Tap any paragraph to write a margin note. Your notes collect in the Desk below the text and file under cases with @. The side-by-side margin rail opens on a larger screen.

§
Marginalia
Code · REGISTER · 2021-03-29 · Office of Personnel Management · Proposed Rules

Proposed Rules. Notice

1,216 words·~6 min read·/register/2021/03/29/2021-06324

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

BILLING CODE 7590-01-P OFFICE OF PERSONNEL MANAGEMENT Federal Employees' Retirement System; Present Value Factors AGENCY: Office of Personnel Management. ACTION: Notice. SUMMARY: The Office of Personnel Management
(OPM)is providing notice of adjusted present value factors applicable to retirees who elect to provide survivor annuity benefits to a spouse based on post-retirement marriage, and to retiring employees who elect the alternative form of annuity or elect to credit certain service with nonappropriated fund instrumentalities. This notice is necessary to conform the present value factors to changes in the economic and demographic assumptions adopted by the Board of Actuaries of the Civil Service Retirement System. DATES: The revised present value factors apply to survivor reductions or employee annuities that commence on or after October 1, 2021. ADDRESSES: Send requests for actuarial assumptions and data to the Board of Actuaries, care of Gregory Kissel, Senior Actuary, Office of Healthcare and Insurance, Office of Personnel Management, Room 4316, 1900 E Street NW, Washington, DC 20415, or by email to *actuary@opm.gov.* FOR FURTHER INFORMATION CONTACT: Karla Yeakle,
(202)606-0299. SUPPLEMENTARY INFORMATION: Several provisions of the Federal Employees' Retirement System
(FERS)require reduction of annuities on an actuarial basis. Under each of these provisions, OPM is required to issue regulations on the method of determining the reduction to ensure that the present value of the reduced annuity plus a lump-sum equals, to the extent practicable, the present value of the unreduced benefit. The regulations for each of these benefits provide that OPM will publish a notice in the **Federal Register** whenever it changes the factors used to compute the present values of these benefits. Section 842.706(a) of title 5, Code of Federal Regulations, prescribes the method for computing the reduction in the beginning rate of annuity payable to a retiree who elects an alternative form of annuity under 5 U.S.C. 8420a. That reduction is required to produce an annuity that is the actuarial equivalent of the annuity of a retiree who does not elect an alternative form of annuity. The present value factors listed below are used to compute the annuity reduction under 5 CFR 842.706(a). Section 842.615 of title 5, Code of Federal Regulations, prescribes the use of these factors for computing the reduction required for certain elections to provide survivor annuity benefits based on a post-retirement marriage or divorce under 5 U.S.C. 8416(b), 8416(c), or § 8417(b). Under section 11004 of the Omnibus Budget Reconciliation Act of 1993, Public Law 103-66, effective October 1, 1993, OPM ceased collection of these survivor election deposits by means of either a lump-sum payment or installments. Instead, OPM is required to establish a permanent actuarial reduction in the annuity of the retiree. This means that OPM must take the amount of the deposit computed under the old law and translate it into a lifetime reduction in the retiree's benefit. Subpart F of part 847 of title 5, Code of Federal Regulations, prescribes the use of present value factors for computing the deficiency the retiree must pay to receive credit for certain service with nonappropriated fund instrumentalities made creditable by an election under section 1043 of Public Law 104-106. Subpart I of part 847 of title 5, Code of Federal Regulations, prescribes the use of present value factors for employees that elect to credit nonappropriated fund instrumentality service to qualify for immediate retirement under section 1132 of Public Law 107-107. OPM published the present value factors currently in effect on April 6, 2020, at 85 FR 19175. On March 29, 2021, OPM published a notice to revise the normal cost percentage under the Federal Employees' Retirement System
