Benefit Bits Date: Thu, 12 Nov 1998 13:34:17 -0500 To: "USGS Employees" From: "Cindy S. Wylie" Subject: Benefit Bits In Reply Refer To: Mail Stop 601 MEMORANDUM (Supervisors, Managers, and Team Leaders: Please ensure that employees without access to e-mail receive a copy of this message). To: All USGS Employees From: Robert Hosenfeld Personnel Officer Subject: Benefit Bits Federal Employees Retirement System (FERS) Open Season As a reminder to employees, the FERS Open Season remains open until December 31, 1998. All employees currently covered under Civil Service Retirement System (CSRS) or CSRS Offset and some employees on time limited appointments are eligible to transfer to FERS during this open season. The Office of Personnel Management (OPM) established a web site which is specifically designed to assist employees during this open season period. The first part of the site will walk you through the FERS Transfer Handbook. The second part of the site is a new FERS Transfer Model that employees can use to compare and contrast benefits under both systems. The FERS Election Opportunity page can be accessed on the web at http://www.opm.gov/fers_election . Increase in Retirement Deductions Employees are reminded that the Balanced Budget Act of 1997 includes an increase in CSRS and FERS employees' deductions which will be effective on January 3, 1999. CSRS employees currently pay 7.0% into their retirement fund; the deduction will increase to 7.25%. FERS employees now pay 0.80% into the retirement system; the new deduction will increase to 1.05%. A CSRS Offset employee's deduction into CSRS will increase from 0.80% to 1.05%. Court Orders for the Federal Employees Group Life Insurance Public Law 105-205 enacted on July 22, 1998, changed the way that benefits are paid under the Federal Employees' Group Life Insurance (FEGLI) Program. The FEGLI law sets an order of precedence for payment of benefits following the death of an insured employee or annuitant. First in the order of precedence is a designated beneficiary. Until now, there has been no statutory limitation on changing designations. This new Public Law requires benefits to be paid in accordance with the terms of a court decree of divorce, annulment, or legal separation, or the terms of a court order or court-approved property settlement agreement relating to such a decree, regardless of whether the insured individual actually completes a designation form complying with the court order. The court order supersedes any prior designation of beneficiary made by the insured individual. If such a court order is in effect, the insured individual cannot change his/her designation of beneficiary form unless the person named in the court order agrees in writing or unless the court order is subsequently modified. For active employees, the court order must be submitted to your servicing personnel office for filing in the Official Personnel File (OPF). To avoid any possibility of fraud, a certified copy of the court order must be submitted for the record. The court order can be submitted by the insured individual, the ex-spouse, or the ex-spouse's attorney - it is irrelevant who submits the court order. This order must be received in the servicing personnel office on or after July 22, 1998, and before the insured individual's death. Any court order enacted prior to July 22, 1998, will not be considered valid. At the time of the insured individual's death, the court order is forwarded to the Office of Federal Employees' Group Life Insurance (OFEGLI), along with any other life insurance forms. When an employee retires and is eligible to continue FEGLI as an annuitant, any court order in the OPF will be forwarded to OPM with the retirement application and other life insurance forms on file. Employees should be aware that the servicing personnel offices do not have the authority to review the court orders and make a determination regarding the validity. This determination is made by OFEGLI at the time of the insured's death. If you have any questions regarding the above subjects, you should contact your servicing personnel office for assistance.