5 U.S.C. § 8714b : US Code - Section 8714B: Additional optional life insurance

Search 5 U.S.C. § 8714b : US Code - Section 8714B: Additional optional life insurance

(a) Under the conditions, directives, and terms specified in
sections 8709 through 8712 of this title, the Office of Personnel
Management, 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.