5 U.S.C. § 8707 — Employee deductions; withholding

(a) Except as subsection (c)(2) allows, during each period an employee is insured under a policy the Office of Personnel Management buys under section 8709, a share of the cost of the group life and accidental death and dismemberment insurance must be withheld from the employee's pay. (b) (1) Except as subsection (c)(2) allows, whenever life insurance continues after an employee retires on an immediate annuity, or while receiving compensation under subchapter I of chapter 81 for a work-related disease or injury, as section 8706(b) provides, deductions for insurance are withheld from the employee's annuity or compensation instead — except that if insurance continues as section 8706(b)(3)(A) provides, no deductions are made for months after the employee turns 65. (2) Despite paragraph (1), insurance continues without cost (other than as section 8706(b)(3)(B) provides) for each employee who retires, or starts receiving compensation, on or before December 31, 1989. (c) (1) The amount withheld from an employee's pay, annuity, or compensation is set, rounded to the nearest half-cent, at 66⅔ percent of the level cost the Office determines for each $1,000 of the employee's basic insurance amount. (2) An employee subject to these withholdings whose pay, annuity, or compensation isn't enough to cover them may still continue insurance by arranging to pay directly into the Employees' Life Insurance Fund, through the agency or retirement system that administers their pay, an amount equal to the withholdings otherwise required. (d) If an agency fails to withhold the correct amount of life insurance deductions from someone's pay, compensation, or retirement annuity, the agency may waive collecting the unpaid deductions if it judges the individual was without fault and recovery would be unfair. But if the agency waives collection, it must submit an amount equal to the uncollected deductions plus the related agency contributions required under section 8708 to the Office, for deposit into the Employees' Life Insurance Fund.