Except as provided in § 870.202, each appointive or elective officer or employee (referred to in this part as employee) in or under the executive, judicial, or legislative branch of the United States Government, including a Government owned or controlled corporation, and of the municipal government of the District of Columbia shall, at the time and subject to the conditions prescribed in this part, be insured for an amount of group life and accidental death and dismemberment insurance as specified in §§ 870.301, 870.602, and 870.702.

§ 870.202 Exclusions.

(a) Employees, as defined in the Federal Employees' Group Life Insurance Act of 1954, as amended, in the following groups are excluded from the application of this part:

(1) An employee serving under appointment limited to 1 year or less, except an employee so appointed for full-time employment or part-time employment with a regular tour of duty, without break in service or after a separation of 3 days or less, following service in which he was insured, and an acting postmaster.

(2) An employee whose employment is of uncertain or purely temporary duration, or who is employed for brief periods at intervals, and an employee who is expected to work less than 6 months in each year, except an employee having a career-conditional or career appointment, or appointed under schedule B of Part 213 of this chapter, who is employed under a cooperative work-study program of at least 1 year's duration which requires the employee to be in pay status during not less than one-third of the total time required for completion of the program.

(3) An intermittent employee-a nonfull-time employee without a prearranged regular tour of duty.

(4) An employee whose salary, pay, or compensation on an annual basis is $12 a year or less.

(5) A beneficiary or patient employee in a Government hospital or home.

(6) An employee paid on a contract or fee basis, except an employee who is a citizen of the United States who is appointed by a contract between the employee and the Federal employing authority which requires his personal service and is paid on the basis of units of time.

(7) An employee paid on a piecework basis, except one whose work schedule provides for full-time service or parttime service with a regular tour of duty.

(b) The Commission shall make final determination regarding applicability of the above classifications to a specific employee or group of employees.

[32 F.R. 12937, Sept. 12, 1967]

§ 870.203 Effective dates of insurance

coverage.

(a) (1) An employee appointed, or transferred from a position wherein he is not insured, is insured at the time he actually enters on duty on his first day in a pay status, unless on or before that day he files with his employing office a "Waiver of Life Insurance Coverage", or had previously filed such waiver which remains uncanceled.

(2) An employee transferring from a position wherein he is insured to another position wherein he is not excluded from coverage is insured at the beginning of the effective date of his transfer, unless on or before that day he files a "Waiver of Life Insurance Coverage” with his new employing office.

(b) An employee who returns to duty and is in a pay status after a period of more than 12 months of continuous nonpay status is insured at the time he actually enters on duty on his first day in a pay status, unless on or before that day he files with his employing office a "Waiver of Life Insurance Coverage", or had previously filed such waiver which remains uncanceled.

(c) An employee serving in cooperation with a non-Federal agency paid in whole or in part from non-Federal funds may not be insured prior to such date as the Commission may prescribe for the group of which he is a member following Commission approval of arrangements which are placed into effect and provide (1) that the required withholdings and contributions will be made from Federally controlled funds and timely deposited into the Employees' Life Insurance Fund, or (2) that the cooperating non-Federal agency will, by written agreement with the Federal agency,

(a) An insured employee may at any time cancel his insurance by filing with his employing office a "Waiver of Life Insurance Coverage". The waiver shall be effective and the employee's insurance ceases at the end of the pay period in which the waiver is received in the employing office.

(b) An employee who has filed "Waiver of Life Insurance Coverage" may cancel the waiver and become insured if (1) he is under age 50, (2) at least 1 year has elapsed since the effective date of such waiver, and (3) he furnishes satisfactory evidence of insurability

(c) An employee who has complied with paragraph (b) of this section is insured at the time he actually enters on duty on his first day in a pay status in a position wherein he is not excluded from insurance by law or regulation, following the approval of his Request for Insurance by the Office of Federal Employees Group Life Insurance. The approval is revoked automatically and the employee is not insured unless he acquires such a duty and pay status effective within 31 days following the date of such approval.

§ 870.205 Appeals.

(a) An appeal may be taken to the Commission's Board of Appeals and Review from the final action or order of the Bureau of Retirement and Insurance denying insurance coverage, when the denial affects the rights or interest of any person or of the United States under the Federal Employees' Group Life Insurance Act.

(b) The time for filing an appeal is not later than 6 months from the date of mailing notice of the final action or order of which complaint is made. Subpart C-Amount of Insurance § 870.301

ance.

Amount of employee's insur

(a) The amount of an employee's life insurance is equal to the current rate of his annual compensation if a multiple of $1,000, otherwise to the next higher $1,000, but not exceeding $20,000.

