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[80 STAT.

aration as a Member in an appointive position in which he is within the purview of this subchapter, is entitled, if he so elects, to have his Member annuity computed or recomputed as if the service had been performed before his separation as a Member and the annuity as so computed or recomputed is effective— (A) the day Member annuity commences; or (B) the day after the date of separation from the appointive position; whichever is later; (2) if the retired Member becomes employed after December 31, 1958, in an appointive position on an intermittent-service basis— (A) his annuity continues during the employment and is not increased as a result of service performed during that employment; (B) retirement deductions may not be withheld from his pay; (C) an amount equal to the annuity allocable to the period of actual employment shall be deducted from his pay; and (D) the amounts so deducted shall be deposited in the Treasury of the United States to the credit of the F u n d; (3) if the retired Member becomes employed after December 31, 1958, in an appointive position without pay on a full-time or substantially full-time basis, his annuity continues during the employment and is not increased as a result of service performed during the employment; and (4) if the retired Member takes office as Member and gives notice as provided by section 8331(2) of this title, his service as Member during that period shall be credited in determining his right to and the amount of later annuity. This subsection does not apply to a Member appointed by the President to a position not requiring confirmation by the Senate. §8345. Payment of benefits; commencement, termination, and waiver of annuity (a) Each annuity is stated as an annual amount, one-twelfth of which, fixed at the nearest dollar, constitutes the monthly rate payable on the first business day of the month after the month or other period for which it has accrued. (b) Except as otherwise provided, the annuity of an employee or Member commences on the day after he is separated from the service, or on the day after his pay ceases and he meets the service and the age or disability requirements for title to annuity. An annuity payable from the Fund allowed after September 5, 1960, commences on the day after the occurrence of the event on which payment thereof is based. (c) The annuity of a retired employee or Member terminates on the day death or other terminating event provided by this subchapter occurs. The annuity of a survivor terminates on the last day of the month before death or other terminating event occurs. (d) An individual entitled to annuity from the Fund may decline to accept all or any part of the annuity by a waiver signed and filed with the Civil Service Commission. The waiver may be revoked in writing at any time. Payment of the annuity waived may not be made for the period during which the waiver was in effect. (e) Payment due a minor, or an individual mentally incompetent or under other legal disability, may be made to the person who is con-

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stituted guardian or other fiduciary by the law of the State of residence of the claimant or is otherwise legally vested with the care of the claimant or his estate. If a guardian or other fiduciary of the individual under legal disability has not been appointed under the law of the State of residence of the claimant, payment may be made to any person who, in the judgment of the Commission, is responsible for the care of the claimant, and the payment bars recovery by any other person. § 8346. Exemption from legal process; recovery of payments (a) The money mentioned by this subchapter is not assignable, either in law or equity, or subject to execution, levy, attachment, garnishment, or other legal process. (b) Recovery of payments under this subchapter may not be made from an individual when, in the judgment of the Civil Service Commission, the individual is without fault and recovery would be against equity and good conscience. Withholding or recovery of money mentioned by this subchapter on account of a certification or payment made by a former employee of the United States in the discharge of his official duties may be made only if the head of the agency on behalf of which the certification or payment was made certifies to the Commission that the certification or payment involved fraud on the part of the former employee. § 8347. Administration; regulations (a) The Civil Service Commission shall administer this subchapter. Except as otherwise specifically provided herein, the Commission shall perform, or cause to be performed, such acts and prescribe such regulations as are necessary and proper to carry out this subchapter. (b) Applications under this subchapter shall be in such form as the Commission prescribes. Agencies shall support the applications by such certificates as the Commission considers necessary to the determination of the rights of applicants. The Commission shall adjudicate all claims under this subchapter. (c) The Commission shall determine questions of disability and dependency arising under this subchapter. The decisions of the Commission concerning these matters are final and conclusive and are not subject to review. The Commission may direct at any time such medical or other examinations as it considers necessary to determine the facts concerning disability or dependency of an individual receiving or applying for annuity under this subchapter. The Commission may suspend or deny annuity for failure to submit to examination. (d) An administrative action or order affecting the rights or interests of an individual or of the United States under this subchapter may be appealed to the Commission under procedures prescribed by the Commission. (e) The Commission shall fix the fees for examinations made under this subchapter by physicians or surgeons who are not medical officers of the United States. The fees and reasonable traveling and other expenses incurred in connection with the examinations are paid from appropriations for the cost of administering this subchapter. (f) The Commission shall select three actuaries, to be known as the Board of Actuaries of the Civil Service Retirement System. The Commission shall fix the pay of the members of the Board, except members otherwise in the employ of the United States. The Board shall report annually on the actuarial status of the System and furnish its advice and opinion on matters referred to it by the Commission. The Board may recommend to the Commission and to Congress

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such changes as in the Board's judgment are necessary to protect the public interest and maintain the System on a sound financial basis. The Commission shall keep, or cause to be kept, such records as it considers necessary for making periodic actuarial valuations of the System. The Board shall make actuarial valuations every 5 years, or oftener if considered necessary by the Commission. (g) The Commission may exclude from the operation of this subchapter an employee or group of employees in or under an Executive agency whose employment is temporary or intermittent. (h) The Commission, on recommendation by the Commissioners of the District of Columbia, may exclude from the operation of this subchapter an individual or group of individuals employed by the government of the District of Columbia whose employment is temporary or intermittent. (i) The Architect of the Capitol may exclude from the operation of this subchapter an employee under the Office of the Architect of the Capitol whose employment is temporary or of uncertain duration. (j) The Librarian of Congress may exclude from the operation of this subchapter an employee under the Library of Congress whose employment is temporary or of uncertain duration. (k) The Secretary of Agriculture shall prescribe regulations to effect the application and operation of this subchapter to an individual named by section 8331(1)(F) of this title. § 8348. Civil Service Retirement and Disability Fund (a) There is a Civil Service Retirement and Disability Fund. The F u n d is appropriated for the payment of benefits as provided by this subchapter. (b) The Secretary of the Treasury may accept and credit to the Fund money received in the form of a donation, gift, legacy, or bequest, or otherwise contributed for the benefit of civil-service employees generally. (c) The Secretary shall immediately invest in interest-bearing securities of the United States such currently available portions of the F u n d as are not immediately required for payments from the Fund. The income derived from these investments constitutes a part of the Fund. (d) The purposes for which obligations of the United States may be issued under the Second Liberty Bond Act, as amended, are extended to authorize the issuance at par of public-debt obligations for purchase by the Fund. The obligations issued for purchase by the Fund shall have maturities fixed with due regard for the needs of the Fund and bear interest at a rate equal to the average market yield computed as of the end of the calendar month next preceding the date of the issue, borne by all marketable interest-bearing obligations of the United States then forming a part of the public debt which are not due or callable until after the expiration of 4 years from the end of that calendar month. If the average market yield is not a multiple of % of 1 percent, the rate of interest on the obligations shall be the multiple of l^ of 1 percent nearest the average market yield. (e) The Secretary may purchase other interest-bearing obligations of the United States, or obligations guaranteed as to both principal and interest by the United States, on original issue or at the market price only if he determines that the purchases are in the public interest. (f) The Civil Service Commission shall submit estimates of the appropriations necessary to finance the F u n d on a normal cost plus interest basis and to carry out this subchapter.

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(g) Money now or hereafter contained in the Fund may not be used to pay an increase in annuity benefits or a new annuity benefit under this subchapter or an earlier statute which is authorized by amendment thereof until and unless an appropriation is made to the Fund in an amount which the Commission estimates to be sufl&cient to prevent an immediate increase in the unfunded accrued liability of the Fund. CHAPTER 85—UNEMPLOYMENT COMPENSATION SUBCHAPTER I—EMPLOYEES GENERALLY Sec.

8501. 8502. 8503. 8504. 8505. 8506. 8507. 8508.

Definitions. Compensation under State agreement. Compensation absent State agreement. Assignment of Federal service and wages. Payments to States. Dissemination of information. False statements and misrepresentations. Reflations.

SUBCHAPTER II—EX-SERVICEMEN Sec.

8521. 8522. 8523. 8524. 8525.

Definitions; application. Assignment of Federal service and wages. Dissemination of information. Accrued leave. Effect on other statutes.

