employee. In any case in which annuity or compensation is being paid to a payee in behalf of a retired employee, the payee shall make the election for the retired employee.

(b) (1) A retired employee may elect to participate in the program for self alone or for self and family.

(2) Survivors, if actually or constructively living in the same household, have only one right of election among them. The election shall be made by the payee. The fact that one payee is receiving annuity or compensation for all members of the family is prima facie evidence that they are living in the same household. The existence of more than one payee is prima facie evidence that each payee and the survivors in whose behalf the payee is receiving annuity or compensation constitute a separate household, and each payee may elect for the survivors in whose behalf he is receiving annuity or compensation, but where a family is receiving annuity or compensation through more than one payee, one payee, with the consent of the other payees, may elect for the whole family.

(3) A retired employee may not be covered under more than one election.

(4) A retired employee who is entitled to more than one annuity or to compensation and annuity is entitled to only one election.

(c) Each retired employee who elects to receive a Government contribution toward the cost of a private health benefits plan shall file with his election a certificate of the carrier, on the form prescribed by the Commission for the purpose, that he is a subscriber to a health benefits plan. The Commission, or the appropriate retirement office, at any time may require that a retired employee renew the certificate, or may take such other action as it considers desirable to verify the continuing eligibility of the retired employee to receive a Government contribution. The appropriate retirement office may suspend the Government contribution when there is a reasonable doubt of the retired employee's continuing eligibility to receive the Government. contribution.

(d) In the discretion of the retirement office, a representative of the retired employee having a written authorization to do so may elect for him.

(e) A person who was not eligible, during the months of March and April 1961, to elect to subscribe to the uniform plan or to receive a Government contri

bution toward the cost of a private health benefits plan, may apply to the appropriate retirement office when he becomes eligible. If the retirement office determines that he is eligible, it shall notify the retired employee that he is eligible to make an election in accordance with paragraphs (a) to (d) of this section within 60 days of the date of the notice. If the retirement office determines that a retired employee was unable, for cause beyond his control, to make an election within the time limits prescribed by this section, it shall notify the retired employee that he is eligible to make an election in accordance with paragraphs (a) to (d) of this section within 60 days of the date of the notice. Elections made under this paragraph are effective, for a retired employee receiving annuity and a survivor receiving compensation, on the first day of the third month following the month in which the retirement office receives the election. Withholdings and contributions are effective for months beginning on and after the first day of the second month following the month in which the retirement office receives the election. For any other retired ployee receiving compensation, changes of election made under this paragraph are effective on the first day of the third 4-week period following the 4-week period in which the Bureau of Employees' Compensation receives the election, and withholdings and contributions are effective beginning with the second 4week period following receipt of the election. This paragraph does not apply to retired employees who have been, at any time, covered by the election of another under this part.

em

(f) Retired employees and survivors who, on January 1, 1973, were enrolled for either basic coverage only or major medical coverage only of the Uniform Plan are, effective January 1, 1973, automatically enrolled in basic plus major medical coverage of the Uniform Plan. [33 F.R. 12516, Sept. 4, 1968, as amended at 37 F.R. 20845, Dec. 20, 1972]

§ 891.202 Change of election.

(a) When used in this section, "month" includes the 4-week period for which a retired employee (other than a survivor) receives compensation.

(b) A retired employee shall change his election in accordance with the following table:

an election not to participate on April 1, 1962, and the Government contribution is not added to the annuity or compensation accrued for March 1962. On July 1, 1962, the family is covered by the basic coverage of the uniform plan, and withholdings and contributions are made for the annuity or compensation accruing in June 1962.

Subpart C-Suspension and
Termination

§ 891.301

Suspension and termination.

(a) When used in this section, "month" includes the 4-week period for which a retired employee (other than a survivor) receives compensation.

