
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8714a]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                       CHAPTER 87--LIFE INSURANCE
 
Sec. 8714a. Optional insurance

    (a) Under the conditions, directives, and terms specified in 
sections 8709-8712 of this title, the Office of Personnel Management, 
without regard to section 5 of title 41, may purchase a policy which 
shall make available to each insured employee equal amounts of optional 
life insurance and accidental death and dismemberment insurance in 
addition to the amounts provided in section 8704(a) of this title.
    (b) The optional life insurance and accidental death and 
dismemberment insurance shall be made available to each insured employee 
under such conditions as the Office shall prescribe and in amounts 
approved by the Office but not more than the greater of $10,000 or an 
amount which, when added to the amount provided in section 8704(a) of 
this title, makes the sum of his insurance equal to his annual pay.
    (c)(1) Except as otherwise provided in this subsection, the optional 
insurance on an employee stops on his separation from 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)(A) In the case of any employee who retires on an immediate 
annuity and has been insured under this section throughout--
        (i) the 5 years of service immediately preceding the date of 
    such retirement, or
        (ii) the full period or periods of service during which the 
    employee was entitled to be insured, if less than 5 years,

the amount of optional life insurance only which has been in force 
throughout such period may be continued, under conditions determined by 
the Office.
    (B) In the case of any employee who becomes entitled to receive 
compensation under subchapter I of chapter 81 of this title because of 
disease or injury to the employee and has been insured under this 
section throughout--
        (i) the 5 years of service immediately preceding the date such 
    employee becomes entitled to such compensation, or
        (ii) the full period or periods of service during which the 
    employee was entitled to be insured, if less than 5 years,

the amount of optional life insurance only which has been in force 
throughout such period may be continued, under conditions determined by 
the Office, during the period the employee is receiving such 
compensation for disease or injury and is held by the Secretary of Labor 
or his delegate to be unable to return to duty.
    (C) The amount of optional life insurance continued under 
subparagraph (A) or subparagraph (B) of this paragraph shall be reduced 
by 2 percent at the 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. The Office shall 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.
    (3) Notwithstanding paragraph (c)(1) of this section,\1\ a justice 
or judge of the United States as defined by section 8701(a)(5) of this 
title who resigns his office without meeting the requirements of section 
371(a) of title 28, United States Code, for continuation of the judicial 
salary shall have the right to convert regular optional life insurance 
coverage issued under this section during his judicial service to an 
individual policy of life insurance under the same conditions approved 
by the Office governing conversion of basic life insurance coverage for 
employees eligible as provided in section 8706(a) of this title.
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    \1\ So in original. Probably should be ``paragraph (1) of this 
subsection,''.
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    (d)(1) During each period in which an employee has the optional 
insurance the full cost thereof shall be withheld from his pay. During 
each period in which an employee continues optional life insurance after 
retirement or while in receipt of compensation for work injuries, as 
provided in section 8706(b) of this title, the full cost thereof shall 
be withheld from his annuity or compensation, except that, at the end of 
the calendar month in which he becomes 65 years of age, the optional 
life insurance shall be without cost to him. Amounts so withheld shall 
be deposited, used, and invested as provided in section 8714 of this 
title and shall be reported and accounted for separately from amounts 
withheld and contributed under sections 8707 and 8708 of this title.
    (2) If an agency fails to withhold the proper cost of optional 
insurance from an individual's salary, compensation, or retirement 
annuity, the collection of amounts properly due 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 any unpaid amount, the agency 
shall submit an amount equal to the uncollected amount to the Office for 
deposit to the Employees' Life Insurance Fund.
    (3) Notwithstanding paragraph (1), an employee who is subject to 
withholdings under this subsection and whose pay, annuity, or 
compensation is insufficient to cover such withholdings may nevertheless 
continue optional insurance if the employee arranges to pay currently 
into the Employees' Life Insurance Fund, through the agency or 
retirement system which administers pay, annuity, or compensation, an 
amount equal to the withholdings that would otherwise be required under 
this subsection.
    (e) The cost of the optional insurance shall be determined from time 
to time by the Office on the basis of such age groups as it considers 
appropriate.
    (f) The amount of optional life, or life and accidental death, 
insurance in force on an employee at the date of his death shall be paid 
as provided in section 8705 of this title.

