Skip to main content
An Official Website Of The United States Government
Acquisition.gov
  • Covid 19
  • Section 889
  • Regulations

    FAR

    Smart MatrixFAR Smart Matrix

    Chapter 99 Chapter 99 (CAS)

    • DFARS DFARS
    • DFARSPGI DFARSPGI
    • AFARS AFARS
    • AFFARS AFFARS
    • DARS DARS
    • DLAD DLAD
    • NMCARS NMCARS
    • SOFARS SOFARS
    • TRANSFARS TRANSFARS
    • AGAR AGAR
    • AIDAR AIDAR
    • CAR CAR
    • DEARS DEAR
    • DIARS DIAR
    • DOLARS DOLAR
    • DOSARS DOSAR
    • AGAR DTAR
    • EDAR EDAR
    • EPAAR EPAAR
    • FEBAR FEHBAR
    • GSAM GSAM/R
    • HHSAR HHSAR
    • HSAR HSAR
    • HUDAR HUDAR
    • IAAR IAAR
    • JAR JAR
    • LIFAR LIFAR
    • NFS NFS
    • NRCAR NRCAR
    • TAR TAR
    • VAAR VAAR
  • Archives
  • Policy Network
    • CAO.gov
    • Civilian Agency Acquisition Council (CAAC)
    • Federal Acquisition Regulatory Council
    • Interagency Suspension and Debarment Committee (ISDC)
  • Search
    Search:
    Website
    Regulations
Part Number: 
  • 2101
  • 2102
  • 2103
  • 2104
  • 2105
  • 2106
  • 2109
  • 2110
  • 2114
  • 2115
  • 2116
  • 2122
  • 2124
  • 2128
  • 2129
  • 2131
  • 2132
  • 2133
  • 2137
  • 2143
  • 2144
  • 2146
  • 2149
  • 2152
  • 2152-M
Add Bookmark Open Bookmark Print Document Download PDF Document

HomeRegulationsLIFARLIFAR Part 2132—Contract Financing
Life Insurance Federal Acquisition Regulationslifar

Life Insurance Federal Acquisition Regulations


My Favorites

add this page

Previous Page

Table Of Contents

Next Page

LIFAR PART 2132—CONTRACT FINANCING


PART 2132—CONTRACT FINANCING

  • Subpart 2132.1—General
    • 2132.170 Recurring premium payments to Contractors.
    • 2132.171 Contract clause.
  • Subpart 2132.6—Contract Debts
    • 2132.607 Tax credit.
    • 2132.617 Contract clause.
  • Subpart 2132.7—Contract Funding
    • 2132.770 Insurance premium payments and special contingency reserve.
    • 2132.771 Non-commingling of FEGLI Program funds.
    • 2132.772 Contract clause.
  • Subpart 2132.8—Assignment of Claims
    • 2132.806 Contract clause.

PART 2132—CONTRACT FINANCING

Section Contents

Subpart 2132.1—General

  2132.170 Recurring premium payments to Contractors.  2132.171 Contract clause.

Subpart 2132.6—Contract Debts

  2132.607 Tax credit.  2132.617 Contract clause.

Subpart 2132.7—Contract Funding

  2132.770 Insurance premium payments and special contingency reserve.  2132.771 Non-commingling of FEGLI Program funds.  2132.772 Contract clause.

Subpart 2132.8—Assignment of Claims

  2132.806 Contract clause. 

Authority: 5 U.S.C. 8716; 40 U.S.C. 486(c); 48 CFR 1.301.

Source: 58 FR 40379, July 28, 1993, unless otherwise noted.

Subpart 2132.1—General

2132.170 Recurring premium payments to Contractors.

(a) OPM will make payments on a letter of credit (LOC) basis. OPM and the Contractor will concur on an estimate of benefits and administrative costs plus the fixed service or risk charge for the forthcoming contract year, as specified in the contract. The annual premium to the Contractor, based on this estimate, will be credited to the Contractor's LOC account in 12 equal monthly installments due on the first business day of each month and available for drawdown. OPM will credit the Contractor's LOC account for the December payment no later than the last business day of each calendar year. Following the close of the contract year, a reconciliation of premiums, benefits, and other costs will be performed as a limited cost redetermination. In addition, interest distribution payments will be made available for Contractor drawdown from the LOC account. The Contractor will use the LOC account in accordance with guidelines issued by OPM.

(b) Withdrawals from the LOC account for benefit costs of $5,000 or more will be made on a claims-paid basis. Withdrawals from the LOC account for benefit costs of less than $5,000 and other FEGLI Program disbursements will be made on a checks-presented basis. Under a checks-presented basis, drawdown on the LOC is delayed until the checks issued for FEGLI Program disbursements are presented to the Contractor's bank for payment.

(c) Nothing in this chapter will affect the ability of the Contractor to hold the special contingency reserve established and maintained in accordance with the terms of 5 U.S.C. 8712.

[70 FR 41153, July 18, 2005]

2132.171 Contract clause.

The clause at

2152.232–70 shall be inserted in all FEGLI Program contracts.

Subpart 2132.6—Contract Debts

2132.607 Tax credit.

FAR 32.607 has no practical application to FEGLI Program contracts. The statutory provisions at 5 U.S.C. 8707 and 8708 authorize joint enrollee and Government contributions to the Employees' Life Insurance Fund. Because the Fund is comprised of contributions by enrollees as well as the Government, contractors may not offset debts to the Fund by a tax credit that is solely a Government obligation.

2132.617 Contract clause.

The clause at

FAR 52.232–17 is modified in FEGLI Program contracts to exclude the parenthetical phrase “(net of any applicable tax credit under the Internal Revenue Code (26 U.S.C. 1481)).”

Subpart 2132.7—Contract Funding

2132.770 Insurance premium payments and special contingency reserve.

Insurance premium payments and a special contingency reserve are made available to FEGLI Program contractors in accordance with 5 U.S.C. 8712 and 8714.

2132.771 Non-commingling of FEGLI Program funds.

(a) FEGLI Program funds must be maintained in such a manner as to be separately identifiable from other assets of the Contractor. Cash and investment balances reported on the FEGLI Program Annual Financial Report must be supported by the Contractor's books and records.

(b) This requirement may be modified by the Contracting Officer in accordance with the clause at

2152.232–71 of this chapter when adequate accounting and other controls are in effect. If the requirement is modified, such modification will remain in effect until rescinded by OPM.

[70 FR 41153, July 18, 2005]

2132.772 Contract clause.

The clause at

2152.232–71 shall be inserted in all FEGLI Program contracts.

Subpart 2132.8—Assignment of Claims

2132.806 Contract clause.

The clause set forth in

2152.232–72 shall be inserted in all FEGLI Program contracts.

Previous PageTop Of Page

Table Of Contents

Next Page


Sign up for FAR News

Share the FAR

twitter rss mail

Useful Links

FAR Resources

Training

Acquisition Systems

Contact Us | Privacy and Security Notice | Accessibility Aids | Last updated 01/16/21

GSA logo

This is a U. S. General Services Administration Federal Government computer system that is
"FOR OFFICIAL USE ONLY."
This system is subject to monitoring. Individuals found performing unauthorized activities are subject to disciplinary action including criminal prosecution.