[Code of Federal Regulations]
[Title 5, Volume 2, Parts 700 to 1199]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR847.602]

[Page 362]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 847--ELECTIONS OF RETIREMENT COVERAGE BY CURRENT AND FORMER EMPLOYEES OF NONAPPROPRIATED FUND INSTRUMENTALITIES--Table of Contents
 
  Subpart F--Additional Employee Costs Under the Retroactive Provisions
 
Sec. 847.602  Present value factors.

    (a) OPM publishes the following tables (available at personnel and 
payroll offices):
    (1) One table of present value factors for all CSRS annuities;
    (2) One table of present value factors for FERS annuities that do 
not receive cost-of-living adjustments before the retiree attains age 
62; and
    (3) One table of present value factors for FERS annuities that 
receives cost-of-living adjustments before the retiree attains age 62.
    (b)(1) Each present value factor will equal the amount of money 
(earning interest at an assumed rate) required at the date of 
computation to fund an annuity that starts out at the rate of $1 a month 
and is payable in monthly installments for the annuitant's lifetime 
based on mortality rates for annuitants paid from the Fund; and 
increases each year, assuming a certain rate of inflation.
    (2) Interest, mortality, and inflation rates used in computing the 
present value are those used by the Board of Actuaries of the Civil 
Service Retirement System for valuation of CSRS and FERS, based on 
dynamic assumptions.
    (3) The present value factors are unisex factors obtained by 
averaging distinct present value factors, which take into account 
mortality for retirees and survivors under CSRS and FERS.
    (c)(1) When OPM publishes in the Federal Register notice of normal 
cost percentages under Sec. 841.407 of this chapter, it will also 
publish the CSRS and FERS tables of present value factors for use for 
this part.
    (2) The present value factors will be based on the assumptions used 
to compute the normal cost percentages.
    (3) Changes in the tables of present value factors will be effective 
on the first day of the month in which the changes in the normal cost 
percentages become effective.