SUBCHAPTER I—EMPLOYEES GENERALLY § 8501. Definitions For the purpose of this subchapter— (1) "Federal service" means service performed after 1952 in the employ of the United States or an instrumentality of the United States which is wholly or partially owned by the United States, but does not include service (except service to which subchapter II of this chapter applies) performed— (A) by an elective official in the executive or legislative branch; (B) as a member of the armed forces; (C) by Foreign Service personnel for whom special separation allowances are provided under chapter 14 of title 22; (D) outside the United States, the Commonwealth of Puerto Rico, and the Virgin Islands by an individual who is not a citizen of the United States; (E) by an individual excluded by regulations of the Civil Service Commission from the operation of subchapter III of chapter 83 of this title because he is paid on a contract or fee basis; (F) by an individual receiving nominal pay and allowances of $12 or less a year; (G) in a hospital, home, or other institution of the United States by a patient or inmate thereof; (H) by a student-employee as defined by section 5351 of this title; (I) by an individual serving on a temporary basis in case of fire, storm, earthquake, flood, or other similar emergency; (J) by an individual employed under a Federal relief program to relieve him from unemployment;

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(K) as a member of a State, county, or community committee under the Agricultural Stabilization and Conservation Service or of any other board, council, committee, or other similar body, unless the board, council, committee, or other body is composed exclusively of individuals otherwise in the full-time employ of the United States; or (L) by an officer or a member of the crew on or in connection with an American vessel— (i) owned by or bareboat chartered to the United States; and (ii) whose business is conducted by a general agent of the Secretary of Commerce; if contributions on account of the service are required to be made to an unemployment fund under a State unemployment compensation law under section 3305(g) of title 26; (2) "Federal wages" means all pay and allowances, in cash and in kind, for Federal service; (3) "Federal employee" means an individual who has performed Federal service; (4) "compensation" means cash benefits payable to an individual with respect to his unemployment including any portion thereof payable with respect to dependents; (5) "benefit year" means the benefit year as defined by the applicable State unemployment compensation law, and if not so defined the term means the period prescribed in the agreement under this subchapter with a State or, in the absence oi such an agreement, the period prescribed by the Secretary of Labor; (6) "State" means the several States, the District of Columbia, and the Commonwealth of Puerto Rico; and (7) "United States", when used in a geographical sense, means the States. § 8502. Compensation under State agreement (a) The Secretary of Labor, on behalf of the United States, may enter into an agreement with a State, or with an agency administering the unemployment compensation law of a State, under which the State agency shall— (1) pay, as agent of the United States, compensation under this subchapter to Federal employees; and (2) otherwise cooperate with the Secretary and with other Stato agencies in paying compensation under this subchapter. (b) Except as provided by subsection (c) of this section, the agreement shall provide that compensation will be paid by the State to a Federal employee in the same amount, on the same terms, and subject to the same conditions as the compensation which would be payable to him under the unemployment compensation law of the State if his Federal service and Federal wages assigned under section 8504 of this title to the State had been included as employment and wages under that State law. (c) I n the case of the Commonwealth of Puerto Rico, the agreement shall provide that compensation will be paid by the Commonwealth to a Federal employee whose Federal service and Federal wages are assigned under section 8504 of this title to the Commonwealth (but only in the case of weeks of unemployment beginning before January 1, 1966), in the same amount, on the same terms, and subject to the same conditions as the compensation which would be payable to him under the unemployment compensation law of the District of

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Columbia if his Federal service and Federal wages had been included as employment and wages under that law. However, if the Federal employee, without regard to his Federal service and Federal wages, has employment or wages sufficient to qualify for compensation during the benefit year under that law, then payments of compensation under this subsection may be made only on the basis of his Federal service and Federal wages. I n applying this subsection, employment and wages under the unemployment compensation law of the Commonwealth may not be combined with Federal service or Federal wages. (d) A determination by a State agency with respect to entitlement to compensation under an agreement is subject to review in the same manner and to the same extent as determinations under the State unemployment compensation law, and only in that manner and to that extent. (e) Each agreement shall provide the terms and conditions on which it may be amended or terminated. § 8503. Compensation absent State agreement (a) I n the case of a Federal employee whose Federal service and Federal wages are assigned under section 8504 of this title to a State which does not have an agreement with the Secretary of Labor, the Secretary, under regulations prescribed by him, shall, on the filing by the Federal employee of a claim for compensation under this subsection, pay compensation to him in the same amount, on the same terms, and subject to the same conditions as would be paid to him under the unemployment compensation law of the State if his Federal service and Federal wages had been included as employment and wages under that State law. However, if the Federal employee, without regard to his Federal service and Federal wages, has employment or wages sufficient to qualify for compensation during the benefit year under that State law, then payments of compensation under this subsection may be made only on the basis of his Federal service and Federal wages. For the purpose of this subsection, "State" does not include the Commonwealth of Puerto Rico in the case of weeks of unemployment beginning before January 1, 1966. (b) In the case of a Federal employee whose Federal service and Federal wages are assigned under section 8504 of this title to— (1) the Virgin Islands; or (2) the Commonwealth of Puerto Rico with respect to weeks of unemployment beginning before January 1, 1966; the Secretary, under regulations prescribed by him and on the filing of a claim for compensation under this subsection by the Federal employee, shall pay the compensation to him in the same amounts, on the same terms, and subject to the same conditions as would be paid to him under the unemployment compensation law of the District of Columbia if his Federal service and Federal wages had been included as employment and wages under that law. However, if the Federal employee, without regard to his Federal service and Federal wages, has employment or wages sufficient to qualify for compensation during the benefit year under that law, then payments of compensation under this subsection may be made only on the basis of his Federal service and Federal wages. I n the case of weeks of unemployment beginning before January 1, 1966, this subsection applies with respect to the Commonw^ealth of Puerto Rico only if the Commonwealth does not have an agreement under this subchapter with the Secretary. I n applying this subsection, employment and wages under the unemploy-

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[80 STAT.

ment compensation law of the Commonwealth may not be combined with Federal service or Federal wages. (c) A Federal employee whose claim for compensation under subsection (a) or (b) of this section is denied is entitled to a fair hearing under regulations prescribed by the Secretary. A final determination by the Secretary with respect to entitlement to compensation under this section is subject to review by the courts in the same manner and to the same extent as is provided by section 405(g) of title 42. (d) For the purpose of this section, the Secretary may— (1) use the personnel and facilities of the agency in the Virgin Islands cooperating with the United States Employment Service under chapter 4B of title 29; and (2) delegate to officials of that agency the authority granted to him by this section when he considers the delegation to be necessary in carrying out the purpose of this subchapter. For the purpose of payments made to that agency under chapter 4B of title 29, the furnishing of the personnel and facilities is deemed a part of the administration of the public employment offices of that agency. § 8504. Assignment of Federal service and wages Under regulations prescribed by the Secretary of Labor, the Federal service and Federal wages of a Federal employee shall be assigned to the State in which he had his last official station in Federal service before the filing of his first claim for compensation for the benefit year. However— (1) if, at the time of filing his first claim, he resides in another State in which he performed, after the termination of his Federal service, service covered under the unemployment compensation law of the other State, his Federal service and Federal wages shall be assigned to the other State; (2) if his last official station in Federal service, before filing his first claim, wac outside the United States, his Federal service and Federal wages shall be assigned to the State where he resides at the time he files his first claim; and (3) if his first claim is filed— (A) before January 1, 1966, while he is residing in the Commonwealth of Puerto Rico; or (B) while he is residing in the Virgin Islands; his Federal service and Federal wages shall be assigned to the one in which he resides. I n the case of a first claim filed before January 1, 1966, "United States" in paragraph (2) of this section does not include the Commonwealth of Puerto Rico. § 8505. Payments to States (a) Each State is entitled to be paid by the United States an amount equal to the additional cost to the State of payments of compensation in accordance with an agreement under this subchapter which would not have been made by the State but for the agreement. (b) Each State shall be paid, either in advance or by way of reimbursement, as may be determined by the Secretary of Labor, the sum that the Secretary estimates the State is entitled to receive under this subchapter for each calendar month. The sum shall be reduced or increased by the amount which the Secretary finds that his estimate for an earlier calendar month was greater or less than the sum which should have been paid to the State. An estimate may be made on the basis of a statistical, sampling, or other method agreed on by the Secretary and the State agency.

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(c) The Secretary, from time to time, shall certify to the Secretary of the Treasury the sum payable to each State under this section. The Secretary of the Treasury, before audit or settlement by the General Accounting Office, shall pay the State in accordance with the certification from the funds for carrying out the purposes of this subchapter. (d) Money paid a State under this subchapter may be used solely for the purposes for which it is paid. Money so paid which is not used for these purposes shall be returned, at the time specified by the agreement, to the Treasury of the United States and credited to current applicable appropriations, funds, or accounts from which payments to States under this subchapter may be made. (e) An agreement may— (1) require each State officer or employee who certifies payments or disburses funds under the agreement, or who otherwise participates in its performance, to give a surety bond to the United States in the amount the Secretary considers necessary; and (2) provide for payment of the cost of the bond from funds for carrying out the purposes of this subchapter. (f) In the absence of gross negligence or intent to defraud the United States, an individual designated by the Secretary, or designated under an agreement, as a certifying official is not liable for the payment of compensation certified by him under this subchapter. (g) In the absence of gross negligence or intent to defraud the United States, a disbursing official is not liable for a payment by him under this subchapter if it was based on a voucher signed by a certifying official designated as provided by subsection (f) of this section. (h) For the purpose of payments made to a State under subchapter III of chapter 7 of title 42, administration by a State agency under an agreement is deemed a part of the administration of the State unemployment compensation law. § 8506. Dissemination of information (a) Each agency of the United States and each wholly or partially owned instrumentality of the United States shall make available to State agencies which have agreements under this subchapter, or to the Secretary of Labor, as the case may be, such information concerning the Federal service and Federal wages of a Federal employee as the Secretary considers practicable and necessary for the determination of the entitlement of the Federal employee to compensation under this subchapter. The information shall include the findings of the employing agency concerning— (1) whether or not the Federal employee has performed Federal service; (2) the periods of Federal service; (3) the amount of Federal wages; and (4) the reasons for termination of Federal service. The employing agency shall make the findings in the form and manner prescribed by regulations of the Secretary. The regulations shall include provision for correction by the employing agency of errors and omissions. Findings made in accordance with the regulations are final and conclusive for the purpose of sections 8502(d) and 8503(c) of this title. This subsection does not apply with respect to Federal service and Federal wages covered by subchapter II of this chapter. (b) The agency administering the unemployment compensation law of a State shall furnish the Secretary such information as he con65-300 0-67—40

