a company which issued a policy which is in effect on

the date of the enactment of this Act agrees, the amendments made

by this Act (probably should be 'made by this Act to section 8706

of title 5') shall apply to such policy.''

EFFECTIVE DATE OF 1980 AMENDMENT

Amendment by Pub. L. 96-427 applicable only in case of an

employee who retires or becomes entitled to receive compensation

for work injury on or after 180th day following Oct. 10, 1980, or

any earlier date that Office of Personnel Management may prescribe

which is at least 60 days after Oct. 10, 1980, see section 10(c) of

Pub. L. 96-427, set out as a note under section 8701 of this title.

EFFECTIVE DATE OF 1978 AMENDMENTS

Section 3 of Pub. L. 95-583 provided that: ''The amendments made

by this Act (amending this section and sections 8705, 8714a, and

8901 of this title) shall take effect on the date of the enactment

of this Act (Nov. 2, 1978).''

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.

INSURANCE COVERAGE FOR RESTORED DISABILITY ANNUITANTS

Section 3(c) of Pub. L. 99-53 provided that:

''(1) The amendments made by this section (amending this section

and section 8908 of this title) shall apply with respect to any

individual whose disability annuity is or was restored under

section 8337(e) of title 5, United States Code, after December 31,

1983.

''(2)(A) The Office of Personnel Management shall notify each

individual under subparagraph (B) of any rights which such

individual may have under section 8706(g) or section 8908(c) of

title 5, United States Code, as amended by this section, including

any procedures or deadlines which may apply with respect to the

exercise of those rights.

''(B) Notification under this paragraph shall be provided to any

individual who, as of the 90th day after the date of enactment of

this Act (June 17, 1985), is receiving a disability annuity which

was restored to such individual under section 8337(e) of title 5,

United States Code, after December 31, 1983.

''(3)(A) Nothing in this section shall be construed to authorize

-

''(i) coverage under chapter 87 of title 5, United States Code,

in the case of any individual who makes an election under section

8706(g) of such title (as amended by this Act), for any period

before the date of such election; or

''(ii) coverage under chapter 89 of title 5, United States

Code, in the case of any individual who becomes enrolled in a

health benefits plan under section 8908(c) of such title (as

amended by this Act), for any period before the date as of which

such individual becomes so enrolled.

''(B) This paragraph applies with respect to any individual

receiving a disability annuity which is or was restored under

section 8337(e) of title 5, United States Code, after December 31,

1983, and before the expiration of the 90-day period beginning on

the date of enactment of this Act (June 17, 1985).''

ELECTION OF LIFE INSURANCE OR HEALTH BENEFITS DURING PERIOD OF

SERVICE AS OFFICER OR EMPLOYEE OF AN EMPLOYEE ORGANIZATION;

CONTRIBUTIONS INTO EMPLOYEES LIFE INSURANCE FUND OR EMPLOYEES

HEALTH BENEFITS FUND, NON-ELECTION; REGULATIONS

Pub. L. 89-504, title IV, Sec. 406(c), July 18, 1966, 80 Stat.

298, provided that: ''An officer or employee who is on approved

leave without pay and serving as a full-time officer or employee of

an organization composed primarily of employees, as defined in

section 2 of the Federal Employees' Group Life Insurance Act of

1954, as amended (5 U.S.C. 2091) (section 8701 of this title) or

section 2 of the Federal Employees Health Benefits Act of 1959, as

amended (5 U.S.C. 3001) (section 8901 of this title) as the case

may be, may, within sixty days after the date of enactment of this

Act (July 18, 1966), file with his employing agency an election (1)

to continue any insurance status or health benefits enrollment, or

both, that he has on the date of enactment of this Act (July 18,

1966), (2) to reacquire any insurance status or health benefits

enrollment, or both, which he may have lost while on leave without

pay, or (3) to acquire as insured status or enroll in a health

benefits plan, or both, if he was never previously eligible to do

so, by arranging to pay currently and continuously into the

employees' life insurance fund and the employees' health benefits

fund, as appropriate, through his employing agency, both employee

and agency contributions. The employing agency shall forward such

payments to the employees' life insurance fund and the employees'

health benefits fund, as appropriate. If he does not so elect, his

insurance status and health benefits enrollment will continue and

terminate as for other employees in nonpay status, or he will

remain ineligible for insurance and health benefits, as the case

may be, as though this paragraph had not been enacted. The United

States Civil Service Commission is authorized to issue regulations

to carry out the purposes of this paragraph.''

(Provision effective July 18, 1966, see section 410(1) of Pub. L.

89-504.)

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8705, 8707, 8708, 8714a,

8714b, 8714d of this title.

-CITE-

5 USC Sec. 8707 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8707. Employee deductions; withholding

-STATUTE-

(a) Subject to subsection (c)(2), 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 pay a share of the cost of the

group life insurance and accidental death and dismemberment

insurance.

(b)(1) Subject to subsection (c)(2), whenever life insurance

continues after an employee retires on an immediate annuity or

while the employee is receiving compensation under subchapter 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 insurance shall be withheld from the employee's annuity 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

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)(1) 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 2/3 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 continue 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 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 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.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 595; Pub. L. 90-206, title

IV, Sec. 402, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95-454, title

IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L.

