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U.S. Code as of:
01/03/05
Section 8714d. Option to receive "living benefits"
(a) For the purpose of this section, an individual shall be
considered to be "terminally ill" if such individual has a medical
prognosis that such individual's life expectancy is 9 months or
less.
(b) The Office of Personnel Management shall prescribe
regulations under which any individual covered by group life
insurance under section 8704(a) may, if such individual is
terminally ill, elect to receive a lump-sum payment equal to -
(1) the full amount of insurance under section 8704(a) (or
portion thereof designated for this purpose under subsection
(d)(4)) which would otherwise be payable under this chapter (on
the establishment of a valid claim) -
(A) computed based on a date determined under regulations of
the Office (but not later than 30 days after the date on which
the individual's application for benefits under this section is
approved or deemed approved under subsection (d)(3)); and
(B) assuming continued coverage under this chapter at that
time;
reduced by
(2) an amount necessary to assure that there is no increase in
the actuarial value of the benefit paid (as determined under
regulations of the Office).
(c)(1) If a lump-sum payment is taken under this section -
(A) no insurance under the provisions of section 8704(a) or (b)
shall be payable based on the death or any loss of the individual
involved, unless the lump-sum payment represents only a portion
of the total benefits which could have been taken, in which case
benefits under those provisions shall remain in effect, except
that the basic insurance amount on which they are based -
(i) shall be reduced by the percentage which the designated
portion comprised relative to the total benefits which could
have been taken (rounding the result to the nearest multiple of
$1,000 or, if midway between multiples of $1,000, to the next
higher multiple of $1,000); and
(ii) shall not be subject to further adjustment; and
(B) deductions and withholdings under section 8707, and
contributions under section 8708, shall be terminated with
respect to such individual (or reduced in a manner consistent
with the percentage reduction in the individual's basic insurance
amount, if applicable), effective with respect to any amounts
which would otherwise become due on or after the date of payment
under this section.
(2) An individual who takes a lump-sum payment under this section
(whether full or partial) remains eligible for optional benefits
under sections 8714a-8714c (subject to payment of the full cost of
those benefits in accordance with applicable provisions of the
section or sections involved, to the same extent as if no election
under this section had been made).
(d)(1) The Office's regulations shall include provisions
regarding the form and manner in which an application under this
section shall be made and the procedures in accordance with which
any such application shall be considered.
(2) An application shall not be considered to be complete unless
it includes such information and supporting evidence as the
regulations require, including certification by an appropriate
medical authority as to the nature of the individual's illness and
that the individual is not expected to live more than 9 months
because of that illness.
(3)(A) In order to ascertain the reliability of any medical
opinion or finding submitted as part of an application under this
section, the covered individual may be required to submit to a
medical examination under the direction of the agency or entity
considering the application. The individual shall not be liable for
the costs associated with any examination required under this
subparagraph.
(B) Any decision by the reviewing agency or entity with respect
to an application for benefits under this section (including one
relating to an individual's medical prognosis) shall not be subject
to administrative review.
(4)(A) An individual making an election under this section may
designate that only a limited portion (expressed as a multiple of
$1,000) of the total amount otherwise allowable under this section
be paid pursuant to such election.
(B) A designation under this paragraph may not be made by an
individual described in paragraph (1) or (2) of section 8706(b).
(5) An election to receive benefits under this section shall be
irrevocable, and not more than one such election may be made by any
individual.
(6) The regulations shall include provisions to address the
question of how to apply section 8706(b)(3)(B) in the case of an
electing individual who has attained 65 years of age.
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