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[80 STAT.

siders necessary or appropriate in carrj^ing out this subchapter. The information is deemed the report recjuired by the Secretary for the purpose of section 503(a)(6) of title 42. § 8507. False statements and misrepresentations (a) If a State agency, the Secretary of Labor, or a court of competent jurisdiction finds that an individual— (1) knowingly has made, or caused to be made by another, a false statement or representation of a material fact, or knowingly has failed, or caused another to fail, to disclose a material fact; and (2) as a result of that action has received an amount as compensation under this subchapter to which he was not entitled; the individual shall repay the amount to the State agency or the Secretary. Instead of requiring repayment under this subsection, the State agency or the Secretary may recover the amount by deductions from compensation payable to the individual under this subchapter during the 2-year period after the date of the finding. A finding by a State agency or the Secretary may be made only after an opportunity for a fair hearing, subject to such further review as may be appropriate under sections 8502(d) and 8503 (c) of this title. (b) An amount repaid under subsection (a) of this section shall be— (1) deposited in the fund from which payment was made, if the repayment was to a State agency; or (2) returned to the Treasury of the United States and credited to the current applicable appropriation, fund, or account from which payment was made, if the repayment was to the Secretary. §8508. Regulations The Secretary of Labor may prescribe rules and regulations necessary to carry out this subchapter and subchapter II of this chapter. The Secretary, insofar as practicable, shall consult with representatives of the State unemployment compensation agencies before prescribing rules or regulations which may affect the performance by the State agencies of functions under agreements under this subchapter. SUBCHAPTER II—EX-SERVICEMEN § 8521. Definitions; application (a) For the purpose of this subchapter— (1) "Federal service" means active service, including active duty for training purposes, in the armed forces which either began after January 31, 1955, or terminated after October 27, 1958, if— (A) that service was continuous for 90 days or more, or was terminated earlier because of an actual service-incurred injury or disability; and (B) with respect to that service, the individual— (i) was discharged or released under conditions other than dishonorable; and (ii) was not given a bad conduct discharge, or, if an officer, did not resign for the good of the service; and (2) "Federal wages" means all pay and allowances, in cash and in kind, for Federal service, computed on the basis of the pay and allowances for the pay grade of the individual at the time of his latest discharge or release from Federal service as specified in the schedule applicable at the time he files his first claim for compen-

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sation for the benefit year. The Secretary of Labor shall issue, from time to time, after consultation with the Secretary of Defense, schedules specifying the pay and allowances for each pay grade of servicemen covered by this subchapter, which reflect representative amounts for appropriate elements of the pay and allowances whether in cash or in kind, (b) The provisions of subchapter I of this chapter, subject to the modifications made by this subchapter, apply to individuals who have had Federal service as defined by subsection (a) of this section. § 8522. Assignment of Federal service and wages Notwithstanding section 8504 of this title. Federal service and Federal wages not previously assigned shall be assigned to the State or to the Virgin Islands, as the case may be, in which the claimant first files claim for unemployment compensation after his latest discharge or release from Federal service. This assignment is deemed an assignment under section 8504 of this title for the purpose of this subchapter. § 8523. Dissemination of information (a) When designated by the Secretary of Labor, an agency of the United States shall make available to the appropriate State agency or to the Secretary, as the case may be, such information, including findings in the form and manner prescribed by regulations of the Secretary, as the Secretary considers practicable and necessary for the determination of the entitlement of an individual to compensation under this subchapter. (b) Subject to correction of errors and omissions as prescribed by regulations of the Secretary, the following are final and conclusive for the purpose of sections 8502(d) and 8503 (c) of this title: (1) Findings by an agency of the United States made in accordance with subsection (a) of this section with respect to— (A) whether or not an individual has met any condition specified by section 8521(a)(1) of this title; (B) the periods of Federal service; and (C) the pay grade of the individual at the time of his latest discharge or release from Federal service. (2) The schedules of pay and allowances prescribed by the Secretary under section 8521(a)(2) of this title. § 8524. Accrued leave For the purpose of this subchapter, a payment for unused accrued leave under section 501(b) of title 37 at the termination of Federal service is deemed— (1) to continue that Federal service during the period after the termination with respect to which the individual received the payment; and (2) Federal wages, subject to regulations prescribed by the Secretary of Labor concerning allocation over the period after termination. § 8525. Effect on other statutes (a) An individual eligible to receive a mustering-out payment under chapter 43 of title 38 is not entitled to compensation under this subchapter with respect to weeks of unemployment completed— (1) within 30 days after his discharge or release if he receives $100 in mustering-out payments; (2) within 60 days after his discharge or release if he receives $200 in mustering-out payments; or (3) within 90 days after his discharge or release if he receives $300 in mustering-out payments.

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(b) An individual is not entitled to compensation under this subchapter for any period with respect to which he receives— (1) a subsistence allowance under chapter 31 of title 38 or under part VIII of Veterans Regulation Numbered 1 (a); or (2) an educational assistance allowance under chapter 35 of title 38. CHAPTER 87—LIFE INSURANCE Sec.

8701. 8702. 8703. 8704. 8705. 8706. 8707. 8708. 8709. 8710. 8711. 8712. 8713. 8714. 8715. 8716.

Definition. Automatic coverage. Benefit certificate. Group insurance; amounts. Deatli claims; order of precedence; escheat. Termination of insurance. Employee deductions; withholding. Government contributions. Insurance policies. Reinsurance. Basic tables of premium rates. Annual accounting; special contingency reserve. Advisors. Employees' Life Insurance Fund. Jurisdiction of courts. Regulations.

§8701. Definition (a) For the purpose of this chapter, "employee" means— (1) an employee as defined by section 2105 of this title; (2) a Member of Congress as defined by section 2106 of this title; (3) a Congressional employee as defined by section 2107 of this title; (4) the President; (5) an individual employed by the government of the District of Columbia; (6) an individual employed by Gallaudet College; (7) a United States Commissioner to whom subchapter III of chapter 83 of this title applies by operation of section 8331(1)(E) of this title; (8) an individual employed by a county committee established under section 590h(b) of title 16; and (9) an individual appointed to a position on the office staff of a former President under section 1(b) of the Act of August 25, 3 USC 102 note. ^ggg (72 Stat. 838); but does not include— (A) an employee of a corporation supervised by the Farm Credit Administration if private interests elect or appoint a member of the board of directors; (B) a noncitizen employee whose permanent duty station is outside the United States; or (C) an employee excluded by regulation of the Civil Service Commission under section 8716(b) of this title. (b) Notwithstanding subsection (a) of this section, the employment of a teacher in the recess period between two school years in a position other than a teaching position in which he served immediately before the recess period does not qualify the individual as an employee for the purpose of this chapter. For the purpose of this subsection, "teacher" and "teaching position" have the meanings given them by section 901 of title 20.

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§ 8702. Automatic coverage (a) An employee is automatically insured on the date lie becomes eligible for insurance and each policy of insurance purchased by the Civil Service Commission under this chapter shall provide for that automatic coverage. (b) An employee desiring not to be insured shall give written notice to his employing office on a form prescribed by the Commission. If the notice is received before he has become insured, he shall not be insured. If the notice is received after he has become insured, his insurance stops at the end of the pay period in which the notice is received. § 8703. Benefit certificate The Civil Service Commission shall arrange to have each insured employee receive a certificate setting forth the benefits to which he is entitled, to whom the benefits are payable, to whom the claims shall be submitted, and summarizing the provisions of the policy principally affecting him. The certificate is issued instead of the certificate which the insurance company would otherwise be required to issue. § 8704. Group insurance; amounts (a) An employee eligible for insurance is entitled to be insured for an amount of group life insurance approximating his annual pay not exceeding $20,000 plus an ec[ual amount of group accidental death and dismemberment insurance, m accordance with the following schedule: If annual pay is— Greater than—

0 $1,000.. $2,000.. $3,000.. $4,000.. $5,000.. $6,000.. $7,000.. $8,000.. $9,000.. $10,000. $11,000. $12,000. $13,000. $14,000. $15,000. $16,000. $17,000. $18,000. $19,000.

But not greater than—

$1,000. 2,000.. 3,000.. 4,000.. 5,000.. 6,000.. 7,000.. 8,000.. 9,000.. 10,000. 11,000. 12,000. 13,000. 14,000. 15,000. 16,000. 17,000. 18,000. 19,000.