96-427, Sec. 4(a), Oct. 10, 1980, 94 Stat. 1833; Pub. L. 105-311,

Sec. 6(1), Oct. 30, 1998, 112 Stat. 2951.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2094(a) Aug. 17, 1954, ch.

(1st par.). 752, Sec. 5(a) (1st

par.), 68 Stat.

738. Sept. 23,

1959, Pub. L. 86-

377, Sec. 4(b), 73

Stat. 701.

-------------------------------

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1998 - Subsec. (a). Pub. L. 105-311, Sec. 6(1)(A), substituted

''Subject to subsection (c)(2), during'' for ''During''.

Subsec. (b)(1). Pub. L. 105-311, Sec. 6(1)(B), substituted

''Subject to subsection (c)(2), whenever'' for ''Whenever''.

Subsec. (c). Pub. L. 105-311, Sec. 6(1)(C), designated existing

provisions as par. (1) and added par. (2).

1980 - Subsec. (a). Pub. L. 96-427 designated first sentence of

existing section as subsec. (a) and substituted ''a policy

purchased'' for ''a policy of insurance purchased'' 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 Commission'' 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 substituted provisions setting a rate of 66 2/3

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 employees paid on other than a

biweekly basis at a proportional rate adjusted to the nearest cent.

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 employee 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8706, 8708, 8714, 8714a,

8714d of this title; title 2 sections 162b, 2064.

-CITE-

5 USC Sec. 8708 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8708. Government contributions

-STATUTE-

(a) For each period in which an employee is insured under a

policy of insurance purchased by the Office of Personnel Management

under section 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 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.

(c) When the employee is an elected official, the sum required by

subsection (a) of this section 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 subsection, for each

period in which an employee continues life 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

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 respect to individuals

who retire, or commence receiving compensation, after December

31, 1989;

(B) shall not be made with respect to any individual 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 section 8706(b)(3) of this title, be

equal to the amount which would apply under this subsection if

such individual had instead elected coverage under subparagraph

(A) of such section.

(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.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 595; Pub. L. 90-206, title

IV, Sec. 403, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95-454, title

IX, Sec. 906(a)(2), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 101-303,

Sec. 2, May 29, 1990, 104 Stat. 250; Pub. L. 104-186, title II,

Sec. 215(18), Aug. 20, 1996, 110 Stat. 1746.)

-MISC1-

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, Sec. 5(b), 68

Stat. 738.

(b) 2 U.S.C. 128. Aug. 5, 1955, ch.

568, Sec. 101 (4th

par. under

''Administrative

Provisions''), 69

Stat. 513.

-------------------------------

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

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 Commission''.

1967 - Subsec. (a). Pub. L. 90-206 substituted provisions 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

Commission not to exceed one-half of the amount withheld under

section 8707 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 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8707, 8714, 8714a, 8714d

of this title; title 2 sections 162b, 2064.

-CITE-

5 USC Sec. 8709 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8709. Insurance policies

-STATUTE-

(a) The Office of Personnel Management, without regard to section

5 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 requirements:

(1) It must be licensed to transact life and accidental death

and dismemberment insurance 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 available to the Office, an amount of

employee group life insurance equal to at least 1 percent of the

total amount of employee group life insurance in the United

States in all life insurance companies.

(b) A company issuing a policy under subsection (a) of this

section shall establish an administrative office under a name

approved by the Office.

(c) The Office at any time may discontinue a policy purchased

from a company under subsection (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 extent 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.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 596; Pub. L. 95-454, title

IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224; Pub. L.

96-427, Sec. 5(a), Oct. 10, 1980, 94 Stat. 1834.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2096 (less Aug. 17, 1954, ch.

(c)-(e)). 752, Sec. 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 definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

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'', respectively, wherever appearing.

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 employee 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8705, 8706, 8707, 8708,

8714a, 8714b, 8714c of this title.

-CITE-

5 USC Sec. 8710 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8710. Reinsurance

-STATUTE-

(a) The Office of Personnel Management shall arrange with a

company issuing a policy under this chapter for the reinsurance,

under conditions approved by the Office, of portions of the total

amount of insurance under the policy, determined under this

section, with other life insurance companies which elect to

participate in the reinsurance.

(b) The Office shall determine for and in advance of a policy

year which companies are eligible to participate as reinsurers and

the amount of insurance under a policy which is to be allocated to

the issuing company and to reinsurers. 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 reinsurer,

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 determining the proportions, the portion of a company's

group life insurance in force on the determination 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 Columbia; 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 entitled, as a minimum, to

be allocated an amount of insurance under the policy equal to any

reduction from December 31, 1953, to the determination date, in the

amount of the company's group life insurance under policies issued

to associations 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.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 596; Pub. L. 95-454, title

IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2096(c)- Aug. 17, 1954, ch.

(e). 752, Sec. 7(c)-(e),

68 Stat. 739. Aug.

11, 1955, ch. 794,

Sec. 3, 69 Stat.

677.

-------------------------------

The section is reorganized to clarify the steps in the

computation of the insurance allocable to issuing and reinsuring

companies.

In subsections (c) and (d), references to the first determination

date, December 31, 1953, are omitted as executed.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1978 - Subsecs. (a) to (c), (e), (f). Pub. L. 95-454 substituted

''Office of Personnel Management'' and ''Office'' for ''Civil

Service Commission'' and ''Commission'', respectively, wherever

appearing.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714a, 8714b, 8714c of

this title.

