[Federal Register: August 17, 2007 (Volume 72, Number 159)]
[Proposed Rules]               
[Page 46178-46183]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17au07-34]                         

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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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[[Page 46178]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 850

RIN 3206-AL34

 
Retirement Systems Modernization

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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

SUMMARY: The Office of Personnel Management (OPM) is issuing proposed 
rules to authorize alternative provisions for processing retirement and 
health and life insurance applications, notices, elections, and records 
under the agency's Retirement Systems Modernization (RSM) project. The 
RSM project is OPM's strategic e-Gov initiative to improve the quality 
and timeliness of services to employees and annuitants covered by the 
Civil Service Retirement System (CSRS) and the Federal Employees' 
Retirement System (FERS), as well as the Federal Employees' Group Life 
Insurance (FEGLI), the Federal Employees Health Benefits (FEHB) and 
Retired Federal Employees Health Benefits (RFEHB) Programs, by 
modernizing business processes and the technology that supports them. 
Certain regulatory provisions governing the processing of benefits 
under CSRS, FERS, FEGLI, FEHB and RFEHB are incompatible with the 
effort to modernize retirement and insurance applications and claims 
processing. Therefore, exceptions from these provisions need to be 
authorized.

DATES: Comments must be received on or before September 17, 2007.

FOR FURTHER INFORMATION CONTACT: James Giuseppe, (202) 606-0299.

ADDRESSES: You may submit comments, identified by docket number and/or 
RIN number by any of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 

Follow the instructions for submitting comments.
     E-mail: combox@opm.gov. Include the docket number and/or 
RIN number in the subject line of the message.
     Fax: (202) 606-0990.
     Mail: John Panagakos, Manager, Retirement Group, Office of 
Personnel Management, 1900 E Street, NW., Room 4351, Washington, DC 
20415.

SUPPLEMENTARY INFORMATION: 

Overview of Retirement Systems Modernization

    Retirement Systems Modernization (RSM) is a strategic initiative of 
the Office of Personnel Management (OPM) to improve the quality and 
timeliness of services to individuals covered by the Civil Service 
Retirement System (CSRS) and the Federal Employees' Retirement System 
(FERS), as well as those covered by the Federal Employees' Group Life 
Insurance (FEGLI), the Federal Employees Health Benefits (FEHB) and 
Retired Federal Employees Health Benefits (RFEHB) Programs, by 
modernizing business processes and the technology that supports them. 
The RSM program will transform the retirement process, and health and 
life insurance elections, by devising more efficient and effective 
business systems to respond to increased customer demand for higher 
levels of customer service and online self-service tools.
    New Web-based tools will be available on demand for Federal 
employees to plan early for their retirement and for annuitants to make 
health and life insurance elections. System operators will have secure 
access to Federal employees' and annuitants' information in the system, 
allowing for enhanced retirement and post-retirement counseling. The 
automation of claims processing will be done more efficiently and 
consistently and will provide Federal employees and annuitants with 
access to their retirement and insurance information that was not 
previously available to them.
    However, some current regulatory provisions, especially the 
procedures they prescribe, are based on outdated technology. Those 
provisions are suitable for a paper-based system that will eventually 
cease to exist, but which will continue to operate concurrently for 
some time with respect to at least some aspects of retirement and 
insurance processing for some individuals.
    The nature of this initiative requires regulations to accommodate 
two somewhat unusual program needs. First, the regulations must allow 
for the differing requirements of two retirement processing programs 
operating simultaneously. Second, because the technology and procedures 
of the initiative are still in development and will continue to evolve 
even as the initiative becomes operational, the regulations cannot be 
specific on many subjects, but must be sufficiently flexible to enable 
the initiative to operate.
    Accordingly, the premise underlying the regulations OPM is 
proposing to promulgate in a new part 850 of title 5, Code of Federal 
Regulations, to support the RSM initiative, is that current regulations 
governing CSRS, FERS, FEGLI, FEHB and RFEHB will not be changed at this 
time, but the provisions authorized by the new part 850 will supersede 
the existing CSRS, FERS, FEGLI, FEHB and RFEHB provisions for those 
portions of cases processed under the initiative. Where there is a 
difference, the provisions authorized by the new part 850 will apply to 
those portions of cases processed under the initiative.

