break in service may elect basic insurance coverage upon application to his or her employing office before March 7, 1984.

(g)(1) An open enrollment period will be held from June 1 through July 1, 1985, during which time employees otherwise eligible for coverage may cancel their existing waivers of coverage by affirmatively electing to be insured on a form designated by OPM.

(2) An employing office may make a determination, within 6 months after the June 1 through July 1, 1985 open enrollment period, that an employee was unable, for cause beyond his or her control, to cancel his or her then existing waiver of coverage by affirmatively electing to be insured during the 1985 open enrollment period. The employee shall be permitted to submit an affirmative election of coverage within 31 days after he or she is advised of that determination. Basic life insurance coverage in that case is retroactive to the first pay period beginning on or after August 1, 1985, which immediately follows a pay period during which the employee was in a pay and duty status for a sufficient length of time, as specified in § 870.203(d), to acquire coverage. Failure on the part of the employee to file an election within the 31 days prescribed in this paragraph shall be deemed a waiver of all coverage.

[49 FR 3034, Jan. 25, 1984, as amended at 50 FR 26688, June 28, 1985; 51 FR 21497, June 13, 1986]

(a) Who may file. An employee or annuitant may request OPM to reconsider an agency decision (for employees) or an initial decision of OPM (for annuitants) denying basic insurance coverage.

(b) Agency decision. A request for reconsideration of an agency decision must be filed within 30 calendar days from the date of the written decision stating the right to reconsideration by OPM. OPM may extend the time limit as provided in paragraph (e) of this section. An OPM decision in response to a request for reconsideration of an agency decision is a final decision, not an initial decision as described in paragraph (c) of this section.

(c) Initial OPM decision. An OPM decision for an annuitant shall be considered an initial decision as used in paragraph (a) of this section when rendered by OPM in writing and stating the right to reconsideration. However, an initial decision rendered at the highest level of review available within OPM will not be subject to reconsideration.

(d) Reconsideration. A request for reconsideration of an initial OPM decision must be made in writing, must inIclude the claimant's name, address, date of birth, claim number, if applicable, and reasons for the request.

(e) Time limit. A request for reconsideration of an initial OPM decision must be filed within 30 calendar days from the date of the initial decision. OPM may extend the time limit for filing when the individual shows that he/she was not notified of the time limit or that he/she was prevented by circumstances beyond his/her control from making the request within the time limit.

(f) Final decision. After reconsideration, OPM shall issue a final decision which shall be in writing, and shall fully set forth the findings and conclusions of OPM.

[49 FR 3034, Jan. 25, 1984, as amended at 52 FR 25198, July 6, 1987]

Subpart C-Amount of Insurance

§ 870.301 Basic insurance amount (BIA).

(a) An employee's basic insurance amount (BIA) is the greater of (1) his/ her annual rate of basic pay, rounded to the next higher multiple of $1,000, plus $2,000, or (2) $10,000. However, in no event may the BIA be more than the annual rate of pay for positions at Level II of the Executive Schedule under section 5313 of title 5, U.S.C., rounded to the next higher thousand, plus $2,000. The BIA of an individual who is entitled to continue basic life insurance coverage as an annuitant or compensationer is the BIA in effect at the time the insurance to which he/ she is entitled as an employee would stop under § 870.501.

(b) Effective on the first day of the first pay period beginning on or after October 1, 1981, the amount of an em

(a) An insured employee's annual pay is his/her annual rate of basic pay as fixed by law or regulation, except that annual pay for this purpose shall include premium pay under section 5545(c)(1) of title 5, United States Code, and, for a law enforcement officer as defined under 5 U.S.C. 8331(20) and § 831.903 of this chapter, premium pay under 5 U.S.C. 5545(c)(2).

(b) A pay rate of other than annual salary is converted to an annual rate by multiplying the prescribed rate by the number of pay units in a 52-week work year.