(Added Pub. L. 90-206, title IV, Sec. 404(1), Dec. 16, 1967, 81 Stat. 
647; amended Pub. L. 95-454, title IX, Sec. 906(a)(2), (3), Oct. 13, 
1978, 92 Stat. 1224; Pub. L. 95-583, Sec. 1(c), Nov. 2, 1978, 92 Stat. 
2481; Pub. L. 96-427, Sec. 6, Oct. 10, 1980, 94 Stat. 1834; Pub. L. 98-
353, title II, Sec. 206, July 10, 1984, 98 Stat. 351, as amended by Pub. 
L. 99-336, Sec. 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 99-335, 
title II, Sec. 207(k)(3), June 6, 1986, 100 Stat. 597; Pub. L. 99-336, 
Sec. 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105-311, Sec. 6(2), 
Oct. 30, 1998, 112 Stat. 2951.)


                               Amendments

    1998--Subsec. (d)(3). Pub. L. 105-311 added par. (3).
    1986--Subsec. (c)(1). Pub. L. 99-336 amended Pub. L. 98-353, 
Sec. 206, generally. See 1984 Amendment note below.
    Pub. L. 99-335 amended par. (1) generally, effective Jan. 1, 1987. 
Prior to such effective date, par. (1) read as follows: ``The optional 
insurance on an employee stops on his separation from service, 12 months 
after discontinuance of his pay, or on his entry on active duty or 
active duty for training, as provided in sections 8706(a) and 8706(c) of 
this title. Justices and judges of the United States described in 
section 8701(a)(5)(ii) and (iii) of this chapter are deemed to continue 
in active employment for purposes of this chapter.''
    1984--Subsec. (c)(1). Pub. L. 98-353, Sec. 206, as amended generally 
by Pub. L. 99-336, inserted sentence which deemed justices and judges 
described in section 8701(a)(5)(ii) and (iii) of this chapter to 
continue in active employment for purposes of this chapter.
    Subsec. (c)(3). Pub. L. 98-353, Sec. 206, added par. (3).
    1980--Subsec. (c)(2)(C). Pub. L. 96-427, Sec. 6(a), substituted 
provisions that the amount of optional life insurance shall be reduced 
by 2% at the end of each calendar month after the date the employee 
becomes 65 years of age and is retired or is receiving compensation for 
disease or injury and that the Office shall prescribe minimum amount of 
life insurance in force before the first reduction to which the 
insurance may be reduced for provisions that such optional insurance be 
subject to the same monthly reductions as required for regular life 
insurance under section 8706(b)(3) of this title.
    Subsec. (d). Pub. L. 96-427, Sec. 6(b), designated existing 
provisions as par. (1) and added par. (2).
    1978--Subsecs. (a), (b). Pub. L. 95-454 substituted ``Office of 
Personnel Management'' for ``Civil Service Commission'' and ``Office'' 
for ``Commission'' wherever appearing.
    Subsec. (c)(1). Pub. L. 95-583, Sec. 1(c)(1), substituted reference 
to section ``8706(c)'' for ``8706(d)''.
    Subsec. (c)(2). Pub. L. 95-583, Sec. 1(c)(2), added par. (2) and 
struck out former par. (2) which read as follows: ``So much of the 
optional life insurance in force on an employee on the date he retires 
on an immediate annuity or becomes entitled to receive compensation for 
work injuries which has been in force for not less than--
        ``(A) the full period or periods of service during which the 
    optional insurance was available to him; or
        ``(B) the 12 years of service immediately preceding his 
    retirement or beginning date of entitlement to compensation for work 
    injuries and during which the optional insurance was available to 
    him;
whichever is shorter, may be continued--
        ``(A) after retirement, under the same conditions (except with 
    respect to cost but including reduction of the amount continued) as 
    provided in section 8706(b) of this title; or
        ``(B) while in receipt of compensation for work injuries under 
    the same conditions (except with respect to cost) as provided in 
    section 8706(c) of this title.''
    Pub. L. 95-454, which substituted ``Office'' for ``Commission'', was 
executed to text of subsec. (c)(2) as amended by Pub. L. 95-583. See 
Effective Date of 1978 Amendments note below.
    Subsec. (d). Pub. L. 95-583, Sec. 1(c)(3), struck out ``or 8706(c)'' 
after ``section 8706(b)''.
    Subsec. (e). Pub. L. 95-454 substituted ``Office'' for 
``Commission''.