Phased Implementation of RSM

    Implementation of RSM will begin in February 2008. Retirement and 
insurance records of current employees and annuitants will be migrated 
into the new system in a series of waves. More information about the 
phased implementation of the RSM system will be posted at http://www.opm.gov/rsm/index.asp
 as it becomes available.


What RSM Means for Employees and Annuitants

    As discussed earlier, employees and annuitants will have greater 
access to their retirement and insurance information under RSM, as well 
as access to web-based tools that will provide improved customer 
service and allow for enhanced retirement and insurance benefits 
counseling. Unless explicitly provided for in these regulations, there 
is no intention to make substantive changes in provisions governing 
eligibility for retirement or formulas for computing annuities. 
However, the initiative's greater ability to capture and use more 
detailed information will permit more precise and accurate calculation 
of some aspects

[[Page 46179]]

of annuities and insurance than the less precise calculations possible 
under existing procedures, as in the case of data elements that will 
now be available on a pay-period or daily basis rather than an annual 
basis. Accordingly, RSM will provide the most accurate computation 
possible.

Subpart A--General Provisions

    Subpart A of the proposed part 850 includes general provisions 
governing the RSM initiative, including the purpose and scope of the 
initiative, definitions of terms used in the new part 850, a 
description of the applicability of its provisions, and authority for 
the Director of OPM to issue implementing directives prescribing more 
specific procedures for RSM processes. As noted earlier, the detailed 
procedures by which the system will operate will continue to evolve 
both as the February 2008 implementation date approaches and after that 
date. These procedures will be at a level of detail that makes them 
inappropriate for inclusion in the Code of Federal Regulations. 
Therefore, Sec.  850.104 of the proposed regulations provides the OPM 
Director with authority to prescribe detailed procedures to implement 
the mechanical processes of RSM. The Director's authority under this 
section is intended to affect only regulations governing process-
oriented requirements, such as requirements that applications, forms, 
or notices be in writing. Part 850 and the Director's implementing 
directives are not intended to alter any substantive rights of 
employees or annuitants. In addition, part 850 and the Director's 
implementing directives are not intended to supersede or alter any 
functions performed by a private insurance company or carrier with 
which OPM has entered into a contract, or with which OPM may enter into 
a contract in the future, under chapter 87 or 89 of title 5, United 
States Code, or any other statutory or regulatory provision.

