NASA Procedural Requirements

NPR 9260.1A Effective Date: February 09, 2015 Expiration Date: February 09, 2029

Subject: Liabilities (Revalidated with Change 2 April 19, 2023)

Responsible Office: Office of the Chief Financial Officer

Chapter 4 Employee Benefits

4.1 Overview

4.1.1 This chapter prescribes the procedures for recording and reporting liabilities associated with NASA employees' benefits. These benefits include life and health insurance, retirement, and other benefits.

4.1.2 NASA will recognize its share of the costs of providing pension benefits, health and life insurance benefits, and annual leave to its employees.

4.1.3 NASA will record its share of expenses for providing pension and post-retirement health benefits and life insurance to its future retirees. Factors used in the calculation of these expenses are provided by the Office of Personnel Management (OPM).

4.2 Recognizing Liability for Pension Benefits

4.2.1 Civil Service Retirement System (CSRS). NASA will contribute biweekly amounts, equal to employee deductions, from the appropriation or fund used to pay the employee, pursuant to 5 U.S.C. § 8334. The NASA and employee's contributions will be deposited in the U.S. Treasury to the credit of the Civil Service Retirement Fund. At year end, an appropriate journal entry will be prepared to record NASA's accrued CSRS pension liability.

4.2.2 Federal Employee Retirement System (FERS). NASA will contribute biweekly amounts, pursuant to 5 U.S.C. § 8423, from the appropriation or fund used to pay the employee. The NASA and employee's contributions will be deposited to the U.S. Treasury to the credit of the Federal Employee Retirement Fund. At year end, an appropriate journal entry will be prepared to record NASA's accrued FERS pension liability.

4.3 Recognizing Liability for Other Benefits

4.3.1 Federal Employees' Compensation Account (FECA). The Department of Labor administers FECA, which provides income and medical cost protection to covered Federal civilian employees injured on the job, employees who have incurred a work-related occupational disease, and beneficiaries of employees whose death is attributable to a job-related injury or occupational disease. The FECA program initially pays valid claims and subsequently seeks reimbursement from the Federal agencies employing the claimants. Pursuant to 5 U.S.C. § 8509, NASA will make deposits each calendar quarter into the FECA Account. NASA's FECA liability also includes the actuarial liability of estimated future costs of death benefits, workers' compensation, and medical and miscellaneous costs for approved compensation cases.

4.3.2 Health Benefits. Pursuant to 5 U.S.C. § 8906, NASA will pay up to 75 percent of the health benefits subscription charges established by OPM as the biweekly contribution for an employee or annuitant enrolled in a health benefit plan procured by the Federal Government. At year end, an appropriate journal entry will be prepared to record NASA's accrued health benefits liability.

4.3.3 Group Life Insurance Benefits. Pursuant to 5 U.S.C. § 8708, each payroll period that an employee is insured, NASA will pay one half the amount that is withheld from the pay of the employee toward the cost of the group life insurance and accidental death and dismemberment insurance from the appropriation used to pay the employee. At year end, an appropriate journal entry will be prepared to record NASA's accrued life insurance liability.

4.3.4 Annual Leave Benefits. NASA will make biweekly contributions for these benefit costs and will accrue such costs at year end for any existing liabilities for these benefits. NASA will adjust accrued annual balances at the end of the fiscal year to reflect current pay rates for employee annual leave that has been earned, but not yet taken. If current appropriations are not available to fund annual leave earned but not taken, funding will be obtained from future financing sources.

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