[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR870.402]

[Page 395]
 
                    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)(1) The insured individual pays the full cost of all Optional 
insurance. There is no Government contribution toward the cost of any 
Optional insurance.
    (2) Optional insurance premiums are based on 5-year age bands 
beginning at age 35. The last age band for Option A is age 60+. The last 
age band for Options B and C is 80+. For the purpose of this subpart, 
effective April 24, 1999, an individual is considered to reach the next 
age band the 1st day of the pay period following the pay period in which 
his/her birthday occurs.
    (3) When OPM makes any adjustment to the Optional life insurance 
premiums, it will issue a public notice in the Federal Register.
    (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 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 under Sec. 870.705, 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) For Option A and Option C, the amount withheld from pay, 
annuity, or compensation paid on other than a biweekly basis must be 
computed and adjusted to the nearest cent.
    (2) For Option B, the amount withheld from pay, annuity, or 
compensation paid on other than a biweekly basis must be computed and 
adjusted to the nearest one-tenth of 1 cent.
    (e) If an employee's annual pay is paid during a period shorter than 
52 work weeks, the employing office must determine the amount to 
withhold. To do this, it converts the biweekly cost to an annual cost 
and prorates it over the number of installments of pay regularly paid 
during the year.
    (f) 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.

[68 FR 59081, Oct. 14, 2003]