
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 5USC8714b]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                       CHAPTER 87--LIFE INSURANCE
 
Sec. 8714b. Additional optional life insurance

    (a) Under the conditions, directives, and terms specified in 
sections 8709 through 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 employee insured under section 
8702 of this title amounts of additional optional life insurance 
(without accidental death and dismemberment insurance). An employee may 
elect coverage under this section without regard to whether the employee 
has elected coverage under optional insurance available under section 
8714a of this title.
    (b) The additional optional insurance provided under this section 
shall be made available to each eligible employee who has elected 
coverage under this section, under conditions the Office shall 
prescribe, in multiples, at the employee's election, of 1, 2, 3, 4, or 5 
times the annual rate of basic pay payable to the employee (rounded to 
the next higher multiple of $1,000). An employee may reduce or stop 
coverage elected pursuant to this section at any time.
    (c)(1) Except as otherwise provided in this subsection, the 
additional optional insurance elected by an employee pursuant to this 
section shall stop on 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. 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. 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 additional 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.
    (2) In the case of any employee who retires on an immediate annuity 
or who becomes entitled to receive compensation under subchapter I of 
chapter 81 of this title because of disease or injury to the employee, 
so much of the additional optional insurance as has been in force for 
not less than--
        (A) the 5 years of service immediately preceding the date of 
    retirement or entitlement to compensation, or
        (B) the full period or periods of service during which the 
    insurance was available to the employee, if fewer than 5 years,

may be continued under conditions determined by the Office after 
retirement or while the employee is receiving compensation under 
subchapter I of chapter 81 of this title and is held by the Secretary of 
Labor (or the Secretary's delegate) to be unable to return to duty.
    (3) The amount of additional optional insurance continued under 
paragraph (2) shall be continued, with or without reduction, in 
accordance with the employee's written election at the time eligibility 
to continue insurance during retirement or receipt of compensation 
arises, as follows:
        (A) The employee may elect to have withholdings cease in 
    accordance with subsection (d), in which case--
            (i) the amount of additional optional insurance continued 
        under paragraph (2) shall be reduced each month by 2 percent 
        effective at the beginning of the second calendar month after 
        the date the employee becomes 65 years of age and is retired or 
        is in receipt of compensation; and
            (ii) the reduction under clause (i) shall continue for 50 
        months at which time the insurance shall stop.

        (B) The employee may, instead of the option under subparagraph 
    (A), elect to have the full cost of additional optional insurance 
    continue to be withheld from such employee's annuity or compensation 
    on and after the date such withholdings would otherwise cease 
    pursuant to an election under subparagraph (A), in which case the 
    amount of additional optional insurance continued under paragraph 
    (2) shall not be reduced, subject to paragraph (4).
        (C) An employee who does not make any election under the 
    preceding provisions of this paragraph shall be treated as if such 
    employee had made an election under subparagraph (A).

    (4) If an employee makes an election under paragraph (3)(B), that 
individual may subsequently cancel such election, in which case 
additional optional insurance shall be determined as if the individual 
had originally made an election under paragraph (3)(A).
    (5)(A) An employee whose additional optional insurance under this 
section would otherwise stop in accordance with paragraph (1) and who is 
not eligible to continue insurance under paragraph (2) may elect, under 
conditions prescribed by the Office of Personnel Management, to continue 
all or a portion of so much of the additional optional insurance as has 
been in force for not less than--
        (i) the 5 years of service immediately preceding the date of the 
    event which would cause insurance to stop under paragraph (1); or
        (ii) the full period or periods of service during which the 
    insurance was available to the employee, if fewer than 5 years,

at group rates established for purposes of this section, in lieu of 
conversion to an individual policy. The amount of insurance continued 
under this paragraph shall be reduced by 50 percent effective at the 
beginning of the second calendar month after the date the employee or 
former employee attains age 70 and shall stop at the beginning of the 
second calendar month after attainment of age 80, 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. Alternatively, insurance continued under this paragraph may be 
reduced or stopped at any time the employee or former employee elects.
    (B) When an employee or former employee elects to continue 
additional optional insurance under this paragraph following separation 
from service or 12 months without pay, the insured individual shall 
submit timely payment of the full cost thereof, plus any amount the 
Office determines necessary to cover associated administrative expenses, 
in such manner as the Office shall prescribe by regulation. Amounts 
required under this subparagraph shall be deposited, used, and invested 
as provided under section 8714 and shall be reported and accounted for 
together with amounts withheld under section 8714a(d).
    (C)(i) Subject to clause (ii), no election to continue additional 
optional insurance may be made under this paragraph 3 years after the 
effective date of this paragraph.
    (ii) On and after the date on which an election may not be made 
under clause (i), all additional optional insurance under this paragraph 
for former employees shall terminate, 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.
    (d)(1) During each period in which the additional optional insurance 
is in force on an employee the full cost thereof shall be withheld from 
the employee's pay. During each period in which an employee continues 
additional optional insurance after retirement or while in receipt of 
compensation under subchapter I of chapter 81 of this title because of 
disease or injury to the employee, as provided in subsection (c) of this 
section, the full cost thereof shall be withheld from the former 
employee's annuity or compensation, except that, if insurance is 
continued as provided under subsection (c)(3)(A), beginning at the end 
of the calendar month in which the former employee becomes 65 years of 
age, the additional optional life insurance shall be without cost to the 
former employee. Amounts so withheld (and any amounts withheld as 
provided in subsection (c)(3)(B)) shall be deposited, used, and invested 
as provided in section 8714 of this title and shall be reported and 
accounted for together with amounts withheld under section 8714a(d) of 
this title.
    (2) If an agency fails to withhold the proper cost of additional 
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 additional 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 additional optional insurance shall be 
determined from time to time by the Office on the basis of the 
employee's age relative to such age groups as the Office establishes 
under section 8714a(e) of this title.
    (f) The amount of additional optional life 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. 96-427, Sec. 7(a), Oct. 10, 1980, 94 Stat. 1834; amended 
Pub. L. 98-353, title II, Secs. 206, 207, 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)(4), June 6, 1986, 100 Stat. 597; 
Pub. L. 99-336, Sec. 7(1), June 19, 1986, 100 Stat. 639; Pub. L. 105-
311, Secs. 3(2), 6(3), 7(a), (c), Oct. 30, 1998, 112 Stat. 2950-2953.)


