Office of Federal Contract Compliance Programs (OFCCP)
NOTICE OF RESCISSION
U.S. DEPARTMENT OF LABOR
Office of Federal Contract Compliance Programs
Number: 303 Date: Oct 3, 2012 ADM Notice/Rescission
1. SUBJECT: Notice of Rescission
2. PURPOSE: To rescind Information Notice 77-11, Reinsurance Companies Covered by Government Contracts Under Executive Order 11246, issued February 16, 1977.
3. BACKGROUND: Information Notice 77-11 addresses OFCCP jurisdictional coverage of companies serving as reinsurers to Metropolitan Life Insurance Company's (MetLife) contract for the Federal Employees Group Life Insurance (FEGLI) program under Executive Order 11246. The notice was issued in 1977 to clarify jurisdiction and provide a list of the over 350 reinsurance companies that were subcontractors to MetLife.
A Government Accountability Office report indicates that only ten companies participated as reinsurers in 2011, with MetLife providing the majority of FEGLI's reinsurance. In addition, the report indicates that the Office of Personnel Management "pays each of the ten reinsurers approximately $500 annually for their participation in the program, and FEGLI has never had to use this reinsurance coverage."  While these changes to the FEGLI program make Information Notice 77-11 obsolete, the general principle regarding coverage based on a subcontractor relationship in the reinsurance context has not changed. Therefore, OFCCP has posted a Frequently Asked Question on its Web sites to provide guidance regarding coverage of subcontractors serving as reinsurers under the FEGLI program.
4. EFFECTIVE DATE: This Notice is effective immediately.
5. OBSOLETE DATA: Information Notice 77-11, Reinsurance Companies Covered by Government Contracts Under Executive Order 11246, issued February 16, 1977.
6. DISTRIBUTION: A, B (both hard copy and electronically); C (hard copy only)
7. EXPIRATION DATE: None.
PATRICIA A. SHIU
Director, Office of Federal Contract Compliance
1. Report #GAO-12-94, available at http://www.gao.gov/products/GAO-12-94.