[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: 5CFR870.402]

[Page 391-392]
 
                    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. 870.402  Withholdings for Optional insurance.

    (a) The insured individual pays the full cost of all Optional 
insurance. There is no Government contribution toward the cost of any 
Optional insurance.
    (b) During each pay period in any part of which an insured employee 
is in pay status, the employing agency must withhold the full cost of 
Optional insurance from his/her pay.
    (c)(1) Subject to the provisions for reemployed annuitants in 
Sec. 870.707, the full cost of Optional insurance must be withheld from 
the annuity of an annuitant and from the compensation of a 
compensationer.
    (2) The withholdings for Option A stop the month after the month in 
which an annuitant or compensationer reaches age 65.
    (3) For an annuitant or compensationer who elects Full Reduction for 
any Option B or Option C multiples, the withholdings for those multiples 
stop the month after the month in which he/she reaches age 65.
    (4) For an annuitant or compensationer who elects No Reduction for 
any Option B or Option C multiples, the withholdings for those multiples 
continue, as long as he/she remains insured.
    (d)(1) The biweekly cost per $10,000 of Option A coverage is:





For persons under age 35.......................................    $0.30
For persons ages 35 through 39.................................      .40
For persons ages 40 through 44.................................      .60
For persons ages 45 through 49.................................      .90
For persons ages 50 through 54.................................     1.40
For persons ages 55 through 59.................................     2.70
For persons ages 60 and over...................................     6.00


    (2) The amount withheld from pay, annuity, or compensation paid on 
other than a biweekly basis must be prorated and adjusted to the nearest 
cent.
    (e)(1) The biweekly cost per $1,000 of Option B coverage is:





For persons under age 35.......................................    $0.03
For persons ages 35 through 39.................................      .04
For persons ages 40 through 44.................................      .06
For persons ages 45 through 49.................................      .10
For persons ages 50 through 54.................................      .15
For persons ages 55 through 59.................................      .31
For persons ages 60 and over...................................      .70


    (2) The amount withheld from pay, annuity, or compensation paid on 
other than a biweekly basis must be prorated and adjusted to the nearest 
one-tenth of 1 cent.
    (f)(1) The biweekly cost of Option C for one multiple of coverage is 
based on the age of the employee, annuitant, or compensationer. Table 1 
shows the age bands and associated cost up through age 59, effective the 
first day of the pay period beginning on or after April 24, 1999. The 
age bands 60-64, 65-69 and 70 and over, the applicable premium rates, 
and effective dates are shown in Table 2.

                                 Table 1
------------------------------------------------------------------------

------------------------------------------------------------------------
For persons under age 35.......................................    $0.27
For persons ages 35 through 39.................................      .34
For persons ages 40 through 44.................................      .46
For persons ages 45 through 49.................................      .60
For persons ages 50 through 54.................................      .90
For persons ages 55 through 59.................................     1.45
------------------------------------------------------------------------


                         Table 2--Effective Date
------------------------------------------------------------------------
         First pay period on or after             4/24/99     4/24/2000
------------------------------------------------------------------------
For persons ages 60 through 64................         2.60         2.60
For persons ages 65 through 69................         2.60         3.00
For persons ages 70 and over..................         2.60         3.40
------------------------------------------------------------------------

    (2) The amount withheld from pay, annuity, or compensation paid on 
other than a biweekly basis must be prorated and adjusted to the nearest 
cent.

[[Page 392]]

    (g) For the purpose of this subpart, effective April 24, 1999, an 
individual is considered to reach age 35, 40, 45, 50, 55, 60, 65, or 70 
on the first day of the pay period following the pay period in which 
his/her birthday occurs.
    (h) 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 for his/her age group to 
an annual rate and prorating the annual rate over the number of 
installments of pay regularly paid during the year.
    (i) When an agency withholds less than or none of the proper amount 
of Optional life insurance deductions from an individual's pay, annuity, 
or compensation, the agency must submit an amount equal to the 
uncollected deductions required under 5 U.S.C. 8714a, 8714b, and 8714c 
to OPM for deposit in the Employees' Life Insurance Fund.

[62 FR 48731, Sept. 17, 1997; 62 FR 52181, Oct. 6, 1997, as amended at 
64 FR 22544, Apr. 27, 1999; 64 FR 72462, Dec. 28, 1999]