                               Amendments

    1998--Subsec. (b). Pub. L. 105-311, Sec. 3(2), in first sentence, 
struck out ``except that coverage may not exceed an amount equal to 5 
times the annual rate of basic pay payable for positions at level II of 
the Executive Schedule under section 5313 of this title (rounded to the 
next higher multiple of $1,000)'' after ``$1,000)''.
    Subsec. (c)(2). Pub. L. 105-311, Sec. 7(a)(1)(A), struck out at end 
``The amount of insurance continued under this paragraph shall be 
reduced each month by 2 percent effective at the beginning of the second 
calendar month after the date the employee becomes 65 years of age and 
is retired or is in receipt of compensation. The reduction shall 
continue for 50 months at which time the insurance stops.''
    Subsec. (c)(3) to (5). Pub. L. 105-311, Sec. 7(a)(1)(B), added pars. 
(3) to (5).
    Subsec. (d)(1). Pub. L. 105-311, Sec. 7(a)(2), (c), inserted ``if 
insurance is continued as provided under subsection (c)(3)(A),'' after 
``except that,'' and ``(and any amounts withheld as provided in 
subsection (c)(3)(B))'' after ``Amounts so withheld''.
    Subsec. (d)(3). Pub. L. 105-311, Sec. 6(3), added par. (3).
    1986--Subsec. (c)(1). Pub. L. 98-353, Sec. 206, as amended generally 
by Pub. L. 99-336, Sec. 7(1), 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.
    Pub. L. 99-335 substituted ``Except as otherwise provided in this 
subsection, the additional optional insurance elected by an employee 
pursuant to this section shall stop on 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'' for ``The additional optional insurance elected 
by an employee pursuant to this section shall stop on separation from 
service, 12 months after discontinuance of pay, or on entry on active 
military duty or active duty for training, subject to provision for a 
31-day temporary extension of insurance coverage and for conversion to 
an individual policy, as provided in sections 8706(a) and 8706(c) of 
this title''.
    1984--Subsec. (c)(1). Pub. L. 98-353 inserted ``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 additional 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.''


                    Effective Date of 1998 Amendment

    Amendment by sections 3(2) and 6(3) of Pub. L. 105-311 effective on 
the first day of the first applicable pay period beginning on or after 
Oct. 30, 1998, and amendment by section 7(a), (c) of Pub. L. 105-311 
effective on the first day of the first pay period that begins on or 
after the 180th day following Oct. 30, 1998, or on any earlier date that 
the Office of Personnel Management may prescribe that is at least 60 
days after Oct. 30, 1998, see section 11(b), (d), (e)(1) of Pub. L. 105-
311, set out as a note under section 8701 of this title.


                    Effective Date of 1986 Amendments

    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.
    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

    Section effective on first day of first pay period which begins on 
or after 180th day following Oct. 10, 1980, or on any earlier date that 
Office may prescribe which is at least 60 days after Oct. 10, 1980, and 
shall have no effect in case of an employee who died, was finally 
separated, or retired before effective date, see section 10(d) of Pub. 
L. 96-427 set out as an Effective Date of 1980 Amendment note under 
section 8701 of this title.


                           Report to Congress

    Pub. L. 105-311, Sec. 7(b), Oct. 30, 1998, 112 Stat. 2953, provided 
that: ``Not later than 3 years after the date of enactment of this Act 
[Oct. 30, 1998], the Office of Personnel Management shall submit a 
report to Congress on additional optional insurance provided under 
section 8714b(c)(5) of title 5, United States Code (as added by 
subsection (a) of this section). Such report shall include 
recommendations on whether continuation for such additional optional 
insurance should terminate as provided under such section, be extended, 
or be made permanent.''

                  Section Referred to in Other Sections

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