[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: 5CFR870.401]

[Page 373-374]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM--Table of Contents
 
                      Subpart D--Cost of Insurance
 
Sec. 870.401  Withholdings and contributions for Basic insurance.


    (a) The cost of Basic insurance is shared between the insured 
individual and the Government. The employee pays two thirds of the cost, 
and the Government pays one-third.
    (b)(1) During each pay period in which an insured employee is in pay 
status for any part of the period, $0.1550 must be withheld from the 
employee's biweekly pay for each $1,000 of the employee's BIA. The 
amount withheld from the pay of an employee who is paid on other than a 
biweekly basis must be prorated and adjusted to the nearest one-tenth of 
one cent.
    (2) The amount withheld from the pay of an insured employee whose 
annual pay is paid during a period shorter than 52 work weeks is the 
amount obtained by converting the biweekly rate to an annual rate and 
prorating the annual rate over the number of installments of pay 
regularly paid during the year.
    (3) The amount withheld from the pay of an insured employee whose 
BIA changes during a pay period is based on the BIA in force at the end 
of the pay period.
    (c) For each pay period in which an employee is insured, the 
employing agency must contribute an amount equal to one-half the amount 
withheld from the employee's pay. This agency contribution must come 
from the appropriation or fund that is used for the payment of the 
employee's pay. For an elected official, the contribution must come from 
the appropriation or fund that is available for payment of other 
salaries in the same office.
    (d)(1) For an annuitant who elects to continue Basic insurance and 
chooses the maximum reduction of 75 percent after age 65, under 
Sec. 870.702(a)(2), the amount withheld monthly is $0.3358 for each 
$1,000 of the BIA. For a compensationer who makes this election, the 
amount withheld weekly is $0.0775 for each $1,000. These withholdings 
stop the month after the month in which the annuitant reaches age 65. 
There are no withholdings from individuals who retired or began 
receiving compensation before January 1, 1990, and who elected the 75 
percent reduction. For the purpose of this paragraph, an individual who 
separates from service after meeting the requirements for an immediate 
annuity under 5 U.S.C. 8412(g) is considered to retire on the day before 
the annuity begins.
    (2) For an annuitant who elects to continue Basic insurance and 
chooses the maximum reduction of 50 percent after age 65 under 
Sec. 870.702(a)(3), the amount withheld monthly is $0.9258 for each 
$1,000 of the BIA until the month after the month in which the annuitant 
reaches age 65; the amount is then reduced to $0.59 for each $1,000. For 
a compensationer who makes this election, the amount withheld weekly is 
$0.2175 for each $1,000 of the BIA until age 65; the amount is then 
reduced to $0.14 for each $1,000.
    (3) For an annuitant who elects to continue Basic insurance and 
chooses no reduction after age 65 under Sec. 870.702(a)(4), the amount 
withheld monthly is $2.3758 for each $1,000 of the BIA until the month 
after the month in which the annuitant reaches age 65; the amount is 
then reduced to $2.04 for each $1,000. For a compensationer who makes 
this election, the amount withheld weekly is $0.5475 for each $1,000 of 
the BIA until age 65; the amount is then reduced to $0.47 for each 
$1,000.
    (e)(1) For each period in which an annuitant or compensationer is 
insured, OPM must contribute an amount equal to one-half the amount that 
would be withheld under paragraph (d)(1) of this section. Exception: for 
USPS employees who become annuitants or compensationers after December 
31, 1989, the Postal Service pays the Government contributions.
    (2) The Government contribution is the same amount whether the 
individual elects a maximum 75 percent reduction, a maximum 50 percent 
reduction, or no reduction.
    (3) The Government contribution stops the month after the month in 
which the individual reaches age 65.
    (f) When an agency withholds less than or none of the proper amount 
of Basic life insurance deductions from an

[[Page 374]]

individual's pay, annuity, or compensation, the agency must submit an 
amount equal to the sum of the uncollected deduction and any applicable 
agency contributions required under 5 U.S.C. 8708 to OPM for deposit in 
the Employees' Life Insurance Fund.

[62 FR 48731, Sept. 17, 1997, as amended at 64 FR 22544, Apr. 27, 1999]