(a) During any period in any part of which an insured employee is in a pay status there shall be withheld from each biweekly salary payment of such employee the sum of 25 cents for each $1,000 of his group life insurance. The amount withheld from the salary payment of an employee who is paid on other than a biweekly basis is determined at a proportionate rate, adjusted to the nearest cent.

(b) The amount withheld from the salary of an insured employee whose annual salary is paid during a period shorter than 52 workweeks is the sum obtained by converting the biweekly rate of 25 cents for each $1,000 of his group life insurance to an annual rate and prorating the annual rate over the number of installments of pay regularly paid during the year.

(c) The amount withheld from the salary payment of an insured employee whose amount of insurance changes during a pay period is based on the last amount of insurance in force during the pay period.

(d) For each period in which an employee is insured there shall be contributed from the respective appropriation or fund which is used for the payment of his salary, wage, or other compensation (or, in the case of an elected official, from such appropriation or fund as may be available for payment of other salaries of the same office or establishment) an amount equal to one-half the

amount withheld from the employee's salary, wage, or other compensation.

[29 F.R. 6847, May 26, 1964]

Subpart E-Termination and
Conversion

§ 870.501

Cessation and conversion of insurance coverage.

(a) Except as provided in §§ 870.601 and 870.701, the insurance of an insured employee ceases on the date of his separation from the service, subject to a 31-day extension of life insurance coverage.

(b) The insurance of an insured employee who moves without a break in service to a position wherein he is excluded from insurance ceases on his last day on the roll in the former position, subject to a 31-day extension of life insurance coverage.

(c) Except as provided in paragraph (e) of this section and in §§ 870.601 and 870.701, the insurance of an insured employee in a nonpay status continues in force without cost to the employee, and ceases, subject to a 31-day extension of life insurance coverage, at the end of 12 months of continuous nonpay status.

(d) The insurance of an insured employee who enters on active duty or active duty for training as a member of a uniformed service ceases, subject to a 31-day extension of life insurance coverage, on the day preceding his entrance on such duty, unless the period of such duty is covered by military leave with pay from his civilian position. The terms "active duty", "active duty for training", and "member of a uniformed service", have the meanings assigned to them by section 102 of the Servicemen's and Veterans' Survivor Benefits Act, approved August 1, 1956. This cessation of insurance coverage does not operate with respect to insurance granted prior to January 1, 1957, to commissioned officers of the Coast and Geodetic Survey or of the Regular or Reserve Corps of the Public Health Service.

(e) During the 31-day extension of life insurance coverage under this section, an individual may, upon application and without medical examination, convert all or any part of his group life insurance to an individual policy of life insurance at rates applicable to his attained age and class of risk unless, within 3 calendar days after the date his in

surance ceased, he returns to a position wherein he is not excluded from coverage.

Subpart F-Retired Employees

§ 870.601 Eligibility for group life in

surance.

(a) The life insurance of an insured employee who is separated from service shall be continued or reinstated without cost to him if he (1) is entitled to retirement on immediate annuity under a system legally established for the retirement of civilian employees of the Federal or District of Columbia Governments, (2) has had at least 12 years of creditable service or retires for disability, (3) has met all requirements for annuity (including filing of application where necessary), whether or not final administrative action has been taken, and (4) has not exercised his right of conversion to an individual policy of life insurance under § 870.501(e).

(b) An immediate annuity is one which begins to accrue not later than 1 month after the date the insurance would otherwise cease.

(c) Creditable service is (1) civilian service allowable under the provisions of section 3 of the Civil Service Retirement Act, as amended, and (2) honorable active service performed as a commissioned officer or enlisted man in the Army, Navy, Air Force, Marine Corps, or Coast Guard of the United States if the individual at retirement has at least 5 years of such civilian service.

(d) If the annuity of an insured retired employee is terminated under any applicable law or regulation, his life insurance as a retired employee ceases on the date of such termination.

(e) If an insured retired employee is appointed to a position wherein he is not excluded from insurance by law or regulation, the amount of his life insurance as a retired employee is suspended on the day preceding the first day in a pay status under the appointment, and unless he gives written notice that he desires not to be insured, is automatically reinstated upon his death in such amount as may be necessary to assure that the total of all insurance benefits paid after his death is not less than the amount which would have been paid if he had not been reemployed.

