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U.S. Code as of:
01/03/05
Section 8707. Employee deductions; withholding
(a) Subject to subsection (c)(2), during each period in which an
employee is insured under a policy purchased by the Office of
Personnel Management under section 8709 of this title, there shall
be withheld from the employee's pay a share of the cost of the
group life insurance and accidental death and dismemberment
insurance.
(b)(1) Subject to subsection (c)(2), whenever life insurance
continues after an employee retires on an immediate annuity or
while the employee is receiving compensation under subchapter I of
chapter 81 of this title because of disease or injury to the
employee, as provided in section 8706(b) of this title, deductions
for insurance shall be withheld from the employee's annuity or
compensation, except that, in any case in which the insurance is
continued as provided in section 8706(b)(3)(A) of this title, the
deductions shall not be made for months after the calendar month in
which the employee becomes 65 years of age.
(2) Notwithstanding paragraph (1) of this subsection, insurance
shall be so continued without cost (other than as provided under
section 8706(b)(3)(B)) to each employee who so retires, or
commences receiving compensation, on or before December 31, 1989.
(c)(1) The amount withheld from the pay, annuity, or compensation
of each employee subject to insurance deductions shall be at the
rate, adjusted to the nearest half-cent, of 66 2/3 percent of the
level cost as determined by the Office for each $1,000 of the
employee's basic insurance amount.
(2) An employee who is subject to withholdings under this section
and whose pay, annuity, or compensation is insufficient to cover
such withholdings may nevertheless continue insurance if the
employee arranges to pay currently into the Employees' Life
Insurance Fund, through the agency or retirement system that
administers pay, annuity, or compensation, an amount equal to the
withholdings that would otherwise be required under this section.
(d) If an agency fails to withhold the proper amount of life
insurance deductions from an individual's salary, compensation, or
retirement annuity, the collection of unpaid deductions may be
waived by the agency if, in the judgment of the agency, the
individual is without fault and recovery would be against equity
and good conscience. However, if the agency so waives the
collection of unpaid deductions, the agency shall submit an amount
equal to the sum of the uncollected deductions and related agency
contributions required under section 8708 of this title to the
Office for deposit to the Employees' Life Insurance Fund.
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