The amount of group life Insurance is—

$1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 11,000 12,000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000

The amount of group accidental death and dismemberment insurance is— $1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9.000 10,000 11,000 12.000 13,000 14,000 15,000 16,000 17,000 18,000 19,000 20,000

(b) Subject to the conditions and limitations approved by the Civil Service Commission which are contained in the policy purchased by the Commission, the group accidental death and dismemberment insurance provides payment as follows: Loss Amount payable For loss of life Full amount shown in the schedule In subsection (a) of this section. Loss of one hand or of one foot or loss One-half the amount shown in the schedof sight of one eye. ule in subsection (a) of this section. Loss of two or more such members Full amount shown in the schedule in subsection (a) of this section.

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[80 STAT.

For any one accident the aggregate amount of group accidental death and dismemberment insurance that may be paid may not exceed the amount shown in the schedule in subsection (a) of this section. (c) The Commission shall prescribe regulations providing for the conversion of other than annual rates of pay to annual rates of pay and shall specify the types of pay included in annual pay. (d) In determining the amount of insurance to which an employee is entitled— (1) a change in rate of pay under section 5337 of this title is deemed effective as of the first day of the pay period after the pay period in which the payroll change is approved; and (2) a change in rate of pay under section 5343 of this title is deemed effective as of the date of issuance of the order granting the increase or the effective date of the increase, whichever is later. § 8705. Death claims; order of precedence; escheat (a) The amount of group life insurance and group accidental death insurance in force on an employee at the date of his death shall be paid, on the establishment of a valid claim, to the person or persons surviving at the date of his death, in the following order of precedence: First, to the beneficiary or beneficiaries designated by the employee in a writing received in the employing office before death. Second, if there is no designated beneficiary, to the widow or widower of the employee. Third, if none of the above, to the child or children of the employee and descendants of deceased children by representation. Fourth, if none of the above, to the parents of the employee or the survivor of them. Fifth, if none of the above, to the duly appointed executor or administrator of the estate of the employee. Sixth, if none of the above, to other next of kin of the employee entitled under the laws of the domicile of the employee at the date of his death. (b) If, within 1 year after the death of the employee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, or if payment to the person within that period is prohibited by Federal statute or regulation, payment may be made in the order of precedence as if the person had predeceased the employee, and the payment bars recovery by any other person. (c) If, within 2 years after the death of the employee, no claim for payment has been filed by a person entitled under the order of precedence named by subsection (a) of this section, and neither the Civil Service Commission nor the administrative office established by the company concerned pursuant to section 8709(b) of this title has received notice that such a claim will be made, payment may be made to the claimant who in the judgment of the Commission is equitablj^ entitled thereto, and the payment bars recovery by any other person. (d) If, within 4 years after the death of the employee, payment has not been made under this section and no claim for payment by a person entitled under this section is pending, the amount payable escheats to the credit of the Employees' Life Insurance Fund.

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§ 8706. Termination of insurance (a) A policy purchased under this chapter shall contain a provision, approved by the Civil Service Commission, to the effect that insurance on an employee stops on his separation from the service or 12 months after discontinuance of his pay, whichever is earlier, subject to a provision for temporary extension of life insurance coverage and for conversion to an individual policy of life insurance under conditions approved by the Commission. (b) If on the date the insurance would otherwise stop the employee retires on an immediate annuity and— (1) his retirement is for disability; or (2) he has completed 12 years of creditable service as determined by the Commission; his life insurance only may be continued, without cost to him, under conditions determined by the Commission. Periods of honorable, active service in the armed forces shall be credited toward the required 12 years if the employee has completed at least 5 years of civilian service. The amount of life insurance continued under this subsection shall be reduced by 2 percent at the end of each full calendar month after the date the employee becomes 65 years of age or retires, whichever is later. The Commission may prescribe minimum amounts, not less than 25 percent of the amount of life insurance in force before the first reduction, to which the insurance may be reduced. (c) If on the date the insurance would otherwise stop the employee is receiving benefits under subchapter I of chaj^ter 81 of this title because of disease or injury to himself, his life insurance only may be continued, without cost to him, under conditions determined by the Commission while he is receiving the benefits and is held by the Department of Labor to be unable to return to duty. (d) The insurance granted to an employee stops, except for a 31-day extension of life insurance coverage, on the day immediately before his entry on active duty or active duty for training unless the period of duty is covered by military leave with pay. The insurance does not stop during a period of inactive duty training. For the purpose cf this subsection, the terms "active duty", "active duty for training", and "inactive duty training" have the meanings given them by section 101 of title 38. § 8707. Employee deductions; withholding During each period in which an employee is insured under a policy of insurance purchased by the Civil Service Commission under section 8709 of this title, an amount determined by the Commission shall be withheld from the pay of the employee as his share of the cost of his group life and accidental death and dismemberment insurance. The amount may not exceed the rate of 25 cents biweekly for each $1,000 of his group life insurance. The amount withheld from an employee paid on other than a biweekly basis is determined at a proportional rate adjusted to the nearest cent. § 8708. Government contributions (a) For each period in which an employee is insured under a policy of insurance purchased by the Civil Service Commission under section 8709 of this title, a sum computed at a rate determined by the Commission shall be contributed from the appropriation or fund which is used to pay him. The sum may not exceed one-half the amount which is withheld from the pay of the employee under section 8707 of this title.

595

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(b) When an employee is paid by the Clerk of the House of RepresentativeSj the Clerk may contribute the sum required by subsection (a) of this section from the contingent fund of the House. (c) When the employee is an elected official, the sum required by subsection (a) of this section is contributed from an appropriation or fund available for payment of other salaries of the same office or establishment. § 8709. Insurance policies (a) The Civil Service Commission, without regard to section 5 of title 41, may purchase from one or more life insurance companies a policy or policies of group life and accidental death and dismemberment insurance to provide the benefits specified by this chapter. A company must meet the following requirements: (1) I t must be licensed to transact life and accidental death and dismemberment insurance under the laws of 48 of the States and the District of Columbia. (2) I t must have in effect, on the most recent December 31 for which information is available to the Commission, an amount of employee group life insurance equal to at least 1 percent of the total amount of employee group life insurance in the United States in all life insurance companies. (b) A company issuing a policy under subsection (a) of this section shall establish an administrative office under a name approved by the Commission. (c) The Commission at any time may discontinue a policy purchased from a company under subsection (a) of this section. §8710. Reinsurance (a) The Civil Service Commission shall arrange with a company issuing a policy under this chapter for the reinsurance, under conditions approved by the Commission, of portions of the total amount of insurance under the policy, determined under this section, with other life insurance companies which elect to participate in the reinsurance. (b) The Commission shall determine for and in advance of a policy year which companies are eligible to participate as reinsurers and the amount of insurance under a policy which is to be allocated to the issuing company and to reinsurers. The Commission shall make this determination at least every 3 years and when a participating company withdraws. (c) The Commission shall establish a formula under which the amount of insurance retained by an issuing company after ceding reinsurance, and the amount of reinsurance ceded to each reinsurer, is in proportion to the total amount of each company's group life insurance, excluding insurance purchased under this chapter, in force in the United States on the determination date, which is the most recent December 31 for which information is available to the Commission. In determining the proportions, the portion of a company's group life insurance in force on the determination date in excess of $100,000,000 shall be reduced by— (1) 25 percent of the first $100,000,000 of the excess; (2) 50 percent of the second $100,000,000 of the excess; (3) 75 percent of the third $100,000,000 of the excess; and (4) 95 percent of the remaining excess. However, the amount retained by or ceded to a company may not exceed 25 percent of the amount of the company's total life insurance in force in the United States on the determination date.

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(d) A fraternal benefit association which is— (1) licensed to transact life insurance under the laws of a State or the District of Columbia; and (2) engaged in issuing insurance certificates on the lives of employees of the United States exclusively; is eligible to act as a reinsuring company and may be allocated an amount of reinsurance equal to 25 percent of its total life insurance in force on employees of the United States on the determination date named by subsection (c) of this section. (e) An issuing company or reinsurer is entitled, as a minimum, to be allocated an amount of insurance under the policy equal to any reduction from December 31, 1953, to the determination date, in the amount of the company's group life insurance under policies issued to associations of employees of the United States. However, any increase under this subsection in the amount allocated is reduced by the amount in force on the determination date of any policy covering life insurance agreements assumed by the Commission. (f) The Commission may modify the computations under this section as necessary to carry out the intent of this section. § 8711. Basic tables of premium rates (a) A policy purchased under this chapter shall include, for the first policy year, basic tables of premium rates as follows: (1) For group life insurance, a schedule of basic premium rates by age which the Civil Service Commission determines to be consistent with the lowest schedule of basic premium rates generally charged for new group life insurance policies issued to large employers. (2) For group accidental death and dismemberment insurance, a basic premium rate which the Commission determines is consistent with the lowest rate generally charged for new group accidental death and dismemberment policies issued to large employers. The schedule for group life insurance, except as otherwise provided by this section, shall be applied to the distribution by age of the amounts of group life insurance under the policy at its date of issuance to determine an average basic premium rate per $1,000 of life insurance. (b) The policy shall provide that the basic premium rates determined for the first policy year continue for later policy years except as readjusted for a later year based on experience under the policy. The company issuing the policy may make the readjustment on a basis that the Commission determines in advance of the policy year is consistent with the general practice of life insurance companies under policies of group life and group accidental death and dismemberment insurance issued to large employers. (c) The policy shall provide that if the Commission determines that ascertaining the actual age distribution of the amounts of group life insurance in force at the date of issue of the policy or at the end of the first or any later year of insurance thereunder would not be possible except at a disproportionately high expense, the Commission may approve the determination of a tentative average group life premium rate, for the first or any later policy year, instead of using the actual age distribution. The Commission, on request by the company issuing the policy, shall redetermine the tentative average premiuni rate during any policy year, if experience indicates that the assumptions made in determining that rate were incorrect for that year.

