88524. Accrued leave

For the purpose of this subchapter, a payment for unused accrued leave under section 501 (b) of title 37 at the termination of Federal service is deemed

(1) to continue that Federal service during the period after the termination with respect to which the individual received the payment; and

(2) Federal wages, subject to regulations prescribed by the Secretary of Labor concerning allocation over the period after termination.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 591.)

§ 8525. Effect on other statutes

(a) Repealed. Pub. L. 90-83, § 1(90), Sept. 11, 1967, 81 Stat. 219. (b) An individual is not entitled to compensation under this subchapter for any period with respect to which he receives

(1) a subsistence allowance under chapter 31 of title 38 or under part VIII of Veterans Regulation Numbered 1(a); or (2) an educational assistance allowance under chapter 35 of title 38.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 591, amended Pub. L. 90-83, § 1(90), Sept. 11, 1967, 81 Stat. 219.)

8711. Basic tables of premium rates.

8712. Annual accounting; special contingency reserve.

(a) For the purpose of this chapter, "employee" means

(1) an employee as defined by section 2105 of this title;

(2) a Member of Congress as defined by section 2106 of this title;

(3) a Congressional employee as defined by section 2107 of this title;

(4) the President;

(5) an individual employed by the government of the District of Columbia;

(6) an individual employed by Gallaudet College;

(7) a United States Commissioner to whom subchapter III of chapter 83 of this title applies by operation of section 8331 (1) (E) of this title;

(8) an individual employed by a county committee established under section 590h (b) of title 16; and

(9) an individual appointed to a position on the office staff of a former President under section 1(b) of the Act of August 25, 1958 (72 Stat. 838);

but does not include

(A) an employee of a corporation supervised by the Farm Credit Administration if private interests elect or appoint a member of the board of directors;

(B) a noncitizen employee whose permanent duty station is outside the United States; or

(C) an employee excluded by regulation of the Civil Service Commission under section 8716(b) of this title.

(b) Notwithstanding subsection (a) of this section, the employment of a teacher in the recess period between two school years in a position other than a teaching position in which he served immediately before the recess period does not qualify the individual as an employee for the purpose of this chapter. For the purpose of this subsection, "teacher" and "teaching position" have the meanings given them by section 901 of title 20. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 592.) § 8702. Automatic coverage

(a) An employee is automatically insured on the date he becomes eligible for insurance and each policy of insurance purchased by the Civil Service Commission under this chapter shall provide for that automatic coverage.

(b) An employee desiring not to be insured shall give written notice to his employing office on a form prescribed by the Commission. If the notice is received before he has become insured, he shall not be insured. If the notice is received after he has become insured, his insurance stops at the end of the pay period in which the notice is received. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 593.)

§ 8703. Benefit certificate

The Civil Service Commission shall arrange to have each insured employee receive a certificate setting forth the benefits to which he is entitled, to whom the benefits are payable, to whom the claims shall be submitted, and summarizing the provisions of the policy principally affecting him. The certificate is issued instead of the certificate which the insurance company would otherwise be required to issue. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 593.)

§ 8704. Group insurance; amounts

(a) An employee eligible for insurance is entitled to be insured for an amount of group life insurance, plus an equal amount of group accidental death and dismemberment insurance, in accordance with the following schedule, which schedule shall be automatically ex

tended correspondingly by the amounts of increases in the annual rate of basic pay for positions at level II of the Executive Schedule under section 5313 of this title: "

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(b) Subject to the conditions and limitations approved by the Civil Service Commission which are contained in the policy purchased by the Commission, the group accidental death and dismemberment insurance provides payment as follows:

For loss of life...........

Loss

Amount payable

Full amount shown in the schedule in subsection (a) of this section.

Loss of one hand or of one foot or loss of sight of one eye.... One-half the amount shown in the schedule in subsecLoss of two or more such members....

tion (a) of this section. Full amount shown in the schedule in subsection (a) of this section.

