[Federal Register: December 24, 2003 (Volume 68, Number 247)]
[Proposed Rules]
[Page 74513]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24de03-25]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
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.
========================================================================
[[Page 74513]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 890
RIN 3206-AI37
Federal Employees Health Benefits Program: Effective Dates
AGENCY: Office of Personnel Management.
ACTION: Notice of withdrawal of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: The Office of Personnel Management (OPM) is withdrawing its
proposal to revise the regulations on adopting January 1 as the
effective date for all annual open season enrollment changes and new
enrollments in the Federal Employees Health Benefits Program (FEHB)
which was published August 31, 1998, FR Doc. 98-23335. The regulation
would have changed the existing FEHB regulations concerning the
effective date from the 1st day of the first pay period in the new
calendar year. This regulation would have concurrently changed the
effective date of open season changes in enrollment made by employees,
annuitants, former spouses and individuals enrolled under the temporary
continuation of coverage (TCC) provisions of FEHB law.
The proposed regulation would have standardized the effective date
of most of these new enrollments or changes in enrollment and made it
consistent with the beginning of health benefits offered by FEHB plans,
which are based on the calendar year. The intent of the regulation was
to make it easier for employing offices and health plan carriers to
administer the Program and reduce the potential for errors in
determining effective dates.
The comment period for the proposed regulation ended September 30,
1998. OPM received comments from agencies that their automated payroll
systems were not functionally capable of pro-rating employees' premium
shares on other than a pay period basis. January 1 typically falls in
the middle of a bi-weekly pay period, the most prevalent pay period
used by Federal agencies. Therefore, most agencies would be required to
accurately allocate the pro rata premiums to employees' pay on a timely
basis. Some agencies reported that they simply would be unable to pro-
rate premiums from January 1 to the beginning of the first pay period
in the calendar year. Since 1998, OPM has subsequently raised this
issue with agencies with similar responses.
OPM is responsible for the Administration's new e-Payroll
initiative, part of the President's Management Agenda. This initiative
is designed to modernize the Government's payroll system. OPM has
selected four payroll service providers to replace the current 22
providers for the Federal government's 1.8 million employees. Under the
e-Payroll initiative plan, the four providers will begin government-
wide processing in September 2004. Once these new systems are in place,
we will reconsider the status of this proposed FEHB rulemaking.
FOR FURTHER INFORMATION CONTACT: Anne Easton on (202) 606-0004.
Office of Personnel Management.
Kay Coles James,
Director.
[FR Doc. 03-31768 Filed 12-23-03; 8:45 am]
BILLING CODE 6325-50-P