payment may be made in the order of precedence as if the person had 1 predeceased the employee, and the payment bars recovery by any other ¿erson. e 1 (c) If, within 2 years after the death of the employee, no claim for e payment has been filed by a person entitled under the order of preceence named by subsection (a) of this section, and neither the Office or the administrative office established by the company concerned pursuant to section 8709 (b) of this title has received notice that such claim will be made, payment may be made to the claimant who in the adgment of the Office is equitably entitled thereto, and the payment ars recovery by any other person. (d) If, within 4 years after the death of the employee, payment has cot been made under this section and no claim for payment by a person entitled under this section is pending, the amount payable escheats to the credit of the Employees' Life Insurance Fund. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 594, amended Pub. L. 90-83, § 1 (91), Sept. 11, 1967, 81 Stat. 219; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 5-583, Nov. 2, 1978, 92 Stat. 2481.) 8706. Termination of insurance (a) A policy purchased under this chapter shall contain a provision, approved by the Office of Personnel Management, to the effect that nsurance of an employee stops on his separation from the service or 12 months after discontinuance of his pay, whichever is earlier, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Office. 2 (b) (1) In the case of an employee who retires on an immediate annuity and has been insured under this chapter throughout (A) the 5 years of service immediately preceding the date of the employee's retirement, or (B) the full period or periods of service during which the employee was entitled to be insured, if fewer than 5 years, life insurance, without accidental death and dismemberment insurnce may be continued, under conditions determined by the Office. (2) In the case of any employee who becomes entitled to receive ompensation under subchapter I of chapter 81 of this title because of isease or injury to the employee and has been insured under this hapter throughout (A) the 5 years of service immediately preceding the date the employee becomes entitled to compensation, or (B) the full period or periods of service during which the employee was entitled to be insured, if fewer than 5 years, ife insurance, without accidental death and dismemberment insurance, may be continued, under conditions determined by the Office, Turing the period the employee is receiving compensation and is held by the Secretary of Labor or the Secretary's delegate to be unable to return to duty. (3) The amount of life insurance continued under paragraph (1) or 2) of this subsection shall be continued, with or without reduction, at he end of each full calendar month after the date the employee becomes 65 years of age and is retired or is receiving compensation for disease or injury, in accordance with the employee's written election at the time eligiblity to continue insurance during retirement or receipt of compensation arises, as follows: (A) the employee may elect to have the deductions required by section 8707 of this title withheld from annuity or compensation, and the employee's life insurance shall be reduced each month by 2 percent of the face value until 25 percent of the amount of life insurance in force before the first reduction remains; or (B) in addition to any deductions which would be required if the insurance were continued as provided under subparagraph (A) of this paragraph, the employee may elect continuous withholdings from annuity or compensation in amounts determined by the Office, and the employee's life insurance coverage shall be either continued without reduction or reduced each month by no more than 1 percent of its face value until no less than 50 percent of the amount of insurance in force before the first reduction remains. (4) If an employee elects to continue insurance under subparagraph (B) of paragraph (3) of this subsection at the time eligibility to continue insurance during retirement or receipt of compensation for disease or injury arises, the individual may later cancel that election and life insurance coverage shall continue as if the individual had originally elected coverage under subparagraph (A) of paragraph (3) of this subsection. (c) The insurance granted to an employee stops, except for a 31day extension of life insurance coverage, on the day immediately before his entry on active duty or active duty for training unless the period of duty is covered by military leave with pay. The insurance does not stop during a period of inactive duty training. For the purpose of this subsection, the terms "active duty", "active duty for training", and "inactive duty training" have the meanings given them by section 101 of title 38. (d) Notwithstanding subsections (a) and (b) of this section, an employee who enters on approved leave without pay to serve as a fulltime officer or employee of an organization composed primarily of employees as defined by section 8701 (a) of this title, within 60 days after entering on that leave without pay, may elect to continue his insurance and arrange to pay currently into the Employees' Life Insurance Fund, through his employing agency, both employee and agency contributions from the beginning of leave without pay. The employing agency shall forward the premium payments to the Fund. If the employee does not so elect, his insurance will continue during nonpay status and stop as provided by subsection (a) of this section. (e) If the insurance of an employee stops because of separation from the service or suspension without pay, and the separation or suspension is thereafter officially found to have been erroneous, the employee is deemed to have been insured during the period of erroneous separation or suspension. Deductions otherwise required by section 8707 of this chapter shall not be withheld from any backpay awarded for the period of separation or suspension unless death or accidental dismemberment of the employee occurs during such period. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 595, amended Pub. L. 90-83, 1(92), Sept. 11, 1967, 81 Stat. 219; Pub. L. 92-529, § 1, Oct. 21, 1972, 36 Stat. 1050; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 9583, Nov. 2, 1978, 92 Stat. 2481; Pub. L. 96-427, Oct. 10, 1980, 94 Stat. 1832.) S707. Employee deductions; withholding (a) During each period in which an employee is insured under a policy purchased by the Office of Personnel Management under section 8709 of this title, there shall be withheld from the employee's pay a share of the cost of the group life insurance and accidental death and dismemberment insurance. (b) (1) Whenever life insurance continues after an employee retires on an immediate annuity or while the employee is receiving compensation under subchapter I of chapter 81 of this title because of disease or injury to the employee, as provided in section 8706(b) of this title, deductions for insurance shall be withheld from the employee's annuity or compensation, except that, in any case in which the insurance is ontinued as provided in section 8706 (b) (3) (A) of this title, the deductions shall not be made for months after the calendar month in which the employee becomes 65 years of age. (2) Notwithstanding paragraph (1) of this subsection, insurance shall be so continued without cost (other than as provided under section 8706 (b) (3) (B)) to each employee who so retires, or commences receiving compensation, on or before December 31, 1989. (c) The amount withheld from the pay, annuity, or compensation of each employee subject to insurance deductions shall be at the rate, adjusted to the nearest half-cent, of 6623 percent of the level cost as determined by the Office for each $1,000 of the employee's basic Insurance amount. (d) If an agency fails to withhold the proper amount of life Insurance deductions from an individual's salary, compensation, or retirement annuity, the collection of unpaid deductions may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of unpaid deductions, the agency shall submit an amount equal to the sum of the uncollected deductions and related agency contributions required under section 8708 of this title to the Office for deposit to the Employees' Life Insurance Fund. