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OPM announced changes in premiums effective 1/1/2012 for certain Federal
Employees’ Group Life Insurance (FEGLI) categories. These include
changes to premiums for Option B (most age bands), Option C (all age
bands), and Post-Retirement Basic Insurance (for annuitants only). There
will be no change in premiums for Basic Employee or Option A coverage.
Federal Employees Group Life Insurance (FEGLI) provides group term life
insurance. As such, it does not build up any cash value or paid-up value. It
consists of Basic life insurance coverage and three options. In addition to the
Basic, there are three forms of Optional insurance that you can elect. You must
have Basic insurance in order to elect any of the options. Unlike Basic,
enrollment in Optional insurance is not automatic -- you must take action to
elect the options. Evaluate your insurance
needs to determine how much coverage to maintain when you retire.
The cost of Basic insurance is shared between you and the Government. You pay
2/3 of the total cost and the Government pays 1/3. Your age does not affect the
cost of Basic insurance. You pay the full cost of Optional insurance, and the
cost depends on your age.
The Office of Federal Employees' Group Life Insurance (OFEGLI), which is a
private entity under contract with the Federal Government, processes and pays
claims under the FEGLI Program. Your beneficiaries must submit a claim to the
OFEGLI to collect on the policy. Survivors can call them at
1-800-633-4542 to follow-up on submitted claims. See the
Survivor's page for additional reporting procedures.
The annuitant costs for all options are listed on our
Annuitant's FEGLI Rate page.
Current employee
rates are listed separately. You can
elect to keep full coverage, 50% reduction or 75% reduction. The reductions
don't start until you reach age 65 and with the 75% reduction you pay nothing
from age 65 on. The SF-2801 form also lists
everything you will need to know before making your selection.
I elected the 75% reduction when I retired. When I turn 65 I pay nothing and
my coverage decreases to 25% of my full coverage over a period of
approximately 2 years. I had additional private sector coverage and between
the FEGLI reduced amount and my private insurance there will be sufficient
coverage for my family's needs.
Dennis V. Damp, Retired FAA
Before you make an election I suggest that you review
your estate first. An excellent resource for this is
"Plan Your Estate." This book will help
you evaluate your personal situation and this evaluation will help you determine
how much insurance you will need in retirement.
CAUTION - Common-law & Same-sex Marriage Beneficiary Issues
FEGLI does not recognize
common-law marriages when distributing funds according to the
standard order of precedence in 5 U.S.C. 8705(a).
An employee who wants to leave FEGLI benefits to a
same-sex
partner, common-law spouse, or other person may complete a Standard
Form 2823, Designation of Beneficiary. In block B the employee may name
that person as beneficiary.
Federal retirees, unless they have
assigned
their life insurance, may cancel Basic or Optional life insurance coverage
at any time. Any cancellation or reduction of life insurance coverage must
be in writing and have an original signature by the insured retiree. Be sure
to include your retirement claim number (CSA number) or social security
number and specify what action you want taken.
Please note that you cannot increase your coverage after
retirement, or reinstate any coverage that you cancel.
Write to: U.S. Office of Personnel Management Retirement Operations
Center P.O. Box 45 Boyers, PA 16017-0045 The FEGLI election form is usually
for employees, but I would complete it and send it with your written request
for the reduction.
http://www.opm.gov/forms/pdf_fill/sf2817.pdf
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