-CITE-

5 USC Sec. 8711 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8711. Basic tables of premium rates

-STATUTE-

(a) A policy purchased under this chapter shall include, for the

first policy year, basic tables of premium rates as follows:

(1) For group life insurance, a schedule of basic premium rates

by age which the Office of Personnel Management determines to be

consistent with the lowest schedule of basic premium rates

generally charged for new group life insurance policies issued to

large employers.

(2) For group accidental death and dismemberment insurance, a

basic premium rate which the Office determines is consistent with

the lowest rate generally charged for new group accidental death

and dismemberment policies issued to large employers.

The schedule for group life insurance, except as otherwise provided

by this section, shall be applied to the distribution by age of the

amounts of group life insurance under the policy at its date of

issuance to determine an average basic premium rate per $1,000 of

life insurance.

(b) The policy shall provide that the basic premium rates

determined for the first policy year continue for later policy

years except as readjusted for a later year based on experience

under the policy. The company issuing the policy may make the

readjustment on a basis that the Office determines in advance of

the policy year is consistent with the general practice of life

insurance companies under policies of group life and group

accidental death and dismemberment insurance issued to large

employers.

(c) The policy shall provide that if the Office determines that

ascertaining the actual age distribution of the amounts of group

life insurance in force at the date of issue of the policy or at

the end of the first or any later year of insurance thereunder

would not be possible except at a disproportionately high expense,

the Office may approve the determination of a tentative average

group life premium rate, for the first or any later policy year,

instead of using the actual age distribution. The Office, on

request by the company issuing the policy, shall redetermine the

tentative average premium rate during any policy year, if

experience indicates that the assumptions made in determining that

rate were incorrect for that year.

(d) The policy shall stipulate the maximum expense and risk

charges for the first policy year. The Office shall determine

these charges on a basis consistent with the general level of

charges made by life insurance companies under policies of group

life and accidental death and dismemberment insurance issued to

large employers. The maximum charges continue from year to year,

except that the Office may redetermine them for any year either by

agreement with the company issuing the policy or on written notice

given to the company at least 1 year before the beginning of the

year for which the redetermined maximum charges will be effective.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 597; Pub. L. 95-454, title

IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2097 (less Aug. 17, 1954, ch.

(d)). 752, Sec. 8 (less

(d)), 68 Stat. 740.

-------------------------------

In subsection (a), the word ''policy'' is substituted for

''policy or policies'' on authority of 1 U.S.C. 1. In subsections

(b) and (c), the words ''The policy'' are substituted for ''Each

policy so purchased''. In subsections (b), (c), and (d), the word

''insurance'', preceding the word ''company'', is omitted as

unnecessary; and the word ''company'' is substituted for ''company

or companies'' on authority of 1 U.S.C. 1.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1978 - Subsecs. (a) to (d). Pub. L. 95-454 substituted ''Office

of Personnel Management'' and ''Office'' for ''Civil Service

Commission'' and ''Commission'', respectively, wherever appearing.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714a, 8714b, 8714c of

this title.

-CITE-

5 USC Sec. 8712 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8712. Annual accounting; special contingency reserve

-STATUTE-

A policy purchased under this chapter shall provide for an

accounting to the Office of Personnel Management not later than 90

days after the end of each policy year. The accounting shall set

forth, in a form approved by the Office -

(1) the amounts of premiums actually accrued under the policy

from its date of issue to the end of the policy year;

(2) the total of all mortality and other claim charges incurred

for that period; and

(3) the amounts of the insurers' expense and risk charges for

that period.

An excess of the total of paragraph (1) of this section over the

sum of paragraphs (2) and (3) of this section shall be held by the

company issuing the policy as a special contingency reserve to be

used by the company only for charges under the policy. The reserve

shall bear interest at a rate determined in advance of each policy

year by the company and approved by the Office as being consistent

with the rate generally used by the company for similar funds held

under other group life insurance policies. When the Office

determines that the special contingency reserve has attained an

amount estimated by it to make satisfactory provision for adverse

fluctuations in future charges under the policy, any further excess

shall be deposited in the Treasury of the United States to the

credit of the Employees' Life Insurance Fund. When a policy is

discontinued, any balance remaining in the special contingency

reserve after all charges have been made shall be deposited in the

Treasury to the credit of the Fund. The company may make the

deposit in equal monthly installments over a period of not more

than 2 years.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 598; Pub. L. 95-454, title

IX, Sec. 906(a)(2), (3), Oct. 13, 1978, 92 Stat. 1224.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2097(d). Aug. 17, 1954, ch.

752, Sec. 8(d), 68

Stat. 741.

-------------------------------

The words ''A policy purchased under this chapter'' are

substituted for ''Each such policy'' for clarity. The word

''insurance'', preceding the word ''company'', is omitted as

unnecessary; and the word ''company'' is substituted for ''company

or companies'' on authority of 1 U.S.C. 1.

The words ''Employees' Life Insurance Fund'' are substituted for

''fund''.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1978 - Pub. L. 95-454 substituted ''Office of Personnel

Management'' and ''Office'' for ''Civil Service Commission'' and

''Commission'', respectively.

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714a, 8714b, 8714c of

this title.

