OPM Releases Proposed Rule on Continuation of Benefits, Services During Government Shutdown

In a proposed rule submitted to the Federal Register on July 20, the Office of Personnel Management implements provisions within the FY 2020 National Defense Authorization Act (FY 2020 NDAA) that ensure the continuation of certain federal benefits and services in the event of a lapse in appropriations. The FY 2020 NDAA names certain Federal Employees Health Benefits (FEHB) Program and Federal Employees' Group Life Insurance (FEGLI) services as emergency services under the Antideficiency Act.

Under the law, FEHB and FEGLI benefits are considered “services for emergencies involving the safety of human life or the protection of property.” This means employees furloughed as a result of appropriations lapses will be deemed to be in “pay status” for purposes of in enrolling in or changing enrollment in the FEHB Program.

Next, the proposed rule implements a provision within the FY 2020 NDAA which authorizes the continuation of Federal Employees Dental and Vision Insurance Program (FEDVIP) and the Federal Long Term Care Insurance Program (FLTCIP) for enrollees who are furloughed or excepted from furlough and working without pay during an appropriations lapse.

Under the proposed rule, employee coverage under FEDVIP and FLTCIP cannot be cancelled as a result of nonpayment of premiums during appropriations lapses.

Under the proposal, once agencies are appropriated funds and employees receive back pay, FEDVIP and FLTCIP premiums will be deducted from the back pay or may be paid from another source for FLTCIP enrollees who make payments directly to the carrier.

While the guidance admits that the rulemaking will likely not have an economic effect of $100 million or more, it is still designated as a “significant regulatory action” and has been reviewed by the Office of Management and Budget.

OPM is currently seeking general comments regarding the impact of this regulation.

Federal employees and members of the public can submit comments on the proposed rule on or before August 19, 2020, with information on how to do so available here: https://www.federalregister.gov/documents/2020/07/20/2020-14474/designation-of-certain-services-as-emergency-services-under-the-antideficiency-act-lapse-in