(c) The annual pay for a part-time employee is his/her basic pay applicable to his/her tour of duty in a 52week work year.

(d) The annual pay for an employee who legally and concurrently serves in more than one position, other than as a part-time flexible schedule employee in the Postal Service, is the sum of the annual basic pay fixed by law or regulation for each position.

Subpart D-Withholdings and Contributions

§ 870.401 Withholdings and contributions. (a) During each pay period in which an insured employee is in pay status for any part of the period, $0.185 for each $1,000 of the employee's BIA shall be withheld from the biweekly pay of the employee. The amount withheld from the pay of an employee

who is paid on other than a biweekly basis is determined at a proportionate rate, adjusted to the nearest one-tenth of one cent.

(b) The amount withheld from the pay of an insured employee whose annual pay is paid during a period shorter than 52 workweeks is the sum obtained by converting the biweekly rate of $0.185 for each $1,000 of the employee's BIA 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 pay of an insured employee whose BIA changes during a pay period is based on the last BIA 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/her pay (or, in the case of an elected official, from such appropriation or fund as may be available for payment of other pay of the same office or establishment) an amount equal to one-half the amount withheld from the employee's pay.

(e) Notwithstanding the preceding paragraphs of this section, the United States Postal Service contributes the full cost of basic insurance, that is, the sum of the amounts otherwise to be withheld and contributed under paragraphs (a), (b), (c), and (d) of this section, for each period in which an employee of the United States Postal Service is insured.

(f)(1) Except as provided under paragraph (g) of this section, an insured person who elects continued basic life insurance coverage during receipt of annuity or compensation payments as provided under § 870.601(c)(2) or § 870.701(c)(2) (maximum reduction of 75 percent after age 65) shall have withheld from his/her payments basic life insurance withholdings at the monthly rate (for annuitants) of $0.4008 for each $1,000 of the BIA or at the weekly rate (for compensationers) of $0.0925 for each $1,000 of the BIA.

(2) An insured person who elects continued basic life insurance coverage during receipt of annuity or compensation payments as provided under

amount required under § 841.503 of this chapter; and

(3) For service described in § 846.302(b), the amount by which the amount contributed exceeds 1.3 percent of basic pay.

(c) A refund made under this section is payable with interest computed as prescribed under § 831.105 (d) and (e) of this chapter. Interest is payable regardless of the length of the period of service for which refund is being made or the total amount of service the employee has.

(d) A refund described in this section is payable upon the receipt of an application by OPM or its designee.

be brought against the insurance company.

§ 870.102 Correction of an error, mistake, or omission.

OPM's Associate Director for Compensation or his/her designee may order correction of an error, mistake, or omission upon a showing satisfactory to the Associate Director or his/ her designee that it would be against equity and good conscience not to do

So.

§ 870.103 Definitions.

“Annuitant” means a former employee entitled to an annuity under a retirement system established for employees.

“Assign” and “assignment” refer to a judge's irrevocable transfer to another person of all incidents of ownership of FEGLI coverage (except family optional insurance).

"Assignee" means the person to whom a judge irrevocably transfers ownership of basic life insurance and, if applicable, standard optional life insurance and additional optional life in

surance.

"Compensation" means compensation under subchapter I of chapter 81 of title 5, United States Code, which is payable because of an on-the-job injury or disease.

"Compensationer" means an employee or former employee who is entitled to compensation and whom the Department of Labor determines is unable to return to duty.

"Employee" means an individual who is an "employee" as defined by section 8701 of title 5, United States Code.

"Employing office" means the office of the agency to which jurisdiction and responsibility for life insurance actions for a judge have been delegated.

(a) For judges of the following courts, the employing office is the Administrative Office of the United States Courts:

(1) All United States Courts of Appeals;

(2) All United States District Courts; (3) The Court of International Trade;

(4) The Claims Court; and

(5) The District Courts in Guam, the Northern Mariana Islands, and the Virgin Islands.

