Page:United States Statutes at Large Volume 94 Part 2.djvu/559

 PUBLIC LAW 96-427—OCT. 10, 1980

94 STAT. 1837

in subsection (c) of this section, the full cost shall be withheld from the annuity or compensation, except that, beginning at the end of the calendar month in which the former employee becomes 65 years of age, the optional life insurance on family members shall be without cost to the employee. Amounts so withheld shall be deposited, used, and invested as provided in section 8714 of this title and shall be 5 USC 8714. reported and accounted for together with amounts withheld under 5 USC 8714a. section 8714a(d) of this title. "(2) If an agency fails to withhold the proper cost of optional life Waiver. insurance on family members from an individual's salary, compensation, or retirement annuity, the collection of amounts properly due may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any unpaid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees' Life Insurance Fund. "(e) The cost of the optional life insurance on family members shall be determined from time to time by the Office on the basis of the employee's age relative to such age groups as the Office establishes under section 8714a(e) of this title. "(f) The amount of optional life insurance which is in force under this section on a family member of an employee or former employee on the date of the death of the family member shall be paid, on the establishment of a valid claim by the employee, to such employee or, in the event of the death of the employee before payment can be made, to the person or persons entitled to the group life insurance in 5 USC 8705. force on the employee under section 8705 of this title.". O> Section 8701 of title 5 is further amended by inserting at the end Ante, p. 1831. t) thereof the following new subsection: "(d)(1) For the purpose of this chapter, 'family member*, when used "Family member." with respect to any individual, means— "(A) the spouse of the individual; and "(B) an unmarried dependent child of the individual (other than a stillborn child), including an adopted child, stepchild (but only if the stepchild lived with the individual in a regular parentchild relationship), or recognized natural child— "(i) who is less than 22 years of age, or "(ii) who is 22 years of age or older and is incapable of selfsupport because of a mental or physical disability which existed before the child became 22 years of age. "(2) For the purpose of this subsection, 'dependent', in the case of "Dependent." any child, means that the individual involved was, at the time of the child's death, either living with or contributing to the support of the child, as determined in accordance with the regulations the Office shall prescribe.". (c) The table of sections for chapter 87 of such title 5 is amended by inserting after the item relating to section 8714b (as added by section 7 of this Act) the following new item: "8714c. Optional life insurance on family members.". REPEAL OP SECTION 8713 OP TITLE 5

SEC. 9. (a) Section 8713 of title 5, United States Code, is repealed. (b) The table of sections for chapter 87 of title 5 is amended by striking out the item relating to section 8713.

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