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[80 STAT.

(d) The policy shall stipulate the maximum expense and risk charges for the first policy year. The Commission shall determine these charges on a basis consistent with the general level of charges made by life insurance companies under policies of group life and accidental death and dismemberment insurance issued to large employers. The maximum charges continue from year to year, except that the Commission may redetermine them for any year either by agreement with the company issuing the policy or on written notice given to the company at least 1 year before the beginning of the year for which the redetermined maximum charges will be effective. § 8712. Annual accounting; special contingency reserve A policy purchased under this chapter shall provide for an accounting to the Civil Service Commission not later than 90 days after the end of each policy year. The accounting shall set forth, in a form approved by the Commission— (1) the amounts of premiums actually accrued under the policy from its date of issue to the end of the policy year; (2) the total of all mortality and other claim charges incurred for that period; and (3) the amounts of the insurers' expense and risk charges for that period. An excess of the total of paragraph (1) of this section over the sum of paragraphs (2) and (3) of this section shall be held by the company issuing the policy as a special contingency reserve to be used by the company only for charges under the policy. The reserve shall bear interest at a rate determined in advance of each policy year by the company and approved by the Commission as being consistent with the rates generally used by the company for similar funds held under other group life insurance policies. When the Commission determines that the special contingency reserve has attained an amount estimated by it to make satisfactory provision for adverse fluctuations in future charges under the policy, any further excess shall be deposited in the Treasury of the United States to the credit of the Employees' Life Insurance Fund. When a policy is discontinued, any balance remaining in the special contingency reserve after all charges have been made shall be deposited in the Treasury to the credit of the Fund. The company may make the deposit in equal monthly installments over a period of not more than 2 years. §8713. Advisors (a) There is an Advisory Council on Group Insurance consisting of the Secretary of the Treasury as Chairman, the Secretary of Labor, and the Director of the Bureau of the Budget. The Council members serve without additional pay. The Council shall— (1) meet once a year, or oftener as called by the Civil Service Commission; (2) review the operations under this chapter; and (3) advise the Commission on matters of policy relating to its activities thereunder. (b) The Chairman of the Commission shall appoint a committee composed of five employees insured under this chapter, who serve without additional pay, to advise the Commission regarding matters of concern to employees under this chapter. § 8714. Employees' Life Insurance Fund (a) The amounts withheld from employees under section 8707 of this title and the sums contributed from appropriations and funds

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under section 8708 of this title shall be deposited in the Treasury of the United States to the credit of the Employees' Life Insurance Fund. The F u n d is available without fiscal year limitation for— (1) premium payments under an insurance policy purchased under this chapter; and (2) expenses incurred by the Civil Service Commission in the administration of this chapter within the limitations that may be specified annually by appropriation acts. (b) The Secretary of the Treasury may invest and reinvest any of the money in the Fund in interest-bearing obligations of the United States, and may sell these obligations for the purposes of the Fund. The interest on and the proceeds from the sale of these obligations, and the income derived from dividend or premium rate adjustments from insurers, become a part of the Fund. § 8715. Jurisdiction of courts The district courts of the United States have original jurisdiction, concurrent with the Court of Claims, of a civil action or claim against the United States founded on this chapter. § 8716. Regulations (a) The Civil Service Commission may prescribe regulations necessary to carry out the purposes of this chapter. (b) The regulations of the Commission may prescribe the time at which and the conditions under which an employee is eligible for coverage under this chapter. The Commission, after consulting the head of the agency or other employing authority concerned, may exclude an employee on the basis of the nature and type of his employment or conditions pertaining to it, such as short-term appointment, seasonal, intermittent or part-time employment, and employment of like nature. The Commission may not exclude— (1) an employee or group of employees solely on the basis of the hazardous nature of employment; or (2) a teacher in the employ of the Board of Education of the District of Columbia, whose pay is fixed by section 1501 of title 31, District of Columbia Code, on the basis of the fact that the teacher is serving under a temporary appointment if the teacher has been so employed by the Board for a period or periods totaling not less than two school years. (c) The Secretary of Agriculture shall prescribe regulations to effect the application and operation of this chapter to an individual named by section 8701(a)(8) of this title. CHAPTER 89—HEALTH INSURANCE Sec.

8901. 8902. 8903. 8904. 8905. 8906. 8907. 8908. 8909. 8910. 8911. 8912. 8913.

Definitions. Contracting authority. Health benefits plans. Types of benefits. Election of coverage. Contributions. Information to employees. Coverage of restored employee. Employees Health Benefits Fund. Studies, reports, and audits. Advisory committee. Jurisdiction of courts. Regulations.

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§8901. Definitions. For the purpose of this chapter— (1) "employee" means— (A) an employee as defined by section 2105 of this title; (B) a Member of Congress as defined by section 2106 of this title; (C) a Congressional employee as defined by section 2107 of this title; (D) the President; (E) an individual employed by the government of the District of Columbia; (F) an individual employed by Gallaudet College; (G) a United States Commissioner to whom subchapter III of chapter 83 of this title applies by operation of section 8331(1)(E) of this title; and (H) an individual employed by a county committee established under section 590h(b) of title 16; but does not include— (i) an employee of a corporation supervised by the Farm Credit Administration if private interests elect or appoint a member of the board of directors; (ii) a noncitizen employee whose permanent duty station is outside the United States; (iii) an employee of the Tennessee Valley Authority; or (iv) an employee excluded by regulation of the Civil Service Commission under section 8913(b) of this title; (2) "Government" means the Government of the United States and the government of the District of Columbia; (3) "annuitant" means— (A) an employee who retires on an immediate annuity under subchapter III of chapter 83 of this title or another retirement system for employees of the Government, after 12 or more years of service or for disability; (B) a member of a family who receives an immediate annuity as the survivor of a retired employee described by subparagraph (A) of this paragraph or of an employee who dies after completing 5 or more years of service; (C) an employee who receives monthly compensation under subchapter I of chapter 81 of this title and who is determined by the Secretary of Labor to be unable to return to duty; and (D) a member of a family who receives monthly compensation under subchapter I of chapter 81 of this title as the surviving beneficiary of— (i) an employee who, having completed 5 or more years of service, dies as a result of injury or illness compensable under that subchapter; or (ii) a former employee who is separated after having completed 5 or more years of service and who dies while receiving monthly compensation under that subchapter and who has been held by the Secretary to have been unable to return to duty; (4) "service", as used by paragraph (3) of this section, means service which is creditable under subchapter III of chapter 83 of this title;

[80 STAT.

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(5) "member of family" means the spouse of an employee or annuitant and an unmarried child under 21 years of age, including— (A) an adopted child; and (B) a stepchild, foster child, or recognized natural child who lives with the employee or annuitant in a regular parentchild relationship; or such an unmarried child regardless of a^e who is incapable of self-support because of mental or physical disability which existed before age 21; (6) "health benefits plan" means a group insurance policy or contract, medical or hospital service agreement, membership or subscription contract, or similar group arrangement provided by a carrier for the purpose of providing, paying for, or reimbursing expenses for health services; (7) "carrier" means a voluntary association, corporation, partnership, or other nongovernmental organization which is lawfully engaged in providing, paying for, or reimbursing the cost oi, health services under group insurance policies or contracts, medical or hospital service agreements, membership or subscription contracts, or similar group arrangements, in consideration of premiums or other periodic charges payable to the carrier, including a health benefits plan duly sponsored or underwritten by an employee organization; and (8) "employee organization" means an association or other organization of employees which is national in scope, or in which membership is open to all employees of a Government agency who are eligible to enroll in a health benefits plan under this chapter, and which, before January 1, 1964, applied to the Commission for approval of a plan provided under section 8903(3) of this title. § 8902. Contracting authority (a) The Civil Service Commission may contract with qualified carriers offering plans described by section 8903 of this title, without regard to section 5 of title 41 or other statute requiring competitive bidding. Each contract shall be for a uniform term of at least 1 year, but may be made automatically renewable from term to term in the absence of notice of termination by either party, (b) To be eligible as a carrier for the plan described by section 8903(2) of this title, a company must be licensed to issue group health insurance in all the States and the District of Columbia. (c) A contract for a plan described by section 8903(1) or (2) of this title shall require the carrier— (1) to reinsure with other companies which elect to participate, under an equitable formula based on the total amount of their group health insurance benefit payments in the United States during the latest year for which the information is available, to be determined by the carrier and approved by the Commission; or (2) to allocate its rights and obligations under the contract among its affiliates which elect to participate, under an equitable formula to be determined by the carrier and the affiliates and approved by the Commission. (d) Each contract under this chapter shall contain a detailed statement of benefits offered and shall include such maximums, limitations, exclusions, and other definitions of benefits as the Commission considers necessary or desirable.