(b) For judges of the United States Court of Military Appeals, the employing office is the Washington Headquarters Services.

(c) For judges of the United States Tax Court, the employing office is the United States Tax Court.

“Judge” means an individual appointed as a Federal justice or judge under Article I or Article III of the Constitution. Administrative law judges, bankruptcy judges, and magistrates are not judges for purposes of assignment of FEGLI coverage.

"OPM" means the Office of Personnel Management.

"OWCP" means the Office of Workers' Compensation Programs, U.S. Department of Labor, which administers subchapter I of chapter 81 of title 5, United States Code.

"Person” means an individual, corporation, or a trustee.

"Service" means civilian service which is creditable under subchapter III of chapter 83 of title 5, United States Code.

"Underdeduction" means a failure to withhold the required amount of life insurance deductions from an individual's pay, annuity, or compensation. This definition includes both nondeductions (when none of the required amount was withheld) and partial deductions (when only part of the required amount was withheld). Withholdings are not required while an individual is in a nonpay status; therefore, the nonpayment of premiums in this instance does not result in an underdeduction.

[49 FR 3034, Jan. 25, 1984, as amended at 50 FR 8096, Feb. 28, 1985; 51 FR 39362, Oct. 28, 1986; 52 FR 3398, Feb. 4, 1987]

Subpart B-Coverage

§ 870.201 Coverage.

Except as provided in § 870.202, each employee shall, at the time and subject to the conditions prescribed in this part, be insured for an amount of basic insurance as specified in §§ 870.301, 870.602, and 870.702.

(a) Employees in the following groups are excluded from the application of this part:

(1) An employee serving under an appointment limited to one year or less, except: (i) 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 three days or less, following service in which he/she was insured, (ii) an acting postmaster, and (iii) a Presidential appointee appointed to fill an unexpired term.

(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 six months in each year, except for an employee who is employed under an OPM-approved career-related workstudy program under Schedule B of at least one year's duration and who is expected to be in a pay status for at least one-third of the total period of time from the date of the first appointment to the completion of the work-study program.

(3) An intermittent employee-a non-full-time employee without a regularly scheduled tour of duty, except when the employee enters into such a status without break in service or after a separation of three days or less, following service in a position in which he/she was insured and to which he/ she is expected to return.

(4) An employee whose pay 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/her 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 regularly scheduled tour of duty.

(8) An individual first employed by the government of the District of Columbia on or after October 1, 1987.

However, this exclusion does not apply to employees of St. Elizabeths Hospital who accept offers of employment with the District of Columbia government without a break in service, as provided in section 6 of Pub. L. 98-621. (b) OPM shall make the final determination regarding applicability of the above classifications to a specific employee or group of employees.

[49 FR 3034, Jan. 25, 1984, as amended at 52 FR 38220, Oct. 15, 1987]

§ 870.203 Effective dates of insurance coverage.

(a)(1) Following an appointment or transfer to a position in which an employee is not excluded from coverage, the employee is insured on the day he/she actually enters on duty in pay status, unless he/she files a waiver of basic insurance coverage before the end of his/her first pay period with the employing office, or a previously filed waiver remains uncanceled.

(2) An employee who moves from a position in which he/she is insured to another position in which he/she is not excluded from coverage is insured on the effective date of the change, unless the employee files a waiver of basic insurance coverage with the new employing office before the end of his/her first pay period in the new position.

(b) An employee who returns to pay and duty status after a period of more than 12 months of nonpay status is insured at the time he/she actually enters on duty in pay status, unless the employee files a waiver of basic coverage before the end of the first pay period with the employing office, or had previously filed such a waiver which remains uncanceled.

(c) In the case of an employee serving in cooperation with a non-Federal agency and who is paid in whole or in part from non-Federal funds, insurance may not take effect until the date set by OPM for coverage to begin. This date is to be part of an agreement between OPM and the non-Federal agency providing (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