5 U.S.C. § 8714c : US Code - Section 8714C: Optional life insurance on family members

Search 5 U.S.C. § 8714c : US Code - Section 8714C: Optional life insurance on family members

(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.