601

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(e) The Commission may prescribe reasonable minimum standards for health benefits plans described by section 8903 of this title and for carriers offering the plans. Approval of a plan may be withdrawn only after notice and opportunity for hearing to the carrier concerned without regard to subchapter II of chapter 5 and chapter 7 of this title. The Commission may terminate the contract of a carrier effective at the end of the contract term, if the Commission finds that at no time during the preceding two contract terms did the carrier have 300 or more employees and annuitants, exclusive of family members, enrolled in the plan. (f) A contract may not be made or a plan approved which excludes an individual because of race, sex, health status, or, at the time of the first opportunity to enroll, because of age. (g) A contract may not be made or a plan approved which does not offer to each employee or annuitant whose enrollment in the plan is ended, except by a cancellation of enrollment, a temporary extension of coverage during which he may exercise the option to convert, without evidence of good health, to a nongroup contract providing health benefits. An employee or annuitant who exercises this option shall pay the full periodic charges of the nongroup contract. (h) The benefits and coverage made available under subsection (g) of this section are noncancelable by the carrier except for fraud, overinsurance, or nonpayment of periodic charges. (i) Rates charged under health benefits plans described by section 8903 of this title shall reasonably and equitably reflect the cost of the benefits provided. Rates under health benefits plans described by section 8903(1) and (2) of this title shall be determined on a basis which, in the judgment of the Commission, is consistent with the lowest schedule of basic rates generally charged for new group health benefit plans issued to large employers. The rates determined for the first contract term shall be continued for later contract terms, except that they may be readjusted for any later term, based on past experience and benefit adjustments under the later contract. Any readjustment in rates shall be made in advance of the contract term in which they will apply and on a basis which, in the judgment of the Commission, is consistent with the general practice of carriers which issue group health benefit plans to large employers. § 8903. Health benefits plans The Civil Service Commission may contract for or approve the following health benefits plans: (1) SERVICE BENEFIT PLAN.—One Government-wide plan, offering two levels of benefits, under which payment is made by a carrier under contracts with physicians, hospitals, or other providers of health services for benefits of the types described by section 8904(1) of this title given to employees or annuitants, or members of their families, or, under certain conditions, payment is made by a carrier to the employee or annuitant or member of his family. (2) INDEMNITY BENEFIT PLAN.—One Government-wide plan, offering two levels of benefits, under which a carrier agrees to pay certain sums of money, not in excess of the actual expenses incurred, for benefits of the types described by section 8904(2) of this title. (3) EMPLOYEE ORGANIZATION PLANS.—Employee organization plans which offer benefits of the types referred to by section 8904 (3) of this title, which are sponsored or underwritten, and are administered, in whole or substantial part, by employee organiza-

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tions, which are available only to individuals, and members of their families, who at the time of enrollment are members of the organization. (4) COMPREHENSIVE MEDICAL PLANS.— (A) GROUP-PRACTICE PREPAYMENT PLANS.—Group-practice

prepayment plans which offer health benefits of the types referred to by section 8904(4) of this title, in whole or in substantial part on a prepaid basis, with professional services thereunder provided by physicians practicing as a group in a common center or centers. The group shall include physicians representing at least three major medical specialties who receive all or a substantial part of their professional income from the prepaid funds. (B)

INDIVIDUAL-PRACTICE PREPAYMENT PLANS.—Individ-

ual-practice prepayment plans which offer health services in whole or substantial part on a prepaid basis, with professional services thereunder provided by individual physicians who agree, under certain conditions approved by the Commission, to accept the payments provided by the plans as full payment for covered services given by them including, in addition to in-hospital services, general care given in their offices and the patients' homes, out-of-hospital diagnostic procedures, and preventive care, and which plans are offered by organizations which have successfully operated similar plans before approval by the Commission of the plan in which employees may enroll. § 8904. Types of benefits The benefits to be provided under plans described by section 8903 of this title may be of the following types: (1)

SERVICE BENEFIT P L A N. —

(A) (B) (C) (D) (E) (F)

Hospital benefits. Surgical benefits. In-hospital medical benefits. Ambulatory patient benefits. Supplemental benefits. Obstetrical benefits.

(2) INDEMNITY BENEFIT P L A N. —

^A) (B) (C) (D) (E) (F)

Hospital care. Surgical care and treatment. Medical care and treatment. Obstetrical benefits. Prescribed drugs, medicines, and prosthetic devices. Other medical supplies and services. (3) EMPLOYEE ORGANIZATION PLANS.—Benefits of the types named under paragraph (1) or (2) of this section or both. (4) COMPREHENSIVE MEDICAL PLANS.—Benefits of the types named under paragraph (1) or (2) of this section or both. All plans contracted for under paragraphs (1) and (2) of this section shall include benefits both for costs associated with care in a general hospital and for other health services of a catastrophic nature. § 8905. Election of coverage (a) A n employee may enroll in an approved health benefits plan described by section 8903 of this title either as an individual or for self and family.

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(b) An annuitant who at the time he becomes an annuitant was enrolled in a health benefits plan under this chapter— (1) as an employee for a period of not less than— (A) the 5 years of service immediately before retirement; (B) the full period or periods of service between the last day of the first period, as prescribed by regulations of the Civil Service Commission, in which he is eligible to enroll in the plan and the date on which he becomes an annuitant; or (C) the full period or periods of service beginning with the enrollment which became effective before January 1, 1965, and ending with the date on which he becomes an annuitant; whichever is shortest; or (2) as a member of the family of an employee or annuitant; may continue his enrollment under the conditions of eligibility prescribed by regulations of the Commission. (c) If an employee has a spouse who is an employee, either spouse, but not both, may enroll for self and family, or each spouse may enroll as an individual. However, an individual may not be enrolled both as an employee or annuitant and as a member of the family. (d) An employee or annuitant enrolled in a health benefits plan under this chapter may change his coverage or that of himself and members of his family by an application filed within 60 days after a change in family status or at other times and under conditions prescribed by regulations of the Commission. (e) An employee or annuitant may transfer his enrollment from a health benefits plan described by section 8903 of this title to another plan described by that section at the times and under the conditions prescribed by regulations of the Commission. §8906. Contributions (a) Except as provided by subsection (b) of this section, the Government contribution for health benefits for employees or annuitants enrolled in health benefits plans under this chapter, in addition to the contributions required by subsection (c) of this section, is 60 percent of the lowest rates charged by a carrier for a level of benefits offered by a plan under section 8903(1) or (2) of this title, but— (1) not less than $1.25 or more than $1.75 biweekly for an employee or annuitant who is enrolled for self alone; and (2) not less than $3 or more than $4.25 biweekly for an employee or annuitant who is enrolled for self and family. (b) The Government contribution for an employee or annuitant enrolled in a plan described by section 8903(3) or (4) of this title for which the biweekly subscription charge is less than twice the Government contribution established under subsection (a) of this section, is 50 percent of the subscription charge. (c) There shall be withheld from the pay of each enrolled employee and the annuity of each enrolled annuitant and there shall be contributed by the Government, amounts, in the same ratio as the contributions of the employee or annuitant and the Government under subsections (a) and (b) of this section, which are necessary for the administrative costs and the reserves provided for by section 8909(b) of this title. (d) The amount necessary to pay the total charge for enrollment, after the Government contribution is deducted, shall be withheld from the pay of each enrolled employee and from the annuity of each enrolled annuitant. The withholding for an annuitant shall be the same as that for an employee enrolled in the same health benefits plan and level of benefits.