Electronic Signatures

    The Government Paperwork Elimination Act (GPEA), Pub. L. 105-277, 
Title XVII, requires Federal agencies to allow individuals or entities 
that deal with agencies the option to submit information or transact 
with the agency electronically, when practicable, and to maintain 
records electronically, when practicable. The Act specifically states 
that electronic records and their related electronic signatures are not 
to be denied legal effect, validity, or enforceability merely because 
they are in electronic form, and encourages Federal government use of a 
range of electronic signature alternatives. The Act also gives OMB the 
authority to issue procedures for the use and acceptance of electronic 
signatures by Federal agencies. OMB published final procedures and 
guidance for implementing the GPEA in OMB Memorandum M-00-10, 65 FR 
25508 (May 2, 2000). OMB Memorandum M-00-10 states that an agency 
should perform an assessment of the sensitivity of a particular 
transaction and available electronic signature technologies before it 
implements electronic signature capabilities for the transaction. This 
assessment must include a risk analysis and a cost-benefit analysis 
concerning the use of a particular electronic signature technology for 
a transaction.
    Subpart A includes provisions allowing electronic communications 
and electronic signatures to be accepted in lieu of currently-required 
paper documents and written signatures. Section 850.106 incorporates 
provisions of the GPEA concerning the acceptability of electronic 
signatures and descriptions of current electronic signature technology 
set out in OMB Memorandum M-00-10. However, the electronic retirement 
and insurance processing system developed by RSM will not have the 
capability to process all of the electronic signature technologies 
described in the regulations when the system begins to operate. Section 
850.106(c) provides that the Director of OPM must issue directives 
under Sec.  850.104 that identify the acceptable methods of effecting 
electronic signatures, from among the electronic signature technologies 
that the electronic retirement and insurance processing system will be 
capable of processing, for particular electronic communications. For 
example, to permit an employee to apply for retirement through the 
submission of an electronic retirement application on an Internet Web 
site accessed with a personal identification number or password, the 
Director would have to issue an implementing directive allowing an 
electronic retirement application to be submitted by this method. 
Through the issuance of implementing directives prescribed under Sec.  
850.104, the Director could authorize the electronic retirement and 
insurance processing system to accept various forms of electronic 
signatures including, signatures created by personal identification 
numbers (PINs) or passwords, smart cards, digitized signatures, 
biometrics (e.g., fingerprints, retinal patterns, voice recognition), 
or cryptographic methods such as shared symmetric key cryptography, or 
public/private key (asymmetric) cryptography, also known as digital 
signatures. These are simply examples of electronic signatures that the 
Director of OPM would have the discretion to accept, but would not be 
required to accept, in prescribing implementing directives.
    Proposed Sec.  850.103 provides definitions for these and other 
terms. For example, ``digitized signature'' is defined as a graphic 
image of a handwritten signature containing unique biometric data 
associated with the creation of each stroke of the signature. A 
digitized signature can be verified by comparing it with the 
characteristics and biometric data of a known or exemplar signature 
image.
    ``Personal identification number'' (PIN) or ``password'' is defined 
as a non-cryptographic method of authenticating the identity of a user 
of an electronic application. To authenticate a user's identity with 
this method, a user accessing an electronic application is asked to 
enter his or her name, or other user identifier, and a password or PIN. 
The password or PIN is known both to the user and to the electronic 
system, but to no one else. The system checks the individual's password 
or PIN against data in a database to ensure correctness and thereby 
authenticates the user.
    ``Public/private key (asymmetric) cryptography'' is a method of 
creating a unique mark, known as the digital signature, on an 
electronic document or file. It uses two computer-generated, 
mathematically-linked keys: a private signing key known only to the 
user and the electronic system and a public key used to validate the 
fact that the digital signature was generated with the associated 
private key.
    ``Shared symmetric key cryptography'' is a method of authentication 
in which a single (private) key, known only to the user and the 
recipient of the electronic document, is used to sign and verify an 
electronic document.
    ``Smart card'' is defined as a plastic card, resembling a credit 
card, containing an embedded integrated circuit or ``chip'' that can 
generate, store, or process data. A smart card can be used to 
facilitate various authentication technologies that can also be 
embedded on the same card. Information from the card's chip is provided 
to a computer, which can accept the card only when the user also enters 
a PIN, password, or biometric identifier recognized by the card.
    The implementing directives prescribed by the Director under Sec.  
850.104 also could specify how a

[[Page 46180]]

signature may be notarized electronically, where there is a requirement 
for a notarized signature. Section 850.106(a)(4), consistent with 
section 101(g) of the Electronic Signatures in Global and National 
Commerce Act of 2000 (Pub. L. 106-229), provides that the Director 
could accept an electronic signature as properly notarized if the 
signature is attached to or logically associated with all other 
information and records required to be included by the applicable 
statute or regulation.

Subpart B--Applications for Benefits; Elections

    Subpart B of the proposed regulations deals with applications and 
notices for CSRS, FERS, FEGLI, FEHB and RFEHB benefits under the RSM 
initiative and elections associated with the processing of those 
benefits. It allows applications, forms, notices, elections, and other 
related submissions, which otherwise would be required to be made in 
writing, to be submitted in whatever form the Director of OPM 
prescribes, including electronically. It also allows all such 
submissions to be made to OPM through the RSM electronic processing 
system, regardless of any other requirement for certain individuals to 
submit certain documents to their employing agencies or OPM. Subpart B 
also stipulates that, for cases processed under the RSM system, data 
provided to the RSM electronic processing system under subpart C will 
be the basis on which claims for CSRS, and FERS retirement benefits 
will be adjudicated, and will support the administration of FEGLI, FEHB 
and RFEHB coverage for annuitants. Subpart B provides a deadline of 35 
days after the date of the notice to the retiring employee of the 
amount of his or her annuity within which he or she can change a 
survivor election. This deadline replaces provisions in current 
regulations that link the timeframe for changing survivor elections to 
the date of the ``first regular monthly payment'' or ``final 
adjudication.'' Subpart B also provides that any deadline for making 
any other election that is described in reference to the first regular 
monthly payment or the date of final adjudication is deemed to be 35 
days after the date of the notice to the retiring employee of the 
amount of annuity to which he or she is entitled. This provision is 
necessary because the terms ``first regular monthly payment'' and 
``final adjudication'' can no longer be applied in the way they used to 
be applied in a paper-based environment; therefore, they will lose 
their meaning in the RSM context.

