[Federal Register Volume 75, Number 118 (Monday, June 21, 2010)]
[Notices]
[Pages 35093-35095]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-14832]
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OFFICE OF PERSONNEL MANAGEMENT
Civil Service Retirement System; Present Value Factors
AGENCY: Office of Personnel Management.
ACTION: Notice.
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SUMMARY: The Office of Personnel Management (OPM) is providing notice
of adjusted present value factors applicable to retirees under the
Civil Service Retirement System (CSRS) 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, owe
certain redeposits based on refunds of contributions for service before
October 1, 1990, or elect to credit certain service with
nonappropriated fund instrumentalities.
[[Page 35094]]
This notice is necessary to conform the present value factors to
changes in demographic factors adopted by the Board of Actuaries of the
Civil Service Retirement System.
DATES: Effective Date: The revised present value factors apply to
survivor reductions or employee annuities that commence on or after
October 1, 2010.
ADDRESSES: Send requests for actuarial assumptions and data to the
Board of Actuaries, care of Gregory Kissel, Actuary, Office of Planning
and Policy Analysis, Office of Personnel Management, Room 4307, 1900 E
Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Kristine Prentice, (202) 606-0299.
SUPPLEMENTARY INFORMATION: Several provisions of CSRS 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 831.2205(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. 8343a. 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
section 831.2205(a) of title 5, Code of Federal Regulations.
Section 831.303(c) of title 5, Code of Federal Regulations,
prescribes the use of these factors for computing the reduction to
complete payment of certain redeposits of refunded deductions based on
periods of service that ended before October 1, 1990, under section
8334(d)(2) of title 5, United States Code.
Section 831.663 of title 5, Code of Federal Regulations, prescribes
the use of similar factors for computing the reduction required for
certain elections to provide survivor annuity benefits based on a post-
retirement marriage under section 8339(j)(5)(C) or (k)(2) of title 5,
United States Code. 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. The reduction is based on actuarial tables,
similar to those used for alternative forms of annuity under section
8343a of title 5, United States Code.
Subpart F of part 847 of title 5, Code of Federal Regulations,
prescribes the use of similar 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.
The present value factors currently in effect were published by OPM
(72 FR 31628) on June 7, 2007. Elsewhere in today's Federal Register,
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 demographic factors adopted by the Board of
Actuaries of the CSRS. Those changes require corresponding changes in
CSRS normal costs and present value factors used to produce actuarially
equivalent benefits when required by the Civil Service Retirement Act.
The revised factors will become effective on October 1, 2010, to
correspond with the changes in CSRS normal cost percentages. For
alternative forms of annuity and redeposits of employee contributions,
the new factors will apply to annuities that commence on or after
October 1, 2010. See 5 CFR 831.2205 and 831.303(c). For survivor
election deposits, the new factors will apply to survivor reductions
that commence on or after October 1, 2010. See 5 CFR 831.663(c) and
(d). For obtaining credit for service with certain nonappropriated fund
instrumentalities, the new factors will apply to cases in which the
date of computation under section 847.603 of title 5, Code of Federal
Regulations, is on or after October 1, 2010. See 5 CFR 847.602(c) and
847.603.
OPM is, therefore, revising the tables of present value factors to
read as follows:
CSRS Present Value Factors Applicable to Annuity Payable Following an
Election Under Section 8339(j) or (k) or Section 8343a of Title 5,
United States Code, or Under Section 1043 of Public Law 104-106 or
Following a Redeposit Under Section 8334(d)(2) of Title 5, United States
Code
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Present value
Age factor
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40...................................................... 290.4
41...................................................... 288.1
42...................................................... 285.4
43...................................................... 282.1
44...................................................... 278.3
45...................................................... 274.2
46...................................................... 270.1
47...................................................... 266.0
48...................................................... 262.0
49...................................................... 257.6
50...................................................... 253.1
51...................................................... 248.9
52...................................................... 244.7
53...................................................... 240.2
54...................................................... 235.3
55...................................................... 230.4
56...................................................... 225.3
57...................................................... 220.1
58...................................................... 214.9
59...................................................... 209.7
60...................................................... 204.3
61...................................................... 198.9
62...................................................... 193.2
63...................................................... 187.5
64...................................................... 181.8
65...................................................... 176.0
66...................................................... 170.2
67...................................................... 164.4
68...................................................... 158.7
69...................................................... 152.9
70...................................................... 147.2
71...................................................... 141.4
72...................................................... 135.5
73...................................................... 129.5
74...................................................... 123.7
75...................................................... 118.0
76...................................................... 112.3
77...................................................... 106.8
78...................................................... 101.0
79...................................................... 95.3
80...................................................... 89.9
81...................................................... 84.4
82...................................................... 78.9
83...................................................... 73.7
84...................................................... 69.4
85...................................................... 64.6
86...................................................... 59.4
87...................................................... 54.6
88...................................................... 50.9
89...................................................... 47.7
90...................................................... 44.1
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[[Page 35095]]
CSRS Present Value Factors Applicable to Annuity Payable Following an
Election Under Section 1043 of Public Law 104-106 (For Ages at
Calculation Below 40)
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Present value
Age at calculation of a monthly
annuity
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17...................................................... 338.2
18...................................................... 336.7
19...................................................... 335.0
20...................................................... 333.4
21...................................................... 331.7
22...................................................... 329.9
23...................................................... 328.1
24...................................................... 326.2
25...................................................... 324.3
26...................................................... 322.3
27...................................................... 320.3
28...................................................... 318.1
29...................................................... 316.0
30...................................................... 313.7
31...................................................... 311.5
32...................................................... 309.1
33...................................................... 306.6
34...................................................... 304.1
35...................................................... 301.4
36...................................................... 298.7
37...................................................... 296.0
38...................................................... 293.2
39...................................................... 291.2
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U.S. Office of Personnel Management.
John Berry,
Director.
[FR Doc. 2010-14832 Filed 6-18-10; 8:45 am]
BILLING CODE 6325-39-P