
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: 5USC8714c]

 
             TITLE 5--GOVERNMENT ORGANIZATION AND EMPLOYEES
 
                           PART III--EMPLOYEES
 
                   Subpart G--Insurance and Annuities
 
                       CHAPTER 87--LIFE INSURANCE
 
Sec. 8714c. Optional life insurance on family members

    (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 optional life insurance (without 
accidental death and dismemberment insurance) on the employee's family 
members.
    (b)(1) The optional life insurance on family members 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--
        (A) $5,000 for a spouse; and
        (B) $2,500 for each child described under section 8701(d).

    (2) 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 optional 
life insurance on family members shall stop at the earlier of the 
employee's death, the employee's separation from the service, or 12 
months after discontinuance of pay, subject to a provision for temporary 
extension of life insurance coverage and for conversion to individual 
policies of life insurance under conditions approved by the Office.
    (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 
and who has had in force insurance under this section for no 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,

optional life insurance on family members may be continued under the 
same conditions as provided in section 8714b(c)(2) through (4).
    (d)(1) During each period in which the optional life insurance on 
family members is in force the full cost thereof shall be withheld from 
the employee's pay. During each period in which an employee continues 
optional life insurance on family members 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 shall be withheld from the annuity or 
compensation, except that, beginning at the end of the calendar month in 
which the former employee becomes 65 years of age, the optional life 
insurance on family members shall be without cost to the employee. 
Notwithstanding the preceding sentence, the full cost shall be continued 
after the calendar month in which the former employee becomes 65 years 
of age if, and for so long as, an election under this section 
corresponding to that described in section 8714b(c)(3)(B) remains in 
effect with respect to such former employee. Amounts so withheld 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 optional life 
insurance on family members 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 life insurance on family members if the employee 
arranges to pay currently into the Employees' Life Insurance Fund, 
through the agency or retirement system that 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 life insurance on family members 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 optional life insurance which is in force under 
this section on a family member of an employee or former employee on the 
date of the death of the family member shall be paid, on the 
establishment of a valid claim by the employee, to such employee or, in 
the event of the death of the employee before payment can be made, to 
the person or persons entitled to the group life insurance in force on 
the employee under section 8705 of this title.

(Added Pub. L. 96-427, Sec. 8(a), Oct. 10, 1980, 94 Stat. 1836; amended 
Pub. L. 98-353, title II, Sec. 206, 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)(5), June 6, 1986, 100 Stat. 598; Pub. L. 99-336, Sec. 7(1), 
June 19, 1986, 100 Stat. 639; Pub. L. 105-311, Secs. 6(4), 8, Oct. 30, 
1998, 112 Stat. 2951, 2953.)


                               Amendments

    1998--Subsec. (b). Pub. L. 105-311, Sec. 8(a), amended subsec. (b) 
generally. Prior to amendment, subsec. (b) read as follows: ``The 
optional life insurance on family members provided under this section 
shall be made available to each eligible employee who elects coverage 
under this section, under conditions the Office shall prescribe, in the 
amount of $5,000 for a spouse and $2,500 for each child described in 
section 8701(d). The employee may stop coverage elected under this 
section at any time.''
    Subsec. (c)(2). Pub. L. 105-311, Sec. 8(b)(1), substituted ``section 
8714b(c)(2) through (4)'' for ``section 8714b(c)(2) of this title''.
    Subsec. (d)(1). Pub. L. 105-311, Sec. 8(b)(2), inserted before last 
sentence ``Notwithstanding the preceding sentence, the full cost shall 
be continued after the calendar month in which the former employee 
becomes 65 years of age if, and for so long as, an election under this 
section corresponding to that described in section 8714b(c)(3)(B) 
remains in effect with respect to such former employee.''
    Subsec. (d)(3). Pub. L. 105-311, Sec. 6(4), 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, 1977. 
Prior to such effective date, par. (1) read as follows: ``Optional life 
insurance on family members shall stop at the earlier of the employee's 
death, the employee's separation from the service, 12 months after 
discontinuance of pay, or the employee's entry on active duty or active 
duty for training, as provided in sections 8706(a) and 8706(c) of this 
title, subject to provision for a 31-day temporary extension of 
insurance coverage and for conversion to individual policies 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.''
    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.


                    Effective Date of 1998 Amendment

    Amendment by section 6(4) 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 8 of Pub. L. 105-311 effective on the 
first day of the first pay period which begins on or after the 180th day 
following Oct. 30, 1998, or on any earlier date that the Office of 
Personnel Management may prescribe, see section 11(d), (f) 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

    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.

                  Section Referred to in Other Sections

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