-CITE-

5 USC Sec. 8713 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8713. Effect of other statutes

-STATUTE-

Any provision of law outside of this chapter provides coverage or

any other benefit under this chapter to any individuals who (based

on their being employed by an entity other than the Government)

would not otherwise be eligible for any such coverage or benefit

shall not apply with respect to any individual appointed,

transferred, or otherwise commencing that type of employment on or

after October 1, 1988.

-SOURCE-

(Added Pub. L. 100-238, title I, Sec. 108(a)(2)(A), Jan. 8, 1988,

101 Stat. 1747.)

-MISC1-

PRIOR PROVISIONS

A prior section 8713, Pub. L. 89-554, Sept. 6, 1966, 80 Stat.

598; Pub. L. 90-83, Sec. 1(93), Sept. 11, 1967, 81 Stat. 219; Pub.

L. 95-454, title IX, Sec. 906(a)(1), (4), Oct. 13, 1978, 92 Stat.

1224, 1225, provided for an advisory committee to be appointed by

the Director of the Office of Personnel Management to be composed

of five employees insured under this chapter, to serve without

additional pay, to advise the Office regarding matters of concern

to employees under this chapter, prior to repeal by Pub. L. 96-427,

Sec. 9(a), Oct. 10, 1980, 94 Stat. 1837, effective Oct. 10, 1980,

with the repeal to have no effect in the case of an employee who

died, was separated, or retired before Oct. 10, 1980.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 22 section 6103; title 25

section 450i.

-CITE-

5 USC Sec. 8714 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8714. Employees' Life Insurance Fund

-STATUTE-

(a) The amounts withheld from employees under section 8707 of

this title and the sums contributed from appropriations and funds

under section 8708 of this title shall be deposited in the Treasury

of the United States to the credit of the Employees' Life Insurance

Fund. The Fund is available without fiscal year limitation for -

(1) premium payments under an insurance policy purchased under

this chapter; and

(2) expenses incurred by the Office of Personnel Management in

the administration of this chapter within the limitations that

may be specified annually by appropriation acts.

(b) The Secretary of the Treasury may invest and reinvest any of

the money in the Fund in interest-bearing obligations of the United

States, and may sell these obligations for the purposes of the

Fund. The interest on and the proceeds from the sale of these

obligations, and the income derived from dividend or premium rate

adjustments from insurers, become a part of the Fund.

(c)(1) No tax, fee, or other monetary payment may be imposed or

collected by any State, the District of Columbia, or the

Commonwealth of Puerto Rico, or by any political subdivision or

other governmental authority thereof, on, or with respect to, any

premium paid under an insurance policy purchased under this

chapter.

(2) Paragraph (1) of this subsection shall not be construed to

exempt any company issuing a policy of insurance under this chapter

from the imposition, payment, or collection of a tax, fee, or other

monetary payment on the net income or profit accruing to or

realized by that company from business conducted under this

chapter, if that tax, fee, or payment is applicable to a broad

range of business activity.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 598; Pub. L. 95-454, title

IX, Sec. 906(a)(2), Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-499,

title IV, Sec. 405(a), Dec. 5, 1980, 94 Stat. 2606.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2094(c) Aug. 17, 1954, ch.

(less applicability 752, Sec. 5(c)

to 5 U.S.C. 2099), (less applicability

(d). to Sec. 10), 68

Stat. 739. Aug. 11,

1955, ch. 794, Sec.

1(a) ''(c) (less

applicability to

Sec. 10)'', (b), 69

Stat. 676.

Apr. 11, 1958, Pub.

L. 85-377, Sec. 1

(less applicability

to Sec. 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 appropriations available to the Commission

for salaries and expenses for the fiscal year 1955 available on a

reimbursable 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 definitions

applicable and the style of this title as outlined in the preface

to the report.

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 Commission''.

EFFECTIVE DATE OF 1980 AMENDMENT

Section 405(b) of Pub. L. 96-499 provided that: ''The amendment

made by subsection (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, Sec. 4, Oct. 25, 1994, 108 Stat. 4232, provided

that: ''Notwithstanding section 8714(a)(1) of title 5, United

States Code, the Office of Personnel Management 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.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714a, 8714b, 8714c of

this title; title 20 section 125; title 25 section 450i.

-CITE-

5 USC Sec. 8714a 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8714a. Optional insurance

-STATUTE-

(a) Under the conditions, directives, and terms specified in

sections 8709-8712 of this title, the Office of Personnel

Management, without regard to section 5 of title 41, may purchase a

policy which shall make available to each insured employee equal

amounts of optional life insurance and accidental death and

dismemberment insurance in addition to the amounts provided in

section 8704(a) of this title.

(b) 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 insurance equal

to his annual pay.

(c)(1) Except as otherwise provided in this subsection, the

optional insurance on an employee stops on his 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.

(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 preceding the date of

such retirement, or

(ii) the full period or periods of service during which the

employee was entitled to be insured, 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 subchapter 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 preceding the date such

employee becomes entitled to such compensation, or

(ii) the full period or periods of service during which the

employee was entitled to be insured, 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 injury 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 continued under

subparagraph (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 minimum 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.

(3) Notwithstanding paragraph (c)(1) of this section, (FOOTNOTE

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

requirements 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 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.

(FOOTNOTE 1) So in original. Probably should be ''paragraph (1)

of this subsection,''.