(FERS)Act of 1986, Public Law 99-335, based on changed assumptions adopted by the Board of Actuaries of the Civil Service Retirement System. Under 5 U.S.C. 8461(i), those changes require corresponding changes in the present value factors used to produce actuarially equivalent benefits when required by the FERS Act. The revised factors will become effective on October 1, 2021, to correspond with the changes in FERS normal cost percentages. For alternative forms of annuity, the new factors will apply to annuities that commence on or after October 1, 2021. See 5 CFR 842.706. For survivor election deposits, the new factors will apply to survivor reductions that commence on or after October 1, 2021. See 5 CFR 842.615(b). For obtaining credit for service with certain nonappropriated fund instrumentalities, the new factors will apply to cases in which the date of computation under 5 CFR 847.603 or 847.809 is on or after October 1, 2021. See 5 CFR § 842.602, 842.616, 847.603, and § 847.809. OPM is, therefore, revising the tables of present value factors to read as follows: Table I—FERS Present Value Factors for Ages 62 and Older [Applicable to annuity payable following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-106, or under section 1132 of Public Law 107-107] Age Present value factor 62 224.7 63 218.0 64 211.3 65 204.5 66 197.7 67 190.8 68 183.9 69 176.9 70 170.0 71 163.0 72 156.1 73 149.2 74 142.4 75 135.7 76 129.0 77 122.5 78 116.1 79 109.7 80 103.6 81 97.6 82 91.7 83 86.1 84 80.6 85 75.3 86 70.3 87 65.5 88 60.9 89 56.7 90 52.6 91 48.9 92 45.4 93 42.2 94 39.2 95 36.5 96 34.0 97 31.7 98 29.7 99 27.9 100 26.3 101 24.8 102 23.3 103 21.9 104 20.4 105 18.9 106 17.0 107 14.2 108 9.5 109 6.4 Table II.A—FERS Present Value Factors for Ages 40 Through 61 [Applicable to annuity payable when annuity is not increased by cost-of-living adjustments before age 62 following an election under 5 U.S.C. 8416(b), 8416(c), 8417(b), 8420a, under section 1043 of Public Law 104-106, or under section 1132 of Public Law 107-107] Age Present value factor 40 270.0 41 268.3 42 266.6 43 264.9 44 263.1 45 261.3 46 259.4 47 257.5 48 255.6 49 253.7 50 251.7 51 249.7 52 247.6 53 245.5 54 243.3 55 241.2 56 239.0 57 236.7 58 234.4 59 232.0 60 229.6 61 227.2 Table II.B—FERS Present Value Factors for Ages 40 Through 61 [Applicable to annuity payable when annuity is increased by cost-of-living adjustments before age 62 following an election under 5 U.S.C. 8416(b), 8416 (c), 8417(b), or 8420a, under section 1043 of Public Law 104-106, or under section 1132 of Public Law 107-107] Age Present value factor 40 353.0 41 347.9 42 342.7 43 337.4 44 332.1 45 326.7 46 321.2 47 315.7 48 310.1 49 304.5 50 298.8 51 293.0 52 287.2 53 281.2 54 275.3 55 269.2 56 263.1 57 257.0 58 250.7 59 244.3 60 237.9 61 231.3 Table III—FERS Present Value Factors for Ages at Calculation Below 40 [Applicable to annuity payable following an election under section 1043 of Public Law 104-106 or under section 1132 of Public Law 107-107] Age at calculation Present value of a monthly annuity 17 444.2 18 441.1 19 438.0 20 434.7 21 431.5 22 428.1 23 424.7 24 421.2 25 417.6 26 413.9 27 410.2 28 406.3 29 402.4 30 398.4 31 394.3 32 390.1 33 385.8 34 381.4 35 377.0 36 372.4 37 367.7 38 362.9 39 358.0 Office of Personnel Management Alexys Stanley, Regulatory Affairs Analyst. [FR Doc. 2021-06324 Filed 3-26-21; 8:45 am]
Connectionstraces to 3
9 references not yet in our index
  • 5 CFR 842.706(a)
  • Pub. L. 103-66
  • Pub. L. 104-106
  • Pub. L. 107-107
  • Pub. L. 99-335
  • 5 CFR 842.706
  • 5 CFR 842.615(b)
  • 5 CFR 847.603
  • 5 CFR 842.602
Citation graph
cites case law
Proposed Rules
Notice
U.S.C.§ 8420a
U.S.C.§ 8416
U.S.C.§ 8461
Cite5 CFR 842.706(a)
Pub. L.Pub. L. 103-66
Pub. L.Pub. L. 104-106
Pub. L.Pub. L. 107-107
Pub. L.Pub. L. 99-335
Cites 12 · showing 8Cited by 0 across 0 sources
★   the supreme law of the land   ★
Don't Tread on Me
E Pluribus Unum — out of many, one

"If you don't know your rights, you don't have any."

Marginalia · a citizen's law index
A research desk, not legal advice. Always read the cited source before relying on a summary.
Questions or an issue? support@self-law.org
disclaimerMarginalia is a research index, not a law firm. Nothing on this site is legal, tax, or financial advice and no attorney–client relationship is formed by using it. Statutes, regulations, and case law change; summaries, search results, AI output, and member posts may be incomplete, out of date, or wrong. Any interpretation drawn from material on this site should be validated by a licensed attorney in your jurisdiction before you act on it.