For any one accident the aggregate amount of group accidental death and dismemberment insurance that may be paid may not exceed the amount shown in the schedule in subsection (a) of this section.

(c) The Commission shall prescribe regulations providing for the conversion of other than annual rates of pay to annual rates of pay and shall specify the types of pay included in annual pay. For the purpose of this chapter, "annual pay" includes premium pay under section 5545 (c) (1) of this title.

Effective Mar. 1, 1969, the rate of pay for level II was raised to $42,500 as the result of the Presidential salary recommendations, Budget, 1970, made pursuant to Pub. L. 90-206, $225 (h), Dec. 16, 1967, 81 Stat. 634. The maximum amount of insurance payable was thus automatically increased from $32,000 to $45,000.

(d) In determining the amount of insurance to which an employee is entitled

(1) a change in rate of pay under section 5337 of this title is deemed effective as of the first day of the pay period after the pay period in which the payroll change is approved; and

(2) a change in rate of pay under section 5343 of this title is deemed effective as of the date of issuance of the order granting the increase or the effective date of the increase, whichever is later. (Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 593, amended Pub. L. 89–737, § 1(3), Nov. 2, 1966, 80 Stat. 1164; Pub. L. 90-206, title IV, § 401, Dec. 16, 1967, 81 Stat. 646.)

§ 8705. Death claims; order of precedence; escheat

(a) The amount of group life insurance and group accidental death insurance in force on an employee at the date of his death shall be paid, on the establishment of a valid claim, to the person or persons surviving at the date of his death, in the following order of precedence:

First, to the beneficiary or beneficiaries designated by the employee in a signed and witnessed writing received before death in the employing office or, if insured because of receipt of annuity or of benefits under subchapter I of chapter 81 of this title as provided by section 8706 (b) or (c) of this title, in the Civil Service Commission. For this purpose, a designation, change, or cancellation of beneficiary in a will or other document not so executed and filed has no force or effect.

Second, if there is no designated beneficiary, to the widow or widower of the employee.

Third, if none of the above, to the child or children of the employee and descendants of deceased children by representation. Fourth, if none of the above, to the parents of the employee or the survivor of them.

Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee.

Sixth, if none of the above, to other next of kin of the employee entitled under the laws of the domicile of the employee at the date of his death.

(b) If, within 1 year after the death of the employee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, or if payment to the person within that period is prohibited by Federal statute or regulation, payment may be made in the order of precedence as if the person had predeceased the employee, and the payment bars recovery by any other person.

(c) If, within 2 years after the death of the employee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, and neither the Commission nor the administrative office established by the company concerned pursuant to section 8709 (b) of this title has received notice that

such a claim will be made, payment may be made to the claimant who in the judgment of the Commission is equitably entitled thereto, and the payment bars recovery by any other person.

(d) If, within 4 years after the death of the employee, payment has not 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.)

88706. Termination of insurance

(a) A policy purchased under this chapter shall contain a provision, approved by the Civil Service Commission, to the effect that insurance 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 Commission.

(b) If on the date the insurance would otherwise stop the employee retires on an immediate annuity and—

(1) his retirement is for disability; or

(2) he has completed 12 years of creditable service as determined by the Commission;

his life insurance only may be continued, without cost to him, under conditions determined by the Commission. Periods of honorable, active service in the armed forces shall be credited toward the required 12 years if the employee has completed at least 5 years of civilian service. The amount of life insurance continued under this subsection shall be reduced by 2 percent at the end of each full calendar month after the date the employee becomes 65 years of age or retires, whichever is later. The Commission may prescribe minimum amounts, not less than 25 percent of the amount of life insurance in force before the first reduction, to which the insurance may be reduced.

(c) If on the date the insurance would otherwise stop the employee is receiving benefits under subchapter I of chapter 81 of this title because of disease or injury to himself, his life insurance only may be continued, without cost to him, under conditions determined by the Commission while he is receiving the benefits and is held by the Department of Labor to be unable to return to duty.

(d) 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.

(e) Notwithstanding subsections (a)-(c) 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

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