(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 period in which an employee continues optional life

insurance after retirement or while in receipt of compensation for

work injuries, as provided 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 calendar month in

which he becomes 65 years of age, the optional life insurance shall

be without cost to him. Amounts so withheld shall be deposited,

used, and invested as provided in section 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 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.

(3) Notwithstanding paragraph (1), an employee who is subject to

withholdings under this subsection and whose pay, annuity, or

compensation is insufficient to cover such withholdings may

nevertheless continue optional 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

compensation, an amount equal to the withholdings that would

otherwise be required under this subsection.

(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 appropriate.

(f) The amount of optional life, or life and accidental death,

insurance in force on an employee at the date of his death shall be

paid as provided in section 8705 of this title.

-SOURCE-

(Added Pub. L. 90-206, title IV, Sec. 404(1), Dec. 16, 1967, 81

Stat. 647; amended Pub. L. 95-454, title IX, Sec. 906(a)(2), (3),

Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95-583, Sec. 1(c), Nov. 2,

1978, 92 Stat. 2481; Pub. L. 96-427, Sec. 6, Oct. 10, 1980, 94

Stat. 1834; Pub. L. 98-353, title II, Sec. 206, July 10, 1984, 98

Stat. 351, as amended by Pub. L. 99-336, Sec. 7(1), June 19, 1986,

100 Stat. 639; Pub. L. 99-335, title II, Sec. 207(k)(3), June 6,

1986, 100 Stat. 597; Pub. L. 99-336, Sec. 7(1), June 19, 1986, 100

Stat. 639; Pub. L. 105-311, Sec. 6(2), Oct. 30, 1998, 112 Stat.

2951.)

-MISC1-

AMENDMENTS

1998 - Subsec. (d)(3). Pub. L. 105-311 added par. (3).

1986 - Subsec. (c)(1). Pub. L. 99-336 amended Pub. L. 98-353,

Sec. 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 discontinuance 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, Sec. 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 active employment for purposes of

this chapter.

Subsec. (c)(3). Pub. L. 98-353, Sec. 206, added par. (3).

1980 - Subsec. (c)(2)(C). Pub. L. 96-427, Sec. 6(a), substituted

provisions that the amount of optional life insurance shall be

reduced by 2% at the end of each calendar 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, Sec. 6(b), designated existing

provisions as par. (1) and added par. (2).

1978 - Subsecs. (a), (b). Pub. L. 95-454 substituted ''Office of

Personnel Management'' for ''Civil Service Commission'' and

''Office'' for ''Commission'' wherever appearing.

Subsec. (c)(1). Pub. L. 95-583, Sec. 1(c)(1), substituted

reference to section ''8706(c)'' for ''8706(d)''.

Subsec. (c)(2). Pub. L. 95-583, Sec. 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 annuity 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 injuries 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 ''Commission'',

was executed to text of subsec. (c)(2) as amended by Pub. L.

95-583. See Effective Date of 1978 Amendments note below.

Subsec. (d). Pub. L. 95-583, Sec. 1(c)(3), struck out ''or

8706(c)'' after ''section 8706(b)''.

Subsec. (e). Pub. L. 95-454 substituted ''Office'' for

''Commission''.

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 Effective Date note under

section 8401 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-353, Sec. 206, as amended generally by

Pub. L. 99-336, Sec. 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, Sec. 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 employee 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

Section 405(b) of Pub. L. 90-206 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 enactment (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 opportunity 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 period beginning on the date of enactment and ending on

the effective date prescribed by or pursuant to this subsection

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 subsection, (i) the period

during which such employee may elect to receive optional insurance

under the amendment 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 finally separated, or retired

prior to Dec. 16, 1967, see section 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

Section 11 of Pub. L. 96-427 provided that: ''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 Management in implementing the amendments

made by sections 7 and 8 of this Act (enacting sections 8714b,

8714c, and 8701(d) of this title).''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714b, 8714c, 8714d of

this title.

-CITE-

5 USC Sec. 8714b 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8714b. Additional optional life insurance

-STATUTE-

(a) Under the conditions, directives, and terms specified in

sections 8709 through 8712 of this title, the Office of Personnel

Management, without regard to section 5 of title 41, may purchase a

policy which shall make available to each employee insured under

section 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

available under section 8714a of this title.

(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

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 employee may

reduce or stop coverage elected pursuant to this section at any

time.

(c)(1) Except as otherwise provided in this subsection, the

additional optional insurance 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. 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. 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 salary 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 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

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.

(3) The amount of additional optional insurance continued under

paragraph (2) shall be continued, with or without reduction, in

accordance with the employee's written election at the time

eligibility to continue insurance during retirement or receipt of

compensation arises, as follows:

(A) The employee may elect to have withholdings cease in

accordance with subsection (d), in which case -

(i) the amount of additional optional insurance 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 insurance 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 subsequently cancel such election, in which case

additional 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 paragraph (2) may

elect, under conditions prescribed by the Office of Personnel

Management, to continue all or a portion of so much of the

additional optional insurance as has been in force for not less

than -

(i) the 5 years of service immediately preceding the date of

the event which would cause insurance to stop under paragraph

(1); or

(ii) the full period or periods of service during 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 percent

effective at the beginning of the second calendar 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 coverage 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 determines necessary to cover associated

administrative 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 continue additional

optional insurance may be made under this paragraph 3 years after

the effective 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 insurance coverage and

for conversion to an individual policy of life insurance under

conditions approved by the Office.

