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the amount of $5,000 for a spouse and $2,500 for each child described section 8701 (d). The employee may stop coverage elected under this ction at any time.

(c) (1) Optional life insurance on family members shall stop at the rlier of the employee's death, the employee's separation from the rvice, 12 months after discontinuance of pay, or the employee's entry active duty or active duty for training, as provided in sections 8706 1) and 8706 (c) of this title, subject to provision for a 31-day tempory extension of insurance coverage and for conversion to individual clicies under conditions approved by the Office.

(2) In the case of any employee who retires on an immediate annuity who becomes entitled to receive compensation under subchapter I of apter 81 of this title because of disease or injury to the employee and ho has had in force insurance under this section for no less than(A) the 5 years of service immediately preceding the date of retirement or entitlement to compensation, or

(B) the full period or periods of service during which the insurance was available to the employee, if fewer than 5 years, tional life insurance on family members may be continued under e same conditions as provided in section 8714b (c) (2) of this title. (d) (1) During each period in which the optional life insurance on jmily members is in force the full cost thereof shall be withheld from e employee's pay. During each period in which an employee conues optional life insurance on family members after retirement 7 while in receipt of compensation under subchapter I of chapter 81 I this title because of disease or injury to the employee, as provided - subsection (c) of this section, the full cost shall be withheld from e annuity or compensation, except that, beginning at the end of the lendar month in which the former employee becomes 65 years of e, the optional life insurance on family members shall be without st to the employee. Amounts so withheld shall be deposited, used, nd invested as provided in section 8714 of this title and shall be ported and accounted for together with amounts withheld under ction 8714a (d) of this title.

(2) If an agency fails to withhold the proper cost of optional life "surance on family members from an individual's salary, compensaon. or retirement annuity, the collection of amounts properly due ay be waived by the agency if, in the judgment of the agency, the dividual is without fault and recovery would be against equity and od conscience. However, if the agency so waives the collection of my unpaid amount, the agency shall submit an amount equal to the collected amount to the Office for deposit to the Employees' Life Ssurance Fund.

(e) The cost of the optional life insurance on family members shall determined from time to time by the Office on the basis of the ployee's age relative to such age groups as the Office establishes ader section 8714a (e) of this title.

(f) The amount of optional life insurance which is in force under is section on a family member of an employee or former employee the date of the death of the family member shall be paid, on the tablishment of a valid claim by the employee, to such employee or,

in the event of the death of the employee before payment can b made, to the person or persons entitled to the group life insurance i force on the employee under section 8705 of this title. (Added Pub. I 96-427, Oct. 10, 1980, 94 Stat. 1836.)

§ 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 agains the United States founded on this chapter. (Pub. L. 89-554, Sept. 1966, 80 Stat. 599.)

§ 8716. Regulations

(a) The Office of Personnel Management may prescribe regulation necessary to carry out the purposes of this chapter.

(b) The regulations of the Office may prescribe the time at whic and the conditions under which an employee is eligible for coverag under this chapter. The Office, after consulting the head of the agen or other employing authority concerned, may exclude an employee c the basis of the nature and type of his employment or conditions pe taining to it, such as short-term appointment, seasonal, intermitte employment, and employment of like nature. The Office may n exclude

(1) an employee or group of employees soley on the basis the hazardous nature of employment;

(2) a teacher in the employ of the Board of Education of t District of Columbia, whose pay is fixed by section 1501 of tit 31, District of Columbia Code, on the basis of the fact that t teacher is serving under a temporary appointment if the teach has been so employed by the Board for a period or periods tot: ing not less than two school years; or

(3) an employee who is occuping a position on a part-ti career employment basis (as defined in section 3401(2) of t title).

(c) The Secretary of Agriculture shall prescribe regulations effect the application and operation of this chapter to an individ named by section 8701 (a) (8) of this title. (Pub. L. 89-554, Sept. 1966, 80 Stat. 599: amended Pub. L. 95-437. Oct. 10, 1978, 92 Stat. 10. Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224 and 1227.)

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Types of benefits.

Election of coverage.

Contributions.

Information to employees.

Coverage of restored employees and survivor annuitants.

Employees Health Benefits Fund.

Studies, reports, and audits.

Advisory committee.

Jurisdiction of courts.

Regulations.

$901. 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; and (G) 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) an individual who is not a citizen or national of the United States and whose permanent duty station is outside the United States, unless the individual was an employee for the purpose of this chapter on September 30, 1979, by reason of service in an Executive agency, the United States Postal Service, or the Smithsonian Institution in the area which was then known as the Canal Zone;

(iii) an employee of the Tennessee Valley Authority; or (iv) an employee excluded by regulation of the Office of Personnel Management 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 5 or more years of service or for disability;

(B) a member of a family who receives an immediate annuity as the survivor of an employee or of a retired employee described by subparagraph (A) of this paragraph;

(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 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:

(5) "member of family" means the spouse of an employee or annuitant and an unmarried dependent child under 22 years of age, including

(A) an adopted child or recognized natural child; and (B) a stepchild or foster child but only if the child lives with the employee or annuitant in a regular parent-child relationship;

or such an unmarried dependent child regardless of age who is incapable of self-support because of mental or physical disability which existed before age 22;

(6) "health benefits plan" means a group insurance policy or contract, medical or hospital service agreement, membership or subscription contract, or similar group arrangements 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 of, 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;

(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, after December 31, 1978, and before January 1, 1980. applied to the Office for approval of a plan provided under section 8903 (3) of this title; and

(9) "dependent", in the case of any child, means that the employee or annuitant involved is either living with or contributing to the support of such child, as determined in accordance with such regulations as the Office shall prescribe.

(Pub. L. 89-554, Sept. 6, 1966, 80 Stat. 600, amended Pub. L. 90-83, 1(95), Sept. 11, 1967, 81 Stat. 219; Pub. L. 91-418, §§ 2, 3 (b), Sept. 25, 1970, 84 Stat. 869; Pub. L. 93-160, Nov. 27, 1973, 87 Stat. 635; Pub. L. 95-368, § 2, Sept. 17, 1978, 92 Stat. 606; Pub. L. 95-454, Oct. 13, 1978, 92 Stat. 1224; Pub. L. 95-583, Nov. 2, 1978, 92 Stat. 2482; Pub. L. 96-54, Aug. 14, 1979, 93 Stat. 384; Pub. L. 96-70, Sept. 27, 1979, 93 Stat. 463; Pub. L. 96-179, Jan. 2, 1980, 93 Stat. 1299.) §8902. Contracting authority

(a) The Office of Personnel Management 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 Office; 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 Office.

(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 Office considers necessary or desirable.

(e) The Office may prescribe reasonable minimum standards for health benefits plans described by section 8903 of this title and for arriers 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 Office may terminate the contract of a carrier effective et the end of the contract term, if the Office finds that at no ime during the preceding two contract terms did the carrier have 300 or more employees and annuitants, exclusive of family members, nrolled in the plan.

(f) A contract may not be made or a plan approved which excludes in individual because of race, sex, health status, or, at the time of the rst opportunity to enroll, because of age.

(g) A contract may not be made or a plan approved which does not. ffer to each employee or annuitant whose enrollment in the plan is nded, except by a cancellation of enrollment, a temporary extension

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