Subpart C--Records

    Subpart C describes electronic records that are acceptable for 
processing by the RSM system. These include electronic data submitted 
through the Enterprise Human Resources Integration (EHRI) system and 
data from electronic Official Personnel Folders (e-OPFs), as well as 
paper documents that have been converted to digital form by image 
scanning or other means. Paper documents that have not been converted 
to electronic or digital form will continue to be acceptable records 
for processing under RSM. Federal agencies and other entities employing 
individuals covered by CSRS or FERS continue to be responsible for the 
initiation and proper maintenance of employment, retirement, and 
insurance records, as well as for correcting errors in data provided to 
OPM.

Subpart D--Submission of Law Enforcement, Firefighter, and Nuclear 
Materials Courier Retirement Coverage Notices

    Subpart D concerns the submission of notices of coverage under the 
CSRS and FERS special retirement provisions for law enforcement 
officers, firefighters, and nuclear materials couriers. Such notices of 
coverage must be submitted electronically through EHRI to the RSM 
processing system. The notice must include the position description 
number for the position for which special retirement coverage has been 
approved.

E.O. 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because the regulation 
will affect only Federal employees, former Federal employees, Members 
of Congress, annuitants, survivors, and applicants under the Civil 
Service Retirement System and the Federal Employees' Retirement System 
whose retirement and insurance records are maintained by the new 
retirement processing system created by OPM's Retirement Systems 
Modernization (RSM) initiative.

List of Subjects in 5 CFR Part 850

    Administrative practice and procedure, Air traffic controllers, 
Alimony, Claims, Disability benefits, Firefighters, Government 
employees, Income taxes, Intergovernmental relations, Law enforcement 
officers, Pensions, Reporting and recordkeeping requirements, 
Retirement.

Office of Personnel Management.
Linda M. Springer,
Director.
    Accordingly, the Office of Personnel Management is proposing to 
amend title 5, Code of Federal Regulations, by establishing a new part 
850 as follows:

PART 850--RETIREMENT SYSTEMS MODERNIZATION

Subpart A--General Provisions
Sec.
850.101 Purpose and scope.
850.102 Applicability.
850.103 Definitions.
850.104 Implementing directives.
850.105 Agency responsibility.
850.106 Electronic signatures.
Subpart B--Applications for Benefits; Elections
850.201 Applications for benefits.
850.202 Survivor elections.
850.203 Other elections.
Subpart C--Records
850.301 Electronic records; other acceptable records.
850.302 Record maintenance.
850.303 Return of personal documents.
Subpart D--Submission of Law Enforcement, Firefighter, and Nuclear 
Materials Courier Retirement Coverage Notices
850.401 Electronic notice of coverage determination.

    Authority: 5 U.S.C. 8347; 5 U.S.C. 8461; 5 U.S.C. 8716; 5 U.S.C. 
8913; section 9 of Pub. L. 86-724, 74 Stat. 849, 851-52 (September 
8, 1960) as amended by section 102 of Reorganization Plan No. 2 of 
1978, 92 Stat. 3781, 3783 (February 23, 1978).

Subpart A--General Provisions


Sec.  850.101  Purpose and scope.

    (a) The purpose of this part is to enable changes needed for 
implementation of the new retirement and insurance processing system 
created by the Office of Personnel Management (OPM)'s Retirement 
Systems Modernization (RSM) initiative. RSM is OPM's strategic 
initiative to improve the quality and timeliness of services to 
employees and annuitants covered by the Civil Service Retirement System 
(CSRS) and the Federal Employees' Retirement System (FERS) by using 
contemporary, automated business processes and supporting technology. 
The RSM program is designed to transform the retirement process, as 
well as the processing of annuitant insurance elections of FEGLI, FEHB 
and RFEHB coverage, by employing more efficient and effective business 
systems to

[[Page 46181]]

respond to increased customer demand for higher levels of customer 
service and online self-service tools.
    (b) The provisions of this part authorize exceptions from 
regulatory provisions that would otherwise apply to CSRS and FERS 
annuities and FEGLI, FEHB and RFEHB benefits processed by or at the 
direction of OPM under the RSM initiative. Those regulatory provisions 
that would otherwise apply were established for a paper-based 
retirement and insurance benefits processing system that will 
eventually be phased out but which will continue to operate 
concurrently with RSM for some time, until RSM is fully implemented. 
During the phased transition to RSM processing, certain regulations 
that were not designed with RSM in mind, and which are incompatible 
with RSM business processes, must be set aside with respect to aspects 
of retirement and insurance processing accomplished under RSM. The 
regulations set forth in this part make the transition to RSM processes 
possible.
    (c) The provisions of this part do not affect retirement and 
insurance eligibility and annuity computation provisions. The 
provisions for capturing retirement and insurance data in an electronic 
format, however, may support, in some instances, more precise 
calculations of annuity and insurance benefits than were possible using 
paper records.