(d)(1) During each period in which the additional optional

insurance 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 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 continued as provided

under subsection (c)(3)(A), 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 (and any amounts withheld as

provided in subsection (c)(3)(B)) 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 additional

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.

(3) Notwithstanding paragraph (1), an employee who is subject to

withholdings under this subsection and whose pay, annuity, or

compensation is insufficient to cover such withholdings may

nevertheless continue additional optional 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 compensation, an amount equal to the withholdings that

would otherwise be required under this subsection.

(e) The cost of the additional optional insurance 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 additional optional life insurance in force on

an employee at the date of his death shall be paid as provided in

section 8705 of this title.

-SOURCE-

(Added Pub. L. 96-427, Sec. 7(a), Oct. 10, 1980, 94 Stat. 1834;

amended Pub. L. 98-353, title II, Sec. 206, 207, July 10, 1984, 98

Stat. 351, as amended by Pub. L. 99-336, Sec. 7(1), June 19, 1986,

100 Stat. 639; Pub. L. 99-335, title II, Sec. 207(k)(4), June 6,

1986, 100 Stat. 597; Pub. L. 99-336, Sec. 7(1), June 19, 1986, 100

Stat. 639; Pub. L. 105-311, Sec. 3(2), 6(3), 7(a), (c), Oct. 30,

1998, 112 Stat. 2950-2953.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b). Pub. L. 105-311, Sec. 3(2), in first

sentence, struck out ''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)''

after ''$1,000)''.

Subsec. (c)(2). Pub. L. 105-311, Sec. 7(a)(1)(A), struck out at

end ''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.''

Subsec. (c)(3) to (5). Pub. L. 105-311, Sec. 7(a)(1)(B), added

pars. (3) to (5).

Subsec. (d)(1). Pub. L. 105-311, Sec. 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, Sec. 6(3), added par. (3).

1986 - Subsec. (c)(1). Pub. L. 98-353, Sec. 206, as amended

generally by Pub. L. 99-336, Sec. 7(1), inserted sentence which

deemed justices and judges described in section 8701(a)(5)(ii) and

(iii) of this chapter to continue in active employment for purposes

of this chapter.

Pub. L. 99-335 substituted ''Except as otherwise provided in this

subsection, the additional optional insurance 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 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''.

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 salary 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 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.''

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 period 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 prescribe

that is at least 60 days after Oct. 30, 1998, see section 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, Sec. 206, as amended generally by

Pub. L. 99-336, Sec. 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, Sec. 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 Effective 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 finally 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.

REPORT TO CONGRESS

Pub. L. 105-311, Sec. 7(b), Oct. 30, 1998, 112 Stat. 2953,

provided that: ''Not later than 3 years after the date of enactment

of this Act (Oct. 30, 1998), the Office of Personnel Management

shall submit a report to Congress on additional optional insurance

provided under section 8714b(c)(5) of title 5, United States Code

(as added by subsection (a) of this section). Such report shall

include recommendations on whether continuation for such additional

optional insurance should terminate as provided under such section,

be extended, or be made permanent.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 8714c, 8714d of this

title.

-CITE-

5 USC Sec. 8714c 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8714c. Optional life insurance on family members

-STATUTE-

(a) Under the conditions, directives, and terms specified in

sections 8709 through 8712 of this title, the Office of Personnel

Management, without regard to section 5 of title 41, may purchase a

policy which shall make available 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 multiples, 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 section 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 subsection, the

optional life insurance on family members shall stop at the earlier

of the employee's death, the employee's separation from the

service, or 12 months after discontinuance of pay, subject to a

provision for temporary extension of life insurance coverage and

for conversion 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

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

the same conditions as provided 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 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 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.

Notwithstanding 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 respect 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 members 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.

(3) Notwithstanding paragraph (1), an employee who is subject to

withholdings under this subsection and whose pay, annuity, or

compensation is insufficient to cover such withholdings may

nevertheless continue optional 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 required 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 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.

-SOURCE-

(Added Pub. L. 96-427, Sec. 8(a), Oct. 10, 1980, 94 Stat. 1836;

amended Pub. L. 98-353, title II, Sec. 206, as amended by Pub. L.

99-336, Sec. 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 99-335,

title II, Sec. 207(k)(5), June 6, 1986, 100 Stat. 598; Pub. L.

99-336, Sec. 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105-311,

Sec. 6(4), 8, Oct. 30, 1998, 112 Stat. 2951, 2953.)

-MISC1-

AMENDMENTS

1998 - Subsec. (b). Pub. L. 105-311, Sec. 8(a), amended subsec.

(b) generally. Prior to amendment, subsec. (b) read as follows:

''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 child described in section 8701(d). The employee may stop

coverage elected under this section at any time.''

Subsec. (c)(2). Pub. L. 105-311, Sec. 8(b)(1), substituted

''section 8714b(c)(2) through (4)'' for ''section 8714b(c)(2) of

this title''.

Subsec. (d)(1). Pub. L. 105-311, Sec. 8(b)(2), inserted before

last sentence ''Notwithstanding 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 respect to such

former employee.''