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 595, amended Pub. L. 90-206, § 402, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-427, Oct. 10, 1980, 4 Stat. 1833.) $8708. Government contributions (a) For each period in which an employee is insured under a policy of insurance purchased by the Office of Personnel Management under Section 8709 of this title, a sum equal to one-half the amount which is withheld from the pay of the employee under section 8707 of this title shall be contributed from the appropriation or fund which is used to pay him. (b) When an employee is paid by the Clerk of the House of Representatives, the Clerk may contribute the sum required by subsection (a) of this section from the contingent fund of the House. (c) When the employee is an elected official, the sum required by subsection (a) of this section is contributed from an appropriation or fund available for payment of other salaries of the same office or establishment. (Pub. L. 89-544, Sept. 6, 1966, 80 Stat. 595, amended Pub. L. 90-206, § 403, Dec. 16, 1967, 81 Stat. 647; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224.) § 8709. Insurance policies (a) The Office of Personnel Management, without regard to section 5 of title 41, may purchase from one or more life insurance companies a policy or policies of group life and accidental death and dismemberment insurance to provide the benefits specified by this chapter. A company must meet the following requirements: (1) It must be licensed to transact life and accidental death and dismemberment insurance under the laws of 48 of the States and the District of Columbia. (2) It must have in effect, on the most recent December 31 for which information is available to the Office, an amount of employee group life insurance equal to at least 1 percent of the total amount of employee group life insurance in the United States in all life insurance companies. (b) A company issuing a policy under subsection (a) of this section shall establish an administrative office under a name approved by the Office. (c) The Office at any time may discontinue a policy purchased from a company under subsection (a) of this section. (d) (1) The provisions of any contract under this chapter which relate to the nature or extent of coverage or benefits (including payments with respect to benefits) shall supersede and preempt any law of any State or political subdivision thereof, or any regulation issued thereunder, which relates to group life insurance to the extent that the law or regulation is inconsistent with the contractual provisions. (2) For the purpose of this section, "State" means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, and a territory or possession of the United States. (Pub. L. 98 554, Sept. 6, 1966, 80 Stat. 596, amended Pub. L. 90–206, § 403, Dec. 16 1967, 81 Stat. 647; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 96-427, Oct. 10, 1980, 94 Stat. 1834.) § 8710. Reinsurance (a) The Office of Personnel Management shall arrange with a com pany issuing a policy under this chapter for the reinsurance, under conditions approved by the Office, of portions of the total amount of insurance under the policy, determined under this section, with other life insurance companies which elect to participate in the reinsurance (b) The Office shall determine for and in advance of a policy year which companies are eligible to participate as reinsurers and th amount of insurance under a policy which is to be allocated to th issuing company and to reinsurers. The Office shall make this deter mination at least every 3 years and when a participating company withdraws. (c) The Office shall establish a formula under which the amount of insurance retained by an issuing company after ceding reinsurance, and the amount of reinsurance ceded to each reinsurer, is in proportion to the total amount of each company's group life insurance, excluding insurance purchased under this chapter, in force in the United States on the determination date, which is the most recent December 31 for which information is available to the Office. In determining the proportions, the portion of a company's group life insurance in force on the determination date in excess of $100.000.000 shall be reduced by (1) 25 percent of the first $100.000.000 of the excess; (3) 75 percent of the third $100,000,000 of the excess; and However, the amount retained by or ceded to a company may not exceed 25 percent of the amount of the company's total life insurance in force in the United States on the determination date. (d) A fraternal benefit association which is (1) licensed to transact life insurance under the laws of a State or the District of Columbia; and (2) engaged in issuing insurance certificates on the lives of employees of the United States exclusively; is eligible to act as a reinsuring company and may be allocated an amount of reinsurance equal to 25 percent of its total life insurance in force on employees of the United States on the determination date named by subsection (c) of this section. (e) An issuing company or reinsurer is entitled, as a minimum, to be allocated an amount of insurance under the policy equal to any reduction from December 31, 1953. to the determination date, in the amount of the company's group life insurance under policies issued to associations of employees of the United States. However, any increase under this subsection in the amount allocated is reduced by the amount in force on the determination date of any policy covering life insurance agreements assumed by the Office. (f) The Office may modify the computations under this section as necessary to carry out the intent of this section. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 596; amended Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224.) 8711. Basic tables of premium rates (a) A policy purchased under this chapter shall include, for the first policy year, basic tables of premium rates as follows: (1) For group life insurance, a schedule of basic premium rates by age which the Office of Personnel Management determines to be consistent with the lowest schedule of basic premium rates generally charged for new group life insurance policies issued to large employers. (2) For group accidental death and dismemberment insurance, a basic premium rate which the Office determines is consistent with the lowest rate generally charged for new group accidental death and dismemberment policies issued to large employers. |