Sec.  850.102  Applicability.

    (a) The provisions of parts 831, 835, 837 through 839, 841 through 
847, 870, 890, and 891 of this chapter remain in effect, as applicable, 
except to the extent that they are inconsistent with one or more 
provisions of this part or implementing directives prescribed by the 
Director under Sec.  850.104 of this part.
    (b) The provisions of this part do not supersede or alter any 
functions performed by a private insurance company or carrier with 
which OPM has entered into a contract, or with which OPM may enter into 
a contract in the future, under chapter 87 or 89 of title 5, United 
States Code, or under any other provision of law or regulation.


Sec.  850.103  Definitions.

    In this part--
    Biometrics refers to the technology that converts a unique 
characteristic of an individual into a digital form, which is then 
interpreted by a computer and compared with a digital exemplar copy of 
the characteristic stored in the computer. Among the unique 
characteristics of an individual that can be converted into a digital 
form are voice patterns, fingerprints, and the blood vessel patterns 
present on the retina of one or both eyes.
    Cryptographic control method means an approach to authenticating 
identity or the authenticity of an electronic document through the use 
of a cipher (i.e., a pair of algorithms) which performs encryption and 
decryption.
    CSRS means the Civil Service Retirement System established under 
subchapter III of chapter 83 of title 5, United States Code.
    Digital signature is an electronic signature generated by means of 
an algorithm that ensures that the identity of the signatory and the 
integrity of the data can be verified. A value, referred to as the 
``private key,'' is generated to produce the signature, and another 
value, known as the ``public key,'' which is linked to, but not the 
same as, the private key, is used to verify the signature.
    Digitized signature means a graphical image of a handwritten 
signature, usually created using a special computer input device, such 
as a digital pen and pad, which contains unique biometric data 
associated with the creation of each stroke of the signature, such as 
duration of stroke or pen pressure. A digitized signature can be 
verified by a comparison with the characteristics and biometric data of 
a known or exemplar signature image.
    Director means the Director of the Office of Personnel Management.
    Electronic communication refers to any information conveyed through 
electronic means and includes electronic forms, applications, 
elections, and requests submitted by e-mail or any other electronic 
message.
    Electronic Official Personnel Record Folder (e-OPF) means the 
electronic Official Personnel Folder application that will replace the 
current paper personnel folder across the Government.
    Electronic retirement and insurance processing system means the new 
retirement and insurance processing system created by OPM's Retirement 
Systems Modernization (RSM) initiative.
    Employee means an individual, other than a Member of Congress, who 
is covered by CSRS or FERS.
    Enterprise Human Resources Integration (EHRI) means the 
comprehensive electronic personnel record-keeping and analysis system 
that supports human resources management across the Federal Government.
    FEGLI means the Federal Employees' Group Life Insurance Program 
established under chapter 87 of title 5, United States Code.
    FEHB means the Federal Employees Health Benefits Program 
established under chapter 89 of title 5, United States Code.
    FERS means the Federal Employees' Retirement System established 
under chapter 84 of title 5, United States Code.
    Member means a Member of Congress defined by section 2106 of title 
5, United States Code, who is covered by CSRS or FERS.
    Non-cryptographic method is an approach to authenticating identity 
that relies solely on an identification and authentication mechanism 
that must be linked to a specific software platform for each 
application.
    Personal identification number (PIN) or password means a non-
cryptographic method of authenticating the identity of a user of an 
electronic application, involving the use of an identifier known only 
to the user and to the electronic system, which checks the identifier 
against data in a database to authenticate the user's identity.
    Public/private key (asymmetric) cryptography is a method of 
creating a unique mark, known as a digital signature, on an electronic 
document or file. This method involves the use of two computer-
generated, mathematically-linked keys: a private signing key that is 
kept private and a public validation key that is available to the 
public.
    RFEHB means the Retired Federal Employees Health Benefits Program 
established under Pub. L. 86-724, 74 Stat. 849, 851-52 (September 8, 
1960) as amended.
    Shared service centers are processing centers delivering a broad 
array of administrative services to multiple agencies.
    Shared symmetric key cryptography means a method of authentication 
in which a single key is used to sign and verify an electronic 
document. The single key (also known as a ``private key'') is known 
only by the user and the recipient or recipients of the electronic 
document.
    Smart card means a plastic card, typically the size of a credit 
card, containing an embedded integrated circuit or ``chip'' that can 
generate, store, or process data. A smart card can be used to 
facilitate various authentication technologies that may be embedded on 
the same card.


