[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR792.225]

[Page 71-72]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 792--FEDERAL EMPLOYEES' HEALTH AND COUNSELING PROGRAMS--Table of Contents
 
  Subpart B--Agency Use of Appropriated Funds for Child Care Costs for 
 Lower income Employees--What Is the New Child Care Legislation and to 
                           Whom Does It Apply?
 
Sec. 792.225  What is the definition of a lower income Federal employee and how is the amount of tuition assistance subsidy determined?

    Each agency makes the determination of the definition of lower 
income Federal employee. Lower income Federal employee can be defined by 
an agency in a number of ways. The process for determining both 
eligibility and the amount of tuition assistance subsidy for each family 
will usually involve consideration of total family income along with 
other factors such as total child care costs, depending on the tuition 
assistance model(s) you use. Agencies are not required to use one of the 
models that OPM suggests. If an agency uses a model OPM has suggested in 
its guidance, you may wish to change the threshold amounts, or 
percentages of total family income or other factors. In their guidance 
to this subpart, OPM will provide examples of models with detailed 
explanations. OPM's guidance on this subpart is a supplement to this 
subpart.

[[Page 72]]

    (a) If the model or models you select includes a total family income 
threshold, you can use criteria such as those from:
    (1) The Child Care Development Block Grant as defined (42 U.S.C. 
9858);
    (2) A formula based on a percentage of the State poverty level (as 
many States do for certain programs); or
    (3) A set amount of total family income the agency chooses depending 
on the agency demographics and need to assist lower income Federal 
employees.
    (b) Some models do not require a threshold amount, since eligibility 
is determined as a function of the relationship between total family 
income, actual child care tuition costs, and an amount or percentage the 
agency is willing to pay.
    (c) In order to determine the amount of tuition assistance subsidy 
by which tuition will be reduced for a Federal employee, a number of 
approaches can be taken. The size of the subsidy is dependent on 
different income levels. It can be based on a tuition sliding scale such 
as that used in the military formula (10 U.S.C. 1791-1798); a formula 
based on a specific percentage of total family income the family is 
expected to pay with the agency paying the remaining amount; or a 
formula based on a specific percentage of child care tuition the family 
is expected to pay with the agency paying the remaining amount. Each of 
these approaches is based on different philosophical assumptions and it 
will be up to the agency to determine which model or models best fits 
its needs. The models are described in detail in OPM's guidance.
    (d) Besides total family income, you may consider extraordinary 
financial situations to determine eligibility and the subsidy amount.