                    Effective Date of 1998 Amendment

    Amendment by Pub. L. 105-311 effective on the first day of the first 
applicable pay period beginning on or after Oct. 30, 1998, see section 
11(d) of Pub. L. 105-311, set out as a note under section 8701 of this 
title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-335 effective Jan. 1, 1987, see section 
702(a) of Pub. L. 99-335, set out as an Effective Date note under 
section 8401 of this title.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-353, Sec. 206, as amended generally by Pub. 
L. 99-336, Sec. 7(1), applicable to any justice or judge who retires 
under 28 U.S.C. 371(a) or (b) or 372(a) on or after January 1, 1982, see 
section 207 of Pub. L. 98-353, as amended generally by Pub. L. 99-336, 
Sec. 7(2), set out as a note under section 8706 of this title.


                    Effective Date of 1980 Amendment

    Amendment by Pub. L. 96-427 effective Oct. 10, 1980, with amendment 
to have no effect in case of an employee who died, was separated, or 
retired before Oct. 10, 1980, see section 10(a) of Pub. L. 96-427, set 
out as a note under section 8701 of this title.


                    Effective Date of 1978 Amendments

    Amendment by Pub. L. 95-583 effective Nov. 2, 1978, see section 3 of 
Pub. L. 95-583, set out as a note under section 8706 of this title.
    Amendment by Pub. L. 95-454 effective 90 days after Oct. 13, 1978, 
see section 907 of Pub. L. 95-454, set out as a note under section 1101 
of this title.


                             Effective Date

    Section 405(b) of Pub. L. 90-206 provided that:
    ``(1) The amendments made by section 404 of this Act [enacting this 
section and amending analysis preceding section 8701 of this title] 
shall take effect on the first day of the first pay period which begins 
on or after the one hundred and eightieth day following the date of 
enactment [Dec. 16, 1967], or on any earlier date that the Civil Service 
Commission may prescribe, which is at least sixty days after the date of 
enactment [Dec. 16, 1967]. In the case of an employee who dies during 
the period beginning on the date of enactment [Dec. 16, 1967] and ending 
on the effective date prescribed by or pursuant to this subsection, or 
during the sixty days immediately following such period if the 
Commission determines that he did not have a reasonable opportunity to 
elect the optional insurance made available by section 404, the 
insurance of such employee shall be determined as if the amendments made 
by section 404 had been in effect on the date of such death, and the 
employee had elected to receive the maximum amount of optional insurance 
available to him under such amendments. An employee who retires during 
the period beginning on the date of enactment and ending on the 
effective date prescribed by or pursuant to this subsection shall have 
an opportunity to elect the optional insurance made available by section 
404.
    ``(2) In the case of an employee in the service on the effective 
date prescribed by or pursuant to this subsection, (i) the period during 
which such employee may elect to receive optional insurance under the 
amendment made by section 404 shall not expire prior to the sixtieth day 
after such effective date, and (ii) for the purpose of determining the 
amount of insurance to be continued after retirement, the period during 
which such optional insurance was available to such employee shall not 
be considered to have commenced prior to the expiration of sixty days 
following such effective date.''


                           Retroactive Effect

    Enactment of this section by Pub. L. 90-206 to have no effect in the 
case of an employee who died, was finally separated, or retired prior to 
Dec. 16, 1967, see section 405(c) of Pub. L. 90-206, set out as an 
Retroactive Effect of 1967 Amendment note under section 8704 of this 
title.


     Availability of Certain Funds in Employees' Life Insurance Fund

    Section 11 of Pub. L. 96-427 provided that: ``Amounts credited to 
the Employees' Life Insurance Fund under section 8714a(d) of title 5, 
United States Code shall be available for expenses incurred by the 
Office of Personnel Management in implementing the amendments made by 
sections 7 and 8 of this Act [enacting sections 8714b, 8714c, and 
8701(d) of this title].''

                  Section Referred to in Other Sections

    This section is referred to in sections 8714b, 8714c, 8714d of this 
title.