Sec.  850.104  Implementing directives.

    The Director must prescribe, in the form he or she deems 
appropriate, such detailed procedures as the Director determines to be 
necessary to carry out the purpose of this part.

[[Page 46182]]

Sec.  850.105  Agency responsibility.

    Agencies employing individuals whose retirement records or 
processing are affected by this part are responsible for counseling 
those individuals regarding their rights and benefits under CSRS, FERS, 
FEGLI, FEHB, or RFEHB.


Sec.  850.106  Electronic signatures.

    (a) Subject to any provisions prescribed by the Director under 
Sec.  850.104--
    (1) An electronic communication may be deemed to satisfy any 
statutory or regulatory requirement under CSRS, FERS, FEGLI, FEHB or 
RFEHB for a written election, notice, application, consent, request, or 
specific form format;
    (2) An electronic signature of an electronic communication may be 
deemed to satisfy any statutory or regulatory requirement under CSRS, 
FERS, FEGLI, FEHB or RFEHB that an individual submit a signed writing 
to OPM;
    (3) An electronic signature of a witness to an electronic signature 
may be deemed to satisfy any statutory or regulatory requirement under 
CSRS, FERS, FEGLI, FEHB or RFEHB for a signature to be witnessed; and
    (4) Any statutory or regulatory requirement under CSRS, FERS, 
FEGLI, FEHB or RFEHB that a signature be notarized may be satisfied if 
the electronic signature of the person authorized to sign is attached 
to or logically associated with all other information and records 
required to be included by the applicable statute or regulation.
    (b) For purposes of this section, an electronic signature is a 
method of signing an electronic communication, including an 
application, claim, or notice, designation of beneficiary, or 
assignment that--
    (1) Identifies and authenticates a particular person as the source 
of the electronic communication; and
    (2) Indicates such person's approval of the information contained 
in the electronic communication.
    (c) The Director will issue directives under Sec.  850.104 of this 
part that identify the acceptable methods of effecting electronic 
signatures for particular purposes under this part. Acceptable methods 
of creating an electronic signature may include--
    (1) Non-cryptographic methods, including--
    (i) Personal Identification Number (PIN) or password;
    (ii) Smart card;
    (iii) Digitized signature; or
    (iv) Biometrics, such as fingerprints, retinal patterns, and voice 
recognition;
    (2) Cryptographic control methods, including--
    (i) Shared symmetric key cryptography;
    (ii) Public/private key (asymmetric) cryptography, also known as 
digital signatures;
    (3) Any combination of methods described in paragraphs (1) and (2); 
or
    (4) Such other means as the Director may find appropriate.

Subpart B--Applications for Benefits; Elections


Sec.  850.201  Applications for benefits.

    (a)(1) Applications and related submissions that otherwise would be 
required by this chapter to be made in writing may instead be submitted 
in such form as the Director prescribes under Sec.  850.104 of this 
part.
    (2) Subject to any directives prescribed by the Director under 
Sec.  850.104 of this part, applications and related submissions that 
are otherwise required to be made to an individual's employing agency 
(other than by statute) may instead be submitted to the electronic 
retirement and insurance processing system or to OPM.
    (b) Data provided under subpart C are the basis for adjudicating 
claims for CSRS and FERS retirement benefits, and will support the 
administration of FEGLI, FEHB and RFEHB coverage for annuitants, under 
this part.
    (c) For the purposes of this subpart, ``OPM notice'' means the 
notice informing the retiree or other individual of the annuity 
computation rate and of the elections made by the retiree or other such 
individual eligible to make such an election and informing him or her 
of the time limit under Sec.  850.202 or Sec.  850.203 for any 
election, revocation or change of election.


