June 6, 2000

SUBJECT: Professional Liability Insurance

Section 636 of the Treasury, Postal Service, and General Appropriations Act for Fiscal Year 1997, Pub. L. 104-208, as amended, requires agencies to reimburse qualified employees for up to one-half the cost incurred for professional liability insurance. Authority to make such payments resides with heads of DoD Components and may be delegated to the lowest practical level.

The Office of Personnel Management (OPM) does not plan to issue regulatory guidance on this issue. Therefore, in coordination with the Defense Finance and Accounting Service and the DoD Office of the General Counsel, we have prepared the attached DoD guidance to assist in implementing this new authority. The provisions of this new authority became effective October 1, 1999.

In February 1998, OPM surveyed Federal agencies on the implementation of Pub. L. 104-208 (which, in its original form, allowed Federal agencies to contribute to the costs of professional liability insurance). Based on this past practice, DoD Components may wish to maintain documentation on reimbursements for professional liability insurance should OPM survey Federal agencies in the future.

Servicing personnel office staffs should contact David Pearson at (703) 696-6301, ext. 252 for operational related issues.

//original signed//
Diane M. Disney
Deputy Assistant Secretary of Defense
(Civilian Personnel Policy)

Attachment: As stated

DoD PLI Guidance

Statutory and United States Code Provisions