5 U.S.C. § 8714a : US Code - Section 8714A: Optional insurance

Search 5 U.S.C. § 8714a : US Code - Section 8714A: Optional insurance

(a) Under the conditions, directives, and terms specified in
sections 8709-8712 of this title, the Office of Personnel
Management, without regard to section 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,(!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.
(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.