[28. F.R. 10096, Sept. 14, 1963, as amended at 31 F.R. 15233, Dec. 6, 1966]

The life insurance of an insured employee who is separated from the service or completes 12 months of continuous nonpay status, and who is receiving benefits under the Federal Employees' Compensation Act because of disease or injury to himself and is held by the Department of Labor to be unable to return to duty, shall be continued or reinstated without cost to him provided he has not, on or after May 28, 1956, exercised his right of conversion under § 870.501(e). Such continued or reinstated insurance shall cease, with no 31-day extension of life insurance coverage and no right of conversion, upon termination of the employee's benefits under the Federal Employees' Compensation Act or upon a finding by the Department of Labor that he is able to return to duty.

§ 870.702 Amount of group life insur

ance.

The amount of life insurance of an employee whose insurance is continued while he is receiving benefits under the Federal Employees' Compensation Act because of disease or injury to himself and is held by the Department of Labor to be unable to return to duty is the amount based on his annual compensation at the date his insurance would otherwise have ceased because of his separation from the service or completion of 12 months of continuous nonpay status.

Subpart H-[Reserved] Subpart 1-Order of Precedence and

Designation of Beneficiary

§ 870.901 Designation of beneficiary.

(a) The designation of beneficiary shall be in writing, signed, and witnessed, and received in the employing office (or, in the case of (1) a retired employee and (2) an employee whose insurance is continued while he is receiving benefits under the Federal Employees' Compensation Act because of disease or injury to himself and who is held by the Department of Labor to be unable to return to duty, in the Commission) prior to the death of the designator.

(b) No change or cancellation of beneficiary in a last will or testament, or in any other document not witnessed and filed as required by the regulations in this part, shall have any force or effect. (c) A witness to a designation of beneficiary is ineligible to receive payment as a beneficiary.

(d) Any person, firm, corporation, or legal entity (except an agency of the Federal or District of Columbia Governments) may be named as beneficiary.

(e) A change of beneficiary may be made at any time and without the knowledge or consent of the previous beneficiary, and this right cannot be waived or restricted.

(f) A designation of beneficiary is automatically canceled (1) on the day the employee transfers (except by mass transfer) to another agency, or (2) 31 days after the employee ceases to be insured.

86-005-68- -17

(1) Terms defined by section 8901 of title 5, United States Code, have the meanings there set forth.

(2) "Cancellation" means the act of filing a health benefits registration form terminating enrollment in a health benefits plan and electing not to be enrolled for the future by an enrolled employee or annuitant who is eligible to continue enrollment.

(3) "Change of enrollment" means the registration of an enrolled employee or annuitant to be enrolled for another plan or option, or for a different type of coverage (self alone or self and family), from that for which then enrolled.

(4) "Eligible" means eligible under the law and this part to be enrolled.

(5) "Employing office" means the office of an agency to which jurisdiction and responsibility for health benefits actions for the employee concerned have been delegated. For enrolled annuitants who are not also eligible employees, the office which has authority to approve payment of annuity or workmen's com

132 F.R. 14887, Oct. 27, 1967.

pensation for the annuitant concerned is the employing office.

(6) "Immediate annuity" means an annuity which begins to accrue not later than 1 month after the date enrollment under a health benefits plan would cease for an employee or member of family if he were not entitled to continue enrollment as an annuitant. Notwithstanding the foregoing, an annuity which commences on the birth of the posthumous child of an employee or annuitant is an immediate annuity.

(7) "Option" means a level of benefits. It does not include distinctions as to whether the members of the family are covered.

(8) "Pay period" means the biweekly pay period established pursuant to section 5504 of title 5, United States Code, for the employees to whom that section applies, the regular pay period for employees not covered by that section; and the period for which a single installment of annuity is customarily paid for annuitants.

(9) "Register" means to file with the employing office a properly completed health benefits registration form, either electing to be enrolled in a health benefits plan or electing not to be enrolled. "Register to be enrolled" means to register an election to be enrolled. "Enrolled" means to be enrolled in a health benefits plan approved by the Commission under this part.

(10) "Regular tour of duty" means a work schedule, prescribed in advance to continue indefinitely or for at least 6 months, of a certain number of hours or other time units in a day, week, biweekly pay period, month, or year.

(b) Whenever, in this part, a period of time is slated as a number of days or a number of days from an event, the period is computed in calendar days, excluding the day of the event. Whenever, in this part, a period of time is defined by beginning and ending dates, the period includes the beginning and ending dates.

[29 F.R. 14711, Oct. 29, 1964, as amended at 32 F.R. 14887, Oct. 27, 1967] § 890.102

Coverage.

(a) Each employee, other than those excluded by paragraph (c) of this section, is eligible to be enrolled in a health benefits plan at the time and under the conditions prescribed in this part.