[Federal Register: May 9, 2002 (Volume 67, Number 90)]
[Notices]
[Page 31708-31709]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09my02-175]
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
Civil Service Retirement System; Present Value Factors
AGENCY: Office of Personnel Management.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is providing notice
of adjusted present value factors applicable to retirees who elect to
provide survivor annuity benefits to a spouse based on post-retirement
marriage and to retiring employees who elect the alternative form of
annuity, owe certain redeposits based on refunds of contributions for
service before October 1, 1990, or elect to credit certain service with
nonappropriated fund instrumentalities. This notice is necessary to
conform the present value factors to changes in economic assumptions
and demographic factors approved by the Board of Actuaries of the Civil
Service Retirement System.
EFFECTIVE DATE: The revised present value factors apply to survivor
reductions or employee annuities that commence on or after October 1,
2002.
ADDRESSES: Send requests for actuarial assumptions and data to the
Office of the Actuary, Room 4307 STOP, Office of Personnel Management,
Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Patrick Jennings, (202)-606-0299.
SUPPLEMENTARY INFORMATION: Several provisions of the Civil Service
Retirement System (CSRS) require reduction of annuities on an actuarial
basis. Under each of these provisions, we are required to issue
regulations on the method of determining the reduction to ensure that
the present value of the reduced annuity plus a lump-sum equals, to the
extent practicable, the present value of the unreduced benefit. The
regulations for each of these benefits provide that we will publish a
notice in the Federal Register whenever we change factors used to
compute the present values of these benefits.
Section 831.2205(a) of title 5, Code of Federal Regulations,
prescribes the method for computing the reduction in the beginning rate
of annuity payable to a retiree who elects an alternative form of
annuity under 5 U.S.C. 8343a. That reduction is required to produce an
annuity that is the actuarial equivalent of the annuity of a retiree
who does not elect an alternative form of annuity. The present value
factors listed below are used to compute the annuity reduction under
section 831.2205(a) of title 5, Code of Federal Regulations.
Section 831.303(c) of title 5, Code of Federal Regulations,
prescribes the use of these factors for computing the reduction to
complete payment of certain redeposits of refunded deductions based on
periods of service that ended before October 1, 1990, under section
8334(d)(2) of title 5, United States Code.
Section 831.663 of title 5, Code of Federal Regulations, prescribes
the use of similar factors for computing the reduction required for
certain elections to provide survivor annuity benefits based on a post-
retirement marriage under section 8339(j)(5)(C) or (k)(2) of title 5,
United States Code. Under section 11004 of the Omnibus Budget
Reconciliation Act of 1993, Public Law 103-66, effective October 1,
1993, OPM ceased collection of these survivor election deposits by
means of either a lump sum payment or by installments. Instead, OPM is
required to establish a permanent actuarial reduction in the annuity of
the retiree. This means that OPM must take the amount of the deposit
computed under the old law, and ``translate'' it into a lifetime
reduction in the retiree's benefit. The reduction is based on actuarial
tables, similar to those used for alternative forms of annuity under
section 8343a of title 5, United States Code.
Subpart F of part 847 of title 5, Code of Federal Regulations,
prescribes the use of similar factors for computing the deficiency the
retiree must pay to receive credit for certain service with
nonappropriated fund instrumentalities made creditable by an election
under section 1043 of Public Law 104-106.
The present value factors currently in effect were published by OPM
(62 FR 19149) on April 18, 1997. Today, OPM is publishing a notice in
the Federal Register to revise the normal cost percentage under the
FERS Act of 1986, Public Law 99-335, based on changed economic
assumptions and demographic factors approved by the Board of Actuaries
of the Civil Service Retirement System. Those changed economic
assumptions require corresponding changes in the present value factors.
The revised factors will become effective in October 2002 to correspond
with the changes in FERS normal cost percentages. For alternative forms
of annuity and redeposits of employee contributions, the new factors
will apply to annuities that commence on or after October 1, 2002. See
5 CFR 831.2205 and 831.303(c). For survivor election deposits, the new
factors will apply to survivor reductions that commence on or after
October 1, 2002. See 5 CFR 831.663(c) and (d). For obtaining credit for
service with certain nonappropriated fund instrumentalities, the new
factors will apply to cases in which the date of computation under
section 847.603 of title 5, Code of Federal Regulations, is on or after
October 1, 2002. See 5 CFR 847.602(c) and 847.603.
OPM is, therefore, revising the tables of present value factors to
read as follows:
[[Page 31709]]
CSRS Present Value Factors Applicable to Annuity Payable Following an
Election Under Section 8339(j) or (k) or Section 8343a of Title 5,
United States Code, or Under Section 1043 of Public Law 104-106 or
Following a Redeposit Under Section 8334(d)(2) of Title 5, United States
Code
------------------------------------------------------------------------
Present
Age value factor
------------------------------------------------------------------------
40........................................................ 280.4
41........................................................ 276.4
42........................................................ 272.7
43........................................................ 268.8
44........................................................ 264.1
45........................................................ 259.0
46........................................................ 254.0
47........................................................ 249.3
48........................................................ 244.8
49........................................................ 239.3
50........................................................ 233.8
51........................................................ 229.5
52........................................................ 225.4
53........................................................ 221.0
54........................................................ 216.2
55........................................................ 211.4
56........................................................ 206.6
57........................................................ 201.9
58........................................................ 197.2
59........................................................ 192.5
60........................................................ 187.9
61........................................................ 183.1
62........................................................ 177.9
63........................................................ 172.9
64........................................................ 167.8
65........................................................ 162.7
66........................................................ 157.7
67........................................................ 153.0
68........................................................ 148.1
69........................................................ 143.2
70........................................................ 138.3
71........................................................ 133.4
72........................................................ 128.6
73........................................................ 123.5
74........................................................ 118.4
75........................................................ 113.1
76........................................................ 107.9
77........................................................ 102.6
78........................................................ 97.9
79........................................................ 93.4
80........................................................ 88.5
81........................................................ 83.4
82........................................................ 78.4
83........................................................ 73.8
84........................................................ 69.4
85........................................................ 64.6
86........................................................ 60.3
87........................................................ 57.1
88........................................................ 54.6
89........................................................ 51.9
90........................................................ 48.7
------------------------------------------------------------------------
CSRS Present Value Factors Applicable to Annuity Payable Following an
Election Under Section 1043 of Public Law 104-106 (For Ages at
Calculation Below 40)
------------------------------------------------------------------------
Present
value of a
Age at calculation monthly
annuity
------------------------------------------------------------------------
17........................................................ 335.0
18........................................................ 332.8
19........................................................ 330.4
20........................................................ 328.0
21........................................................ 325.4
22........................................................ 322.9
23........................................................ 320.2
24........................................................ 317.5
25........................................................ 314.7
26........................................................ 311.8
27........................................................ 308.8
28........................................................ 305.7
29........................................................ 303.3
30........................................................ 302.1
31........................................................ 300.7
32........................................................ 298.1
33........................................................ 295.4
34........................................................ 292.9
35........................................................ 290.1
36........................................................ 287.2
37........................................................ 284.5
38........................................................ 281.5
39........................................................ 278.3
------------------------------------------------------------------------
U.S. Office of Personnel Management.
Kay Coles James,
Director.
[FR Doc. 02-11572 Filed 5-8-02; 8:45 am]
BILLING CODE 6325-50-P