[Federal Register: July 2, 1997 (Volume 62, Number 127)] [Proposed Rules] [Page 35693-35696] ===================================================================== Proposed Rules Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains notices to the public of the proposed issuance of rules and regulations. The purpose of these notices is to give interested persons an opportunity to participate in the rule making prior to the adoption of the final rules. ===================================================================== [[Page 35693]] ===================================================================== ----------------------------------------------------------------------- OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 880 RIN 3206-AH75 Retirement and Insurance Benefits When an Annuitant Is Missing AGENCY: Office of Personnel Management. ACTION: Proposed rule. ----------------------------------------------------------------------- SUMMARY: The Office of Personnel Management (OPM) is proposing regulations to establish a uniform standard that OPM will use in its administration of retirement and insurance benefits in cases in which an annuitant disappears. These regulations would establish procedures to determine the status of the missing annuitant and to allow the missing annuitant's dependents to obtain benefits until the missing annuitant's status is resolved. DATES: Comments must be received on or before September 2, 1997. ADDRESSES: Send comments to John E. Landers, Chief, Retirement Policy Division; Retirement and Insurance Service; Office of Personnel Management; P.O. Box 57; Washington, DC 20044; or deliver to OPM, Room 4351, 1900 E Street NW., Washington, DC. FOR FURTHER INFORMATION CONTACT: Harold L. Siegelman, (202) 606-0299. SUPPLEMENTARY INFORMATION: These regulations are intended to establish OPM's procedures for making payments of annuity during a period when an annuitant is missing and until the annuitant is either found or officially determined to have died. The regulations are aimed at providing continuing support to the family of a missing annuitant, while balancing the interest of the Government in protecting the retirement system from unwarranted disbursements. These cases are uncommon, but about once a year a case arises under Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) in which an annuitant disappears. In some cases, the circumstances of the disappearance are such that local authorities are able to declare the missing annuitant legally dead (e.g., victims of a plane crash with no survivors but bodies are not identifiable) and we are able to begin survivor benefit payments to the affected families, but, in other cases, a long waiting period is required before a missing annuitant can be declared legally dead. However, over the years, our experience has been that such missing individuals are not found alive. Accordingly, the proposed regulations would provide for continuing payment of the amount that would be payable as survivor annuity if the missing annuitant were dead. Subpart A contains information of a general nature, including a description of the type of case covered by the regulations, cross references to related regulations, and definitions of terms used in the regulations. Section 880.101 limits the scope of these regulations to cases involving the disappearance of individuals who are already retired. In the case of disappearance of a separated employee who has not applied for annuity, we have no authority to pay an employee annuity, as determined by the United States Court of Appeals for the Federal Circuit in the case of Oshiver v. Office of Personnel Management, 896 F.2d 540 (Fed. Cir. 1990). The court found that no payments can be made until the individual personally files an application. Accordingly, section 880.101 excludes from the coverage of the regulations any case in which the former employee has not applied for retirement. Section 880.102 is a research aid providing references to related regulations. Section 880.103 defines terms used in this part. Subpart B establishes the procedures that we will follow in missing annuitant cases. Section 880.202 establishes that the Retirement and Insurance Service is the component of OPM that will receive and act on any missing annuitant report. Section 880.203 establishes the procedure that OPM will follow to determine that a retiree is missing and assigns to the Retirement and Insurance Service the responsibility for suspending payment and providing notice to affected individuals. That section also specifies the types of information that the affected individual will receive in the suspension notice. Section 880.204 provides for retroactive restoration of the annuity and an offset for any disbursements made during the disappearance, in the event that the annuitant is found. That section also provides that we will consider issues of competency of the previously missing annuitant and if necessary require a representative payee be appointed before restoring the annuity. Section 880.205 establishes the standard of evidence required to prove the death of a missing annuitant before we will authorize any form of lump-sum death benefits under CSRS or FERS or a life insurance payment. Although in routine CSRS and FERS death cases we accept other forms of evidence to establish the death of an annuitant, in missing annuitant cases before paying any lump-sum death benefit or life insurance, we will require documentary evidence that an official with legal authority to make determinations that an individual is legally dead has made such a determination for the missing annuitant. The individual claiming that the missing annuitant is dead has the burden of proving that the official determining death is authorized to make such determinations. We expect that such proof will generally consist of appropriate State or other official documents authorizing the official to make such determinations. Section 880.206 establishes a uniform date of death for the cases covered by these regulations. This rule is needed to prevent unjustified variations in benefits depending on local law. Under these regulations, the date of disappearance will be used as the date of presumed death. Section 880.207 establishes that we will review each missing annuitant case after a determination of death to make certain that the proper benefits have been paid and premiums collected consistent with the date of death established under section 880.206. Subpart C establishes the methodology that we will use to determine benefit levels while the annuitant is missing. Section 880.302 provides for payment of CSRS and FERS survivor annuity as though the missing [[Page 35694]] annuitant were dead. In the usual missing annuitant case, the effect of this rule is that the spouse will be paid at the survivor rate--55 percent (CSRS) or 50 percent (FERS) of the missing annuitant's benefit. However, if the missing annuitant had children who would be eligible for a survivor annuity, we would make payments at the child annuity rate as well. Also, if a former spouse has been receiving a portion of the a> --------------------------------------------------------------------------- Transfer interrupted!