Sec.  850.202  Survivor elections.

    (a) A survivor election under subsection (j) or (k) of section 
8339, or under section 8416, 8417, or 8420 of title 5, United States 
Code, which is otherwise required to be in writing may be effected in 
such form as the Director prescribes under Sec.  850.104.
    (b)(1) Except as provided in Sec. Sec.  831.622(b)(1), 831.631, 
831.632, 842.610(b)(1), 842.611, and 842.612, an individual making a 
survivor election at the time of retirement may not revoke or change 
that election later than 35 days after the date of the OPM notice to 
the individual of the amount of annuity to which he or she is entitled.
    (2) A retiree may change a survivor election under Sec.  
831.622(b)(1) or Sec.  841.610(b)(1) no later than 18 months after the 
commencing date of the annuity to which he or she is entitled.


Sec.  850.203  Other elections.

    (a) Any other election may be effected in such form as the Director 
prescribes under Sec.  850.104. Such elections include but are not 
limited to--
    (1) Elections of coverage under CSRS, FERS, FEGLI, FEHB or RFEHB by 
individuals entitled to elect such coverage;
    (2) Applications for service credit and applications to make 
deposit; and
    (3) Elections regarding the withholding of State income tax from 
annuity payments.
    (b) Any election, which, if it were not processed under this part, 
would have a deadline described in reference to the first regular 
monthly payment or the date of final adjudication, may not be made 
later than 35 days after the date of the OPM notice to the individual 
concerned of the amount of annuity to which he or she is entitled.

Subpart C--Records


Sec.  850.301  Electronic records; other acceptable records.

    (a) Acceptable electronic records for processing by the electronic 
retirement and insurance processing system include--
    (1) Electronic employee data submitted by an agency or other entity 
through EHRI and stored within the new retirement and insurance 
processing system;
    (2) Electronic Official Personnel Folder (e-OPF) data; and
    (3) Documents, including hardcopy versions of the Individual 
Retirement Record (SF 2806 or SF 3100), or data obtained from such 
documents, that are converted to an electronic or digital form by means 
of image scanning or other forms of electronic or digital conversion.
    (b) Documents that are not converted to an electronic or digital 
form will continue to be acceptable records for processing by the 
retirement and insurance processing system.
    (c) OPM is not required to retain documents after they have been 
converted to electronic records.


Sec.  850.302  Record maintenance.

    (a) The retirement and insurance processing system does not affect 
the responsibilities of every Federal department, agency, corporation 
or branch, and the District of Columbia government (included 
collectively in this part in the term department or agency) having 
employees or Members of Congress subject to subchapter III of chapter 
83 or chapter 84 of title 5, United States Code, for the initiation and 
maintenance of records, evidence,

[[Page 46183]]

or other information described in this title.
    (b) Agencies are responsible for correcting errors in data provided 
to OPM under Sec.  850.301.


Sec.  850.303  Return of personal documents.

    An individual who submits personal documents to OPM in support of a 
claim for retirement or insurance benefits may have such documents 
returned to the individual if he or she requests the return of the 
documents when submitting the documents. If OPM receives a request for 
return of such documents at a later time, OPM may provide the 
individual with a copy of the document that is derived from electronic 
records.

Subpart D--Submission of Law Enforcement, Firefighter, and Nuclear 
Materials Courier Retirement Coverage Notices


Sec.  850.401  Electronic notice of coverage determination.

    (a) An agency or other entity that submits electronic employee 
records directly or through a shared service center to the electronic 
retirement and insurance processing system must electronically submit 
the notice of law enforcement officer, firefighter, or nuclear 
materials retirement coverage required by Sec.  831.811(a), 831.911(a), 
842.808(a), or 842.910(a) of this title through EHRI to the electronic 
retirement and insurance processing system.
    (b) The electronic notice required by paragraph (a) must include 
the position description number of the position for which law 
enforcement officer, firefighter, or nuclear materials courier 
retirement coverage has been approved.
    (c) An agency or other entity submitting an electronic notice 
required by paragraph (a) must electronically submit the coverage 
determination and background file required to be maintained by Sec.  
831.811(b), 831.911(b), 842.808(b), or 842.910(b) to the electronic 
retirement and insurance processing system for each position included 
in the notice.

[FR Doc. E7-16256 Filed 8-16-07; 8:45 am]

BILLING CODE 6325-38-P