[Federal Register: March 16, 2001 (Volume 66, Number 52)]
[Proposed Rules]
[Page 15202-15203]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16mr01-5]
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Proposed Rules
Federal Register
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This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 537
RIN 3206-AJ33
Repayment of Student Loans
AGENCY: Office of Personnel Management.
ACTION: Proposed rulemaking.
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SUMMARY: The Office of Personnel Management (OPM) is proposing
regulations implementing the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001, to authorize Federal agencies
to repay federally insured student loans when necessary to recruit or
retain highly qualified personnel.
DATES: Written comments will be considered if received no later than
May 15, 2001.
ADDRESSES: Send or deliver written comments to Richard A. Whitford,
Acting Associate Director for Employment, Office of Personnel
Management, Room 6500, 1900 E Street, NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT: Michael J. Mahoney, (202) 606-0830
(FAX 202-606-0390).
SUPPLEMENTARY INFORMATION: The Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 amended 5 U.S.C. 5379. These
amendments: Remove the restriction of this incentive to professional,
technical, or administrative personnel; remove the limitation of this
incentive to employees covered under General Schedule pay rates;
broaden the types of loans which qualify under this part under the
Higher Education Act of 1965 and the Public Health Service Act; require
agencies to report annually to OPM on their use of this incentive; and
require OPM to report annually to Congress on agencies' use of this
incentive. These regulations reflect the amendments to 5 U.S.C. 5379.
The repayment authority is one of several flexibilities made
available to agencies when trying to attract individuals to the Federal
service, or retain highly qualified personnel. The proposed regulations
benefit both agencies and employees by expanding the flexibility of
this existing incentive.
The proposed regulations amend the following: Purpose, Definition
of Employee, Definition of Student Loan, and Records and Reports.
Purpose
This incentive may be used for employees in occupational series
other than professional, technical, or administrative positions.
Definition of Employee
This incentive may be used for employees covered under non-General
Schedule (GS) pay rates, providing the non-GS employee meets the other
criteria specified under this part.
Definition of Student Loan
The proposed regulations expand the type of loans which qualify for
this incentive to include: Subsidized, unsubsidized, Direct subsidized,
and Direct unsubsidized Federal Stafford loans; Federal and Direct
Federal Plus loans; Direct subsidized, Direct unsubsidized, and Federal
Consolidation loans; Defense loans; National Direct Student Loans;
Perkins Loans; Nursing Student Loan Program loans; Health Profession
Student Loan Program loans; and Health Education Assistance Loan
Program loans.
Records and Reports
Agencies will be required to report annually to OPM on their use of
this incentive. Agencies must report to OPM: The number of employees
selected to receive this benefit; the job classifications of the
employees selected to receive this benefit; and the cost for providing
this benefit. Cost is the total amount of student loans repayments, not
the administrative costs associated with administering the program.
E.O. 12866, Regulatory Review
This rule has been reviewed by the Office of Management and Budget
in accordance with Executive Order 12866.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because it affects
only certain Federal employees.
List of Subjects in 5 CFR Part 537
Administrative practice and procedure, Government employees, Wages.
Office of Personnel Management.
Steven R. Cohen,
Acting Director.
Accordingly, OPM proposes to amend part 537 to Title 5, Code of
Federal Regulations, as follows:
PART 537--REPAYMENT OF STUDENT LOANS
1. The authority citation for part 537 continues to read as
follows:
Authority: 5 U.S.C. 5379.
2. Section 537.101 is revised to read as follows:
Sec. 537.101 Purpose.
This part provides regulations to implement 5 U.S.C. 5379, as
amended, which authorizes agencies to establish a program under which
they may agree to repay (by direct payment on behalf of the employee)
all or part of any outstanding federally insured student loan or loans
previously taken out by a candidate to whom an offer of employment has
been made, or a current employee of the agency, in order to recruit or
retain highly qualified personnel.
3. In Sec. 537.102 the definitions of Employee and Student loan are
revised to read as follows:
Sec. 537.102 Definitions.
* * * * *
Employee has the meaning given that term in 5 U.S.C. 2105, except
it does not include an employee occupying a position which is excepted
from the competitive service because of its confidential, policy-
determining, policy-making, or policy advocating character (i.e.,
employees serving under Schedule C appointments).
* * * * *
Student loan means --
(a) A loan made, insured, or guaranteed under parts B, D or E of
title IV of the Higher Education Act of 1965; or
(b) A health education assistance loan made or insured under part A
of title VII of the Public Health Service Act, or under part E of title
VIII of that Act.
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4. In Sec. 537.110 the section heading is revised, the existing
text is designated as paragraph (a), and paragraph (b) is added to read
as follows:
Sec. 537.110 Records and Reports.
* * * * *
(b) Before January lst of each year, each agency must submit a
written report to the Office of Personnel Management stating when the
agency made student loan repayments on behalf of an employee during the
previous fiscal year. Each report must include:
(1) The number of employees selected to receive this benefit;
(2) The job classifications of the employees selected to receive
benefits under this part; and
(3) The cost to the Federal government for providing benefits under
this part.
[FR Doc. 01-6514 Filed 3-15-01; 8:45 am]
BILLING CODE 6325-38-P