(b) When compensation is entirely suspended or annuity is entirely waived or suspended, Government contributions are suspended. If the election is to subscribe to the uniform plan, and the annuity or compensation is suspended, or the annuity is waived to the extent that the retired employee's share of the cost cannot be withheld, withholdings and Government contributions are suspended, but the subscription continues.

(c) If the waiver or suspension covers 3 months or less, Government contributions and withholdings for the period of waiver or suspension shall be made when annuity payment is resumed. If the waiver or suspension covers more than 3 months, the retired employee's election is terminated effective at the end of the third month of waiver or suspension. A terminated election is renewed when annuity or compensation payment is resumed. When a terminated election is renewed pursuant to this paragraph, withholdings and Government contributions shall be made for the first 3 months of the waiver or suspension. Withholdings and Government contributions shall be made for annuity or compensation accruing after the election is renewed.

(d) If title of a retired employee to annuity or compensation is terminated, his eligibility under this part is terminated.

(e) If the eligibility of a retired employee is terminated and other members of the same family continue to be eligible under this part, the election of the former retired employee continues for the remainder of the family unless and until changed in accordance with § 891.202.

pay,

(a) The Commission shall through the retirement office, $3.50 monthly to each retired employee receiving annuity and to each survivor receiving compensation who elects to receive a Government contribution toward the cost of a private health benefits plan in which he is a subscriber for self alone, and $7.00 monthly to each retired employee receiving annuity and to each survivor receiving compensation who so elects toward the cost of a private health benefits plan in which he is a subscriber for self and family. The Commission shall pay, through the Bureau of Employees' Compensation $3.27 each 4-week period to each retired employee, other than a survivor, who is receiving compensation and who elects to receive a Government contribution toward the cost of a private health benefits plan in which he is a subscriber for self alone, and $6.53 each 4-week period to each who so elects toward the cost of a private health benefits plan in which he is a subscriber for self and family. The Commission shall not pay, in any case, more than the cost of the private health benefits plan each month or 4-week period, as the case may be.

(b) The Commission shall contribute to the cost of the uniform plan $3.50 monthly for each retired employee receiving annuity and each survivor receiving compensation, and $3.27 each 4-week period for any other retired employee receiving compensation, for an election for self alone; and $7.00 monthly for each retired employee receiving annuity and each survivor receiving compensation, and $6.53 each 4-week period for any other retired employee receiving compensation, for an election for self and family. Election to subscribe to the uniform plan constitutes agreement by the retired employee that the retirement office may withhold from his annuity or compensation his share of the cost of the plan, as provided by this part.

(c) The Government shall contribute to the Retired Federal Employees Health Benefits Fund 2 percent of the total Government contribution authorized by this section, for payment of expenses incurred by the Commission in administering this part.

§ 891.402 Withholdings.

The appropriate retirement office shall withhold from the annuity or compensation of each of its retired employees who has elected to subscribe to the uniform plan so much as is necessary to pay his share of the cost of his subscription. The withholdings shall be forwarded, in accordance with the Commission's instructions, to the Retired Employees Health Benefits Fund.

Subpart E-Standards for Uniform Plan and Carrier

§ 891.501

Standards for uniform plan. The uniform plan shall be open to all eligible retired employees and members of their families, without regard to race, sex, health status, or age. It shall not deny or limit benefits because of any preexisting condition. It shall offer a choice among basic coverage only, major medical coverage only, and basic plus major medical coverage. It shall provide a 31-day extension of coverage on termination of subscription other than by change of election or termination of the contract. A person confined in hospital for care or treatment on the 31st day of the extension of coverage shall be entitled to continuation of the benefits of the contract during the continuance of the confinement, but not beyond the 60th day following the end of the extension of coverage. The uniform plan shall be experience-rated.

§ 891.502 Standards for carrier of uniform plan.

In the most recent year for which data are available, the carrier of the uniform plan shall have made at least 1 percent of all group health insurance benefit payments in the United States. If the carrier is an insurance company, it must be licensed to issue group health insurance in all the States of the United States and the District of Columbia.

