[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: 5CFR870.404]

[Page 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. 870.404  Withholdings and contributions provisions that apply to both Basic and Optional insurance.

    (a) Withholdings (and Government contributions, when applicable) are 
based on the amount of insurance in force at the end of the pay period.
    (b) Withholdings are not required for the period between the end of 
the pay period in which an employee separates from service and the date 
his/her annuity or compensation begins.
    (c) No payment is required while an insured employee is in nonpay 
status for up to 12 months. Exception: an employee who is in nonpay 
status while receiving compensation.
    (d) The deposit described in Secs. 870.401(f) and 870.402(i) must be 
made no later than 60 calendar days after the date the employing office 
determines the amount of the underdeduction that has occurred, 
regardless of whether or when the underdeduction is recovered by the 
agency. The agency must determine whether to waive collection of the 
overpayment of pay, in accordance with 5 U.S.C. 5584, as implemented by 
4 CFR chapter I, subchapter G. However, if the agency involved is 
excluded from the provisions of 5 U.S.C. 5584, it may use any applicable 
authority to waive the collection.
    (e) Effective October 21, 1972, when there is an official finding 
that an employee was suspended or fired erroneously, no withholdings are 
made from the back pay. Exception: if death or accidental dismemberment 
occurs during the period between the employee's removal and the finding 
that the agency action was erroneous, premiums are withheld from the 
back pay awarded.
    (f) If an individual's periodic pay, compensation, or annuity isn't 
sufficient to cover the full withholdings, any amount available for life 
insurance withholding must be applied first to Basic insurance, with any 
remainder applied to Optional insurance (first to Option B, then Option 
A, then Option C).