Mr. MICA. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, the bill before the House today, entitled the Federal Employees Life Insurance Improvement Act, is in fact a bipartisan effort. It incorporates the provisions of the bill which I originally introduced and amendments offered by the distinguished gentleman from Maryland [Mr. Cummings], the ranking member of our Subcommittee on Civil Service.
I thank the gentleman from Maryland for his hard work on this legislation and also for his close cooperation on putting this legislation together.
The bill also addresses an issue first brought to our attention by the distinguished gentlewoman from Maryland [Mrs. Morella], and I also want to commend her for her interest and contributions to this bill.
Mr. Speaker, employer-provided benefit packages are in fact critical elements of employee compensation in our society today. If the Federal Government is to deliver the quality of services our overburdened taxpayers deserve, it must be competitive with the private sector to attract and to maintain a quality work force. Benefits must provide good value to Federal employees.
Mr. Speaker, earlier this year I held an oversight hearing on the Federal Employees Government Life Insurance program. I called that hearing because I was concerned that the current program does not deliver the value Federal Government employees deserve. It has been in fact too many years since key parts of the life insurance program have been improved or in fact reviewed.
More importantly, Congress has not even looked at the fundamental structure of the program since 1954. For 43 years, Mr. Speaker, the program has been based on term life insurance. For the first time in 43 years, this bill would introduce a life insurance option other than term insurance for our Federal employees.
Many things have changed between 1954 and today, Mr. Speaker. Life insurance products are no exception. As usual, the private sector has led the way. The Federal Government must learn from the private sector. We must adopt benefit practices from the private sector that have adjusted to the dynamic, ever-shifting market environments.
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At our hearing, the Subcommittee on Civil Service heard from interested private sector insurance experts. We also heard from Met Life, which has been the sole provider of life insurance under the program since 1954. All of these experts agreed that it is time for major improvements in the Federal Government's life insurance program. All of these experts agreed that, at the very least, Congress should increase coverages that are currently available. All of these experts agreed that Congress should consider providing a new option to employees, group universal life insurance.
In a nutshell, Mr. Speaker, group universal life is a very flexible plan that permits employees to accumulate cash benefits for use in later years for various family needs or for their retirement. It has been gaining popularity in the private sector because it offers these many advantages.
Insurance planning is important to many of our employees. Employees want and need to protect their families from financial hardship. Life insurance is an important component of that protection. My colleagues on the subcommittee agreed that our Federal employees in fact need more flexibility to tailor insurance coverage to their own needs. To better protect their families, Federal employees would be able to choose from options that are increasingly available to employees in the private sector such as group universal life.
This bill does just that. It directs the Office of Personnel Management to present to Congress legislation offering our Federal employees group universal life insurance, group variable life insurance, and additional voluntary accidental and dismemberment insurance policies. In addition, Mr. Speaker, this bill permits employees to increase insurance coverage of family members and to maintain more adequate levels of coverage on themselves throughout their retirement years.
Mr. Speaker, the hallmarks of this legislation are family protection, employee choice, and flexibility. Federal employees and their families will enjoy more options as they plan for their financial security. It is an important bill. It is important to our Federal employees. It is the first major improvement in life insurance benefits for our Federal employees in 16 years. It is the first time in 43 years that an alternative to term insurance is incorporated for the benefit of our Federal employees.
I urge all Members to support this legislation.
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