The purpose of the grant program is to assist State and local governments by strengthening their staffs through improved personnel administration and through training and development of their employees and officials consistent with the merit principles stated in section 2 of the Act.

§ 900.102 Definitions.

In this part:

(a) "Act" means the Intergovernmental Personnel Act of 1970, 84 Stat. 1909.

(b) "Other organization" has the meaning given that term by section 304 of the Act.

(c) "State", "local government", and "general local government" have the meaning given to those terms by section 502 and section 506(b) (5) of the Act. § 900.103 Advisory guidelines and information.

Information for the fiscal administration of grants awarded under the Act and this part and for grant application procedures are in the "IPA Grant Administration Handbook" and the "Guidelines for the IPA Grant Program" which are available from the Bureau of Intergovernmental Personnel Programs, U.S. Civil Service Commission, 1900 E. Street, NW., Washington, DC 20415, or from the regional offices of the Commission at the following locations:

Atlanta Merchandise Mart, 240 Peachtree Street NW., Atlanta, GA 30303.

Post Office and Courthouse Building, Boston, Mass. 02109.

Main Post Office Building, 433 West Van Buren Street, Chicago, IL 60607.

1100 Commerce Street, Dallas, TX 75202. Building 20, Denver Federal Center, Denver, Colo. 80225.

Federal Building, 26 Federal Plaza, New
York, NY 10007.
Customhouse, Second and Chestnut Streets,
Philadelphia, PA 19106.

3004 Federal Office Building, First Avenue and Madison Street, Seattle, WA 98104. Federal Building, Post Office Box 36010, 450 Golden Gate Avenue, San Francisco, CA 94102.

1256 Federal Building, 1520 Market Street, St. Louis, MO 63103.

§ 900.104 Administrative organization.

(a) Bureau of Intergovernmental Personnel Programs. The Bureau of Intergovernmental Personnel Programs of the Commission has, under the direction of the Executive Director, the responsibility of administering the programs authorized by the Act.

(b) Regional office organization. Each regional office of the Commission has, under the direction of the regional director, a Division of Intergovernmental Personnel Programs which is responsible for administering the programs authorized by the Act within the jurisdiction of the region.

A grant under the Act may be used: (a) To strengthen personnel administration of States and local governments;

(b) to train and educate professional, administrative, and technical employees and officials of State and general local governments;

(c) to support programs providing for Government Service Fellowships for State and local government personnel; and

(d) to improve particular aspects of State and local government personnel administration as authorized by the Act. § 900.202 Grant procedures.

(a) A grant application shall be submitted to the regional office of the Commission having jurisdiction over the area where the party submitting the application is located as specified in the "Guidelines for the IPA Grant Program." When the party submitting the application is located in the metropolitan area of Washington, D.C., the grant application shall be submitted to the Bureau of Intergovernmental Personnel Programs, U.S. Civil Service Commission, 1900 E Street NW., Washington, DC 20415.

(b) An application submitted by a combination of States or general local governments which are located in dif

ferent Commission regions should be sent to the regional office in whose area the specific jurisdiction which will have primary responsibility and authority for the administration of the approved program and project is located.

§ 900.203 Grant administration.

(a) A grantee shall make such reports as may be requested by the Commission under section 504 of the Act. The Commission reserves the right to audit and to evaluate performance or program success.

(b) A grantee shall maintain such fiscal control and fund accounting procedures as required by the Commission, and shall grant access to records as provided by section 505 of the Act.

Subpart C-Funds

§ 900.301 Allocation of funds.

(a) Formula. The Commission shall allocate the total amount of funds available for grants as required by section 506 of the Act; and shall publish in the FEDERAL REGISTER the formulae required by sections 506(b) (1) and (2) of the Act. (b) Effect of allocation. Allocations made under this section do not constitute a grant of funds; they are a statement of the initial availability of grant funds to a State and of the percentage of each State's allocation initially available to meet the needs of the State government and of local governments in the State.