Subsec. (d)(3). Pub. L. 105-311, Sec. 6(4), added par. (3).

1986 - Subsec. (c)(1). Pub. L. 99-336 amended Pub. L. 98-353,

Sec. 206, generally. See 1984 Amendment note below.

Pub. L. 99-335 amended par. (1) generally, effective Jan. 1,

1977. Prior to such effective date, par. (1) read as follows:

''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

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. 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, Sec. 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 active employment for purposes of

this chapter.

EFFECTIVE DATE OF 1998 AMENDMENT

Amendment by section 6(4) of Pub. L. 105-311 effective on the

first day of the first applicable pay period beginning on or after

Oct. 30, 1998, and amendment by section 8 of Pub. L. 105-311

effective on the first day of the first pay period which begins on

or after the 180th day following Oct. 30, 1998, or on any earlier

date that the Office of Personnel Management may prescribe, see

section 11(d), (f) 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 Effective Date note under

section 8401 of this title.

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by Pub. L. 98-353, Sec. 206, as amended generally by

Pub. L. 99-336, Sec. 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, Sec. 7(2), set out as a note under section 8706 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 finally 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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8714d of this title.

-CITE-

5 USC Sec. 8714d 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8714d. Option to receive ''living benefits''

-STATUTE-

(a) For the purpose of this section, an individual shall be

considered to be ''terminally ill'' if such individual has a

medical prognosis that such individual's life expectancy is 9

months or less.

(b) The Office of Personnel Management shall prescribe

regulations under which any individual covered by group life

insurance under section 8704(a) may, if such individual is

terminally ill, elect to receive a lump-sum payment equal to -

(1) the full amount of insurance under section 8704(a) (or

portion thereof designated for this purpose under subsection

(d)(4)) which would otherwise be payable under this chapter (on

the establishment of a valid claim) -

(A) computed based on a date determined under regulations of

the Office (but not later than 30 days after the date on which

the individual's application for benefits under this section is

approved or deemed approved under subsection (d)(3)); and

(B) assuming continued coverage under this chapter at that

time;

reduced by

(2) an amount necessary to assure that there is no increase in

the actuarial value of the benefit paid (as determined under

regulations of the Office).

(c)(1) If a lump-sum payment is taken under this section -

(A) no insurance under the provisions of section 8704(a) or (b)

shall be payable based on the death or any loss of the individual

involved, unless the lump-sum payment represents only a portion

of the total benefits which could have been taken, in which case

benefits under those provisions shall remain in effect, except

that the basic insurance amount on which they are based -

(i) shall be reduced by the percentage which the designated

portion comprised relative to the total benefits which could

have been taken (rounding the result to the nearest multiple of

$1,000 or, if midway between multiples of $1,000, to the next

higher multiple of $1,000); and

(ii) shall not be subject to further adjustment; and

(B) deductions and withholdings under section 8707, and

contributions under section 8708, shall be terminated with

respect to such individual (or reduced in a manner consistent

with the percentage reduction in the individual's basic insurance

amount, if applicable), effective with respect to any amounts

which would otherwise become due on or after the date of payment

under this section.

(2) An individual who takes a lump-sum payment under this section

(whether full or partial) remains eligible for optional benefits

under sections 8714a-8714c (subject to payment of the full cost of

those benefits in accordance with applicable provisions of the

section or sections involved, to the same extent as if no election

under this section had been made).

(d)(1) The Office's regulations shall include provisions

regarding the form and manner in which an application under this

section shall be made and the procedures in accordance with which

any such application shall be considered.

(2) An application shall not be considered to be complete unless

it includes such information and supporting evidence as the

regulations require, including certification by an appropriate

medical authority as to the nature of the individual's illness and

that the individual is not expected to live more than 9 months

because of that illness.

(3)(A) In order to ascertain the reliability of any medical

opinion or finding submitted as part of an application under this

section, the covered individual may be required to submit to a

medical examination under the direction of the agency or entity

considering the application. The individual shall not be liable

for the costs associated with any examination required under this

subparagraph.

(B) Any decision by the reviewing agency or entity with respect

to an application for benefits under this section (including one

relating to an individual's medical prognosis) shall not be subject

to administrative review.

(4)(A) An individual making an election under this section may

designate that only a limited portion (expressed as a multiple of

$1,000) of the total amount otherwise allowable under this section

be paid pursuant to such election.

(B) A designation under this paragraph may not be made by an

individual described in paragraph (1) or (2) of section 8706(b).

(5) An election to receive benefits under this section shall be

irrevocable, and not more than one such election may be made by any

individual.

(6) The regulations shall include provisions to address the

question of how to apply section 8706(b)(3)(B) in the case of an

electing individual who has attained 65 years of age.

-SOURCE-

(Added Pub. L. 103-409, Sec. 2(a), Oct. 25, 1994, 108 Stat. 4230.)

-MISC1-

EFFECTIVE DATE OF 1994 AMENDMENT

Pub. L. 103-409, Sec. 3(a), Oct. 25, 1994, 108 Stat. 4232,

provided that: ''The amendments made by section 2 (enacting this

section) shall take effect 9 months after the date of the enactment

of this Act (Oct. 25, 1994).''