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(e) An employee enrolled in a health benefits plan under this chapter who is placed in a leave without pay status may have his coverage and the coverage of members of his family continued under the plan for not to exceed 1 year under regulations prescribed by the Commission. The regulations may provide for the waiving of contributions by the employee and the Government. (f) The Government contributions for health benefits for an employee shall be paid— (1) in the case of employees generally, from the appropriation or fund which is used to pay the employee; (2) in the case of an elected official, from an appropriation or fund available for payment of other salaries of the same office or establishment; (3) in the case of an employee of the legislative branch who is paid by the Clerk of the House of Representatives, from the contingent fund of the House; and (4) in the case of an employee in a leave without pay status, from the appropriation or fund which would be used to pay the employee if he were in a pay status. (g) The Government contributions authorized by subsection (a) of this section for health benefits for an annuitant shall be paid from annual appropriations which are authorized to be made for that purpose. (h) The Commission shall provide for conversion of biweekly rates of contribution specified by this section to rates for employees and annuitants paid on other than a biweekly basis, and for this purpose may provide for the adjustment of the converted rate to the nearest cent. § 8907. Information to employees (a) The Civil Service Commission shall make available to each employee eligible to enroll in a health benefits plan under this chapter such information, in a form acceptable to the Commission after consultation with the carrier, as may be necessary to enable the employee to exercise an informed choice among the types of plans described by section 8903 of this title. (b) Each employee enrolled in a health benefits plan shall be issued an appropriate document setting,forth or summarizing the— (1) services or benefits, including maximums, limitations, and exclusions, to which the employee or the employee and members of his family are entitled thereunder; (2) procedure for obtaining benefits; and (3) principal provisions of the plan affecting the employee or members of his family. § 8908. Coverage of restored employee An employee enrolled in a health benefits plan under this chapter who is removed or suspended without pay and later reinstated or restored to duty on the ground that the removal or suspension was unjustified or unwarranted may, at his option, enroll as a new employee or have his coverage restored, with appropriate adjustments made in contributions and claims, to the same extent and effect as though the removal or suspension had not taken place. § 8909. Employees Health Benefits Fund (a) There is in the Treasury of the United States an Employees Health Benefits Fund which is administered by the Civil Service Commission. The contributions of employees, annuitants, and the Govern-

65-300 0-67—41

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[80 STAT.

ment described by section 8906 of this title shall be paid into the Fund. The Fund is available— (1) without fiscal year limitation for all payments to approved health benefits plans; and (2) to pay expenses for administering this chapter within the limitations that may be specified annually by Congress. (b) Portions of the contributions made by employees, annuitants, and the Government shall be regularly set aside in the Fund as follows: (1) A percentage, not to exceed 1 percent of all contributions, determined by the Commission to be reasonably adequate to pay the administrative expenses made available by subsection (a) of this section. (2) For each health benefits plan, a percentage, not to exceed 3 percent of the contributions toward the plan, determined by the Commission to be reasonably adequate to provide a contingency reserve. The Commission, from time to time and in amounts it considers appropriate, may transfer unused funds for administrative expenses to the contingency reserves of the plans then under contract with the Commission. When funds are so transferred, each contingency reserve shall be credited in proportion to the total amount of the subscription charges paid and accrued to the plan for the contract term immediately before the contract term in which the transfer is made. The income derived from dividends, rate adjustments, or other refunds made by a plan shall be credited to its contingency reserve. The contingency reserves may be used to defray increases in future rates, or may be applied to reduce the contributions of employees and the Government to, or to increase the benefits provided by, the plan from which the reserves are derived, as the Commission from time to time shall determine. (c) The Secretary of the Treasury may invest and reinvest any of the money in the Fund in interest-bearing obligations of the United States, and may sell these obligations for the purposes of the Fund. The interest on and the proceeds from the sale of these obligations become a part of the Fund. (d) When the assets, liabilities, and membership of employee organizations sponsoring or underwriting plans approved under section 8903(3) of this title are merged, the assets (including contingency reserves) and liabilities of the plans sponsored or underwritten by the merged organizations shall be transferred at the beginning of the contract term next following the date of the merger to the plan sponsored or underwritten by the successor organization. Each employee or annuitant affected by a merger shall be transferred to the plan sponsored or underwritten by the successor organization unless he enrolls in another plan under this chapter. (e) Except as provided by subsection (d) of this section, when a plan described by section 8903(3) or (4) of this title is discontinued under this chapter, the contingency reserve of that plan shall be credited to the contingency reserves of the plans continuing under this chapter for the contract term following that in which termination occurs, each reserve to be credited in proportion to the amount of the subscription charges paid and accrued to the plan for the year of termination. § 8910. Studies, reports, and audits (a) The Civil Service Commission shall make a continuing study of the operation and administration of this chapter, including surveys and reports on health benefits plans available to employees and on the experience of the plans.

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(b) Each contract entered into under section 8902 of this title shall contain provisions requiring carriers to— (1) furnish such reasonable reports as the Commission determines to be necessary to enable it to carry out its functions under this chapter; and (2) permit the Commission and representatives of the General Accounting Office to examine records of the carriers as may be necessary to carry out the purposes of this chapter. (c) Each Government agency shall keep such records, make such certifications, and furnish the Commission with such information and reports as may be necessary to enable the Commission to carry out its functions under this chapter. § 8911. Advisory committee The Chairman of the Civil Service Commission shall appoint a committee composed of five members, who serve without pay, to advise the Commission regarding matters of concern to employees under this chapter. Each member of the committee shall be an employee enrolled under this chapter or an elected official of an employee organization. § 8912. Jurisdiction of courts The district courts of the United States have original jurisdiction, concurrent with the Court of Claims, of a civil action or claim against the United States founded on this chapter. §8913. Regulations (a) The Civil Service Commission may prescribe regulations necessary to carry out this chapter. (b) The regulations of the Commission may prescribe the time at which and the manner and conditions under which an employee is eligible to enroll in an approved health benefits plan described by section 8903 of this title. The regulations may exclude an employee on the basis of the nature and type of his employment or conditions pertaining to it, such as short-term appointment, seasonal or intermittent employment, and employment of like nature. The Commission may not exclude— (1) an employee or group of employees solely on the basis of the hazardous nature of employment; or (2) a teacher in the employ of the Board of Education of the District of Columbia, whose pay is fixed by section 1501 of title 31, District of Columbia Code, on the basis of the fact that the teacher is serving under a temporary appointment if the teacher has been so employed by the Board for a period or periods totaling not less than two school years. (c) The regulations of the Commission shall provide for the beginning and ending dates of coverage of employees and annuitants and members of their families under health benefits plans. The regulations may permit the coverage to continue, exclusive of the temporary extension of coverage described by section 8902(g) of this title, until the end of the pay period in which an employee is separated from the service, or until the end of the month in which an annuitant ceases to be entitled to annuity, and in case of the death of an employee or annuitant, may permit a temporary extension of the coverage of members of his family for not to exceed 90 days. (d) The Secretary of Agriculture shall prescribe regulations to effect the application and operation of this chapter to an individual named by section 8901(1)(H) of this title.

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61 Stat. 643.

PUBLIC LAW 89-554-SEPT. 6, 1966

[80 STAT.

s^c. 2. (a) Section 42 of title 4, United States Code, is amended to read as follows: "§ 42. S a m e; custody and use of "The Secretary of State shall have the custody and charge of such seal. Except as provided by section 2902(a) of title 5, the seal shall not be affixed to any instrument without the special warrant of the President therefor." (b) The analysis of chapter 4 of title 4, United States Code, is amended by redesignating item 111 as "112", and by inserting after item 110: "111. Same; taxation affecting Federal employees; income tax."

(c) Chapter 4 of title 4, United States Code, is further amended by redesignating section 111 as "112", and by inserting after section 110: "The United States consents to the taxation of pay or compensation for personal service as an officer or employee of the United States, a territory or possession or political subdivision thereof, the government of the District of Columbia, or an agency or instrumentality of one or more of the foregoing, by a duly constituted taxing authority having jurisdiction, if the taxation does not discriminate against the officer or employee because of the source of the pay or compensation." SEC. 3. (a) The analysis of chapter 15 of title 18, United States Code, is amended by adding the following: "292. Solicitation of employment and receipt of unapproved fees concerning Federal employees' compensation." 62 Stat. 6 9 7.
 * § 111. Same; taxation affecting Federal employees; income tax

62 Stat. 790.

(b) Chapter 15 of title 18, United States Code, is amended by adding the following new section; ^§ 292. Solicitation of employment and receipt of unapproved fees concerning Federal employees* compensation "Whoever solicits employment for himself or another in respect to a case, claim, or award for compensation under, or to be brought under, subchapter I of chapter 81 of title 5; or "Whoever receives a fee, other consideration, or gratuity on account of legal or other services furnished in respect to a case, claim, or award for compensation under subchapter I of chapter 81 of title 5, unless the fee, consideration, or gratuity is approved by the Secretary of Labor— "Shall, for each offense, be fined not more than $1,000 or imprisoned not more than one year, or both." (c) The analysis of chapter 93 of title 18, United States Code, is amended by adding the following: "1916. "1917. "1918. "1919. "1920. "1921. "1922. "1923.

Unauthorized employment and disposition of lapsed appropriations. Interference with civil service examinations. Disloyalty and asserting the right to strike against the Government. False statement to obtain unemployment compensation for Federal service. False statement to obtain Federal employees' compensation. Receiving Federal employees' compensation after marriage. False or vpithheld report concerning Federal employees' compensation. Fraudulent receipt of payments of missing persons."

(d) Chapter 93 of title 18, United States Code, is amended by adding the following new sections: "§1916. Unauthorized employment and disposition of lapsed appropriations "Whoever— "(1) violates the provision of section 3103 of title 5 that an individual may be employed in the civil service in an Executive

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department at the seat of Government only for services actually rendered in connection with and for the purposes of the appropriation from which he is paid; or "(2) violates the provision of section 5501 of title 5 that money accruing from lapsed salaries or from unused appropriations for salaries shall be covered into the Treasury of the United States; shall be fined not more than $1,000 or imprisoned not more than one year. "§ 1917. Interference with civil service examinations "Whoever, being a member or employee of the United States Civil Service Commission or an individual in the public service, willfully and corruptly— "(1) defeats, deceives, or obstructs an individual in respect of his right of examination according to the rules prescribed by the President under title 5 for the administration of the competitive service and the regulations prescribed by the Commission under section 1302(a) of title 5; "(2) falsely marks, grades, estimates, or reports on the examination or proper standing of an individual examined; "(3) makes a false representation concerning the mark, grade, estimate, or report on the examination or proper standing of an individual examined, or concerning the individual examined; or "(4) furnishes to an individual any special or secret information for the purpose of improving or injuring the prospects or chances of an individual examined, or to be examined, being appointed, employed, or promoted; shall, for each offense, be fined not less than $100 nor more than $1,000 or imprisoned not less than ten days nor more than one year, or both. "§ 1918. Disloyalty and asserting the right to strike against the Government "Whoever violates the provision of section 7311 of title 5 that an individual may not accept or hold a position in the Government of the United States or the government of the District of Columbia if he— "(1) advocates the overthrow of our constitutional form of government; "(2) is a member of an organization that he knows advocates the overthrow of our constitutional form of government; "(3) participates in a strike, or asserts the right to strike, against the Government of the United States or the government of the District of Columbia; or "(4) is a member of an organization of employees of the Government of the United States or of individuals employed by the government of the District of Columbia that he knows asserts the right to strike against the Government of the United States or the government of the District of Columbia; shall be fined not more than $1,000 or imprisoned not more than one year and a day, or both. "§ 1919. False statement to obtain unemployment compensation for Federal service "Whoever makes a false statement or representation of a material fact knowing it to be false, or knowingly fails to disclose a material fact, to obtain or increase for himself or for any other individual any payment authorized to be paid under chapter 85 of title 5 or under an agreement thereunder, shall be fined not more than $1,000 or imprisoned not more than one year, or both.

609

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^°^'' p- ^25.

62 Stat. 847.

PUBLIC LAW 89-554-SEPT. 6, 1966

[80 STAT.

"§1920. False statement to obtain Federal employees* compensation "Whoever makes, in an affidavit or report required by section 8106 of title 5 or in a claim for compensation under subchapter I of chapter 81 of title 5, a statement, knowing it to be false, is guilty of perjury and shall be fined not more than $2,000 or imprisoned not more than one year, or both. "§1921. Receiving Federal employees' compensation after marriage "Whoever, being entitled to compensation under sections 8107-8113 and 8133 of title 5 and whose compensation by the terms of those sections stops or is reduced on his marriage or on the marriage of his dependent, accepts after such marriage any compensation or payment to which he is not entitled shall be fined not more than $2,000 or imprisoned not more than one year, or both. '*§ 1922. False or withheld report concerning Federal employees* compensation "Whoever, being an officer or employee of the United States charged with the responsibility for making the reports of the immediate superior specified by section 8120 of title 6, willfully fails, neglects, or refuses to make any of the reports, or knowingly files a false report, or induces, compels, or directs an injured employee to forego filing of any claim for compensation or other benefits provided under subchapter I of chapter 81 of title 5 or any extension or application thereof, or willfully retains any notice, report, claim, or paper which is required to be filed under that subchapter or any extension or application thereof, or regulations prescribed thereunder, shall be fined not more than $500 or imprisoned not more than one year, or both. "§ 1923. Fraudulent receipt of payments of missing persons "Whoever obtains or receives any money, check, or allotment under— "(1) subchapter VII of chapter 55 of title 5; or «(2) chapter 10 of title 37; without being entitled thereto, with intent to defraud, shall be fined not more than $2,000 or imprisoned not more than one year, or both." (g) rp|^g aualysis of chapter 301 of title 18, United States Code, is amended by adding the following: "4010. Acquisition of additional land. "4011. Disposition of cash collections for meals, laundry, etc."

(f) Chapter 301 of title 18, United States Code, is amended by adding the following new sections: "§ 4010. Acquisition of additional land "The Attorney OJeneral may, when authorized by law, acquire land adjacent to or in the vicinity of a Federal penal or correctional institution if he considers the additional land essential to the protection of the health or safety of the inmates of the institution. "§ 4011. Disposition of cash collections for meals, laundry, etc. "Collections in cash for meals, laundry, barber service, uniform equipment, and other items for which payment is made originally from appropriations for the maintenance and operation of Federal penal and correctional institutions, may be deposited in the Treasury to the credit of the appropriation currently available for those items when the collection is made."

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611

SEC. 4. (a) The analysis of title 28, United States Code, is amended by striking out: "II. UNITED STATES ATTORNEYS AND MARSHALS

501"

and inserting in place thereof: "II. DEPARTMENT OF JUSTICE

501"

(b) Part II of the subanalysis of title 28, United States Code, is amended to read as follows: "PART II—DEPARTMENT OF JUSTICE "31. "33. "35. "37.

THE ATTOBNET GENEBAL FEDERAL BUBEAU OF INVESTIGATION UNITED STATES ATTORNETS UNITED STATES MARSHALS

501 531 541 561"

(c) Part II of title 28, United States Code, is amended to read as follows: "PAKT II—DEPARTMENT OF JUSTICE "CHAPTBB "31. THE ATTORNEY GENERAL "33. FEDERAL BUBEAU OF INVESTIGATION "35. UNITED STATES ATTORNEYS "37. UNITED STATES MARSHALS

Sec. 501 531 541 561

"CHAPTER 31—THE ATTORNEY GENERAL ••Sec. "501. "502. "503. "504. "505. "506. "507. "508. "509. "510. "511. "512. "513. "514. "515. "516. "517. "518. "519. "520. "521. "522. "523. "524. "525. "526.

Executive department. Seal. Attorney General. Deputy Attorney General. Solicitor General. Assistant Attorneys General. Assiistant Attorney General for Administration. Vacancies. Functions of the Attorney General. > Delegation of authority. Attorney General to advise the President. Attorney General to advise heads of executive departments. Attorney General to advise Secretaries of military departments. Legal services on pending claims in departments and agencies. Authority for legal proceedings; commission, oath, and salary for special attorneys. Conduct of litigation reserved to Department of Justice. Interests of United States in pending suita Conduct and argument of cases. Supervision of litigation. Transmission of petitions in Court of Claims; statement furnished by departments. Publication and distribution of opinions. Report of business and statistics. Requisitions. Appropriations for administrative expenses; notarial fees; meals and lodging of bailiffs. Procurement of law books, reference books, and periodicals; sale and exchange. Authority of the Attorney General to investigate United States attorneys and marshals, clerks of court, and others.

"§ 501. Executive department "The Department of Justice is an executive department of the United States at the seat of Government. •*§502. Seal "The Attorney General shall have a seal for the Department of Justice. The design of the seal is subject to the approval of the President.

62 Stat. 9 0 9.

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"§ 503. Attorney General "The President shall appoint, by and with the advice and consent of the Senate, an Attorney General of the United States. The Attorney General is the head of the Department of Justice. "§ 504. Deputy Attorney General "The President may appoint, by and with the advice and consent of the Senate, a Deputy Attorney General. "§ 505. Solicitor General "The President shall appoint in the Department of Justice, by and with the advice and consent of the Senate, a Solicitor General, learned in the law, to assist the Attorney General in the performance of his duties. "The President shall appoint, by and with the advice and consent of the Senate, nine Assistant Attorneys General, who shall assist the Attorney General in the performance of his duties. "§ 507. Assistant Attorney General for Administration " (a) The Attorney General shall appoint, with the appyoval of the President, an Assistant Attorney General for Administration, who shall perform such duties as the Attorney General may prescribe. "(b) The position of Assistant Attorney General for Administration is in the competitive service. "§ 508. Vacancies " (a) In case of a vacancy in the office of Attorney General, or of his absence or disability, the Deputy Attorney General may exercise all the duties of that office, and for the purpose of section 3345 of title 5 the Deputy Attorney General is the first assistant to the Attorney General. " (b) When, by reason of absence, disability, or vacancy in office, neither the Attorney General nor the Deputy Attorney General is available to exercise the duties of the office of Attorney General, the Assistant Attorneys General and the Solicitor General, in such order of succession as the Attorney General may from time to time prescribe, shall act as Attorney General. "All functions of other officers of the Department of Justice and all functions of agencies and employees of the Department of Justice are vested in the Attorney General except the functions— " (1) vested by subchapter II of chapter 5 of title 5 in hearing examiners employed by the Department of Justice; "(2) of the Federal Prison Industries, Inc.; "(3) of the Board of Directors and officers of the Federal Prison Industries, Inc.; and "(4) of the Board of Parole. "The Attorney General may from time to time make such provisions as he considers appropriate authorizing the performance by any other officer, employee, or agency of the Department of Justice of any function of the Attorney General. "§ 511. Attorney General to advise the President "The Attorney General shall give his advice and opinion on questions of law when required by the President.
 * § 506. Assistant Attorneys General
 * § 509. Functions of the Attorney General
 * § 510. Delegation of authority

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