-CITE-

5 USC Sec. 8715 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8715. Jurisdiction of courts

-STATUTE-

The district courts of the United States have original

jurisdiction, concurrent with the United States Court of Federal

Claims, of a civil action or claim against the United States

founded on this chapter.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 599; Pub. L. 97-164, title

I, Sec. 160(a)(2), Apr. 2, 1982, 96 Stat. 48; Pub. L. 102-572,

title IX, Sec. 902(b)(1), Oct. 29, 1992, 106 Stat. 4516.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

5 U.S.C. 2103 (less Aug. 17, 1954, ch.

applicability to 5 752, Sec. 14 (less

U.S.C. 2099). applicability to

Sec. 10), 68 Stat.

743.

-------------------------------

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1992 - Pub. L. 102-572 substituted ''United States Court of

Federal Claims'' for ''United States Claims Court''.

1982 - Pub. L. 97-164 substituted ''United States Claims Court''

for ''Court of Claims''.

EFFECTIVE DATE OF 1992 AMENDMENT

Amendment by Pub. L. 102-572 effective Oct. 29, 1992, see section

911 of Pub. L. 102-572, set out as a note under section 171 of

Title 28, Judiciary and Judicial Procedure.

EFFECTIVE DATE OF 1982 AMENDMENT

Amendment by Pub. L. 97-164 effective Oct. 1, 1982, see section

402 of Pub. L. 97-164, set out as a note under section 171 of Title

28, Judiciary and Judicial Procedure.

-CITE-

5 USC Sec. 8716 01/06/03

-EXPCITE-

TITLE 5 - GOVERNMENT ORGANIZATION AND EMPLOYEES

PART III - EMPLOYEES

Subpart G - Insurance and Annuities

CHAPTER 87 - LIFE INSURANCE

-HEAD-

Sec. 8716. Regulations

-STATUTE-

(a) The Office of Personnel Management may prescribe regulations

necessary to carry out the purposes of this chapter.

(b) The regulations of the Office may prescribe the time at which

and the conditions under which an employee is eligible for coverage

under this chapter. The Office, after consulting the head of the

agency or other employing authority concerned, may exclude an

employee on the basis of the nature and type of his employment or

conditions pertaining to it, such as short-term appointment,

seasonal, intermittent employment, and employment of like nature.

The Office may not exclude -

(1) an employee or group of employees solely on the basis of

the hazardous nature of employment;

(2) a teacher in the employ of the Board of Education of the

District of Columbia, whose pay is fixed by section 1501 of title

31, District of Columbia Code, on the basis of the fact that the

teacher is serving under a temporary appointment if the teacher

has been so employed by the Board for a period or periods

totaling not less than two school years; or

(3) an employee who is occupying a position on a part-time

career employment basis (as defined in section 3401(2) of this

title).

(c) The Secretary of Agriculture shall prescribe regulations to

effect the application and operation of this chapter to an

individual named by section 8701(a)(8) of this title.

-SOURCE-

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 599; Pub. L. 95-437, Sec.

4(b), Oct. 10, 1978, 92 Stat. 1058; Pub. L. 95-454, title IX, Sec.

906(a)(2), (3), (c)(2)(F), (G), Oct. 13, 1978, 92 Stat. 1224,

1227.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Derivation U.S. Code Revised Statutes and

Statutes at Large

---------------------------------------------------------------------

(a) 5 U.S.C. 2100 (less Aug. 17, 1954, ch.

applicability to 5 752, Sec. 11 (less

U.S.C. 2099). applicability to

Sec. 10), 68 Stat.

742.

(b), (c) 5 U.S.C. 2091(a) Aug. 17, 1954, ch.

(words between 6th 752, Sec. 2(a)

and 7th commas of (words between 6th

1st sentence and 2d and 7th commas of

sentence), (d) 1st sentence and 2d

(words between 1st sentence), 68 Stat.

and 2d commas of 736. July 1, 1960,

1st sentence, and Pub. L. 86-568,

2d sentence). Sec. 115(c) ''(d)

(words between 1st

and 2d commas of

1st sentence, and

2d sentence)'', 74

Stat. 302.

Oct. 6, 1964, Pub.

L. 88-631, Sec. 2,

78 Stat. 1007.

-------------------------------

In subsection (a), the words ''Except as otherwise provided

herein'' are omitted as unnecessary since the authority to

prescribe regulations is carried into this section.

In subsection (b), the words ''section 1501 of title 31, District

of Columbia Code'' are substituted for ''section 1 of the District

of Columbia Teachers' Salary Act of 1955 (69 Stat. 521), as amended

(Sec. 31-1501, D.C. Code, 1961 edition)''.

Standard changes are made to conform with the definitions

applicable and the style of this title as outlined in the preface

to the report.

AMENDMENTS

1978 - Subsec. (a). Pub. L. 95-454, Sec. 906(a)(2), substituted

''Office of Personnel Management'' for ''Civil Service

Commission''.

Subsec. (b). Pub. L. 95-454, Sec. 906(a)(3), substituted

''Office'' for ''Commission'' wherever appearing.

Pub. L. 95-437 substituted ''intermittent employment'' for

''intermittent or part-time employment'' in provision preceding

par. (1), and added par. (3).

Pub. L. 95-454, Sec. 906(c)(2)(F), (G), substituted ''3401'' for

''3391'' in par. (3).

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.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 8701 of this title.

-CITE-