Federal Employees' Group Life Insurance (FEGLI) Program Handbook

April 2014

Federal Employees’ Group

Life Insurance (FEGLI)

Program Handbook

INTRODUCTION

 What Is FEGLI?

 FEGLI at a Glance

 OPM Responsibilities

 OFEGLI Responsibilities

 Agency Responsibilities

 Insured Individual Responsibilities

 Correction of Errors

 Incontestability

 Initial Decision and Reconsideration

 Historical Information

WHAT IS FEGLI?

The Federal Employees’ Group Life Insurance (FEGLI) Program is a life insurance program

for Federal and Postal employees and annuitants, authorized by law (Chapter 87 of Title 5,

United States Code). The Office of Personnel Management (OPM) administers the Program

and sets the premiums. The FEGLI regulations are in Title 5 of the Code of Federal

Regulations, Part 870.

FEGLI is group term life insurance. It does not build up cash value. You cannot take a loan

out against your FEGLI insurance.

OPM has a contract with the Metropolitan Life Insurance Company (MetLife) to provide this life

insurance. MetLife has an administrative office called the Office of Federal Employees’ Group

Life Insurance (OFEGLI). OFEGLI is the contractor that adjudicates claims under the FEGLI

Program.

FEGLI AT A GLANCE

 Purpose

 Law and Regulations

 Basic Insurance

 Optional Insurance

 Accidental Death and

Dismemberment Benefits

 Initial Election

 Effective Date

 Effect of Separation from Service

on Waiver

 Termination of Insurance

 31-Day Extension of Coverage and

Conversion of Insurance

 Eligibility for Life Insurance as an

Annuitant or Compensationer

 Post-65 Reductions in the Amount

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 Waiver/Cancellation of Insurance

 Cancellation of Waiver by

Proving Insurability

 Cancellation of Waiver Due to

Life Event

 Open Seasons

 Nonpay Status

of Insurance

 Order of Precedence

 Designation of Beneficiary

 Court Orders

 Assignment

 Living Benefits

 Filing a Claim

Purpose

This section provides a summary of the major features of the Federal Employees' Group Life

Insurance (FEGLI) Program. This information is repeated in more detail in the individual

chapters of this Handbook. This section also provides links from the summary information to the

individual chapter that provides more detailed information on each topic.

Law and Regulations

Public Law 83-598 authorized the creation of the FEGLI Program; the law governing the

Program is found in Chapter 87 of Title 5, United States Code. FEGLI Program regulations are

found in part 870 of Title 5, Code of Federal Regulations. Links to the law and regulations are on

the FEGLI homepage at http://www.opm.gov/healthcare-insurance/life-insurance/reference-

materials/.

Basic Insurance

As an eligible employee, you are automatically enrolled in Basic insurance unless you waive this

coverage. Basic insurance covers your life for whichever is greater:

1) Your annual rate of basic pay, rounded up to the next even $1,000, plus $2,000; or

2) $10,000.

This is called the Basic Insurance Amount, or BIA. The Government pays one-third of the

premium cost for Basic and you pay two-thirds. The U.S. Postal Service pays the entire cost of

Basic insurance for its employees.

If you are under age 45, you automatically have extra coverage without paying any additional

premium. This Extra Benefit increases the amount of Basic insurance payable at the time of

your death if you die before age 45.

U.S. Office Of Personnel Management

Optional Insurance

If you have Basic insurance, you may also elect Optional insurance. You are not automatically

covered by Optional insurance like you are with Basic insurance. You must take action to elect

Optional insurance. You pay the full cost for all Optional insurance you elect. You must have

Basic insurance to elect any Optional insurance. Optional insurance provides coverage in

addition to what you have with Basic insurance.

There are three types of Optional insurance: Option A-Standard, Option B-Additional, and

Option C-Family.

Option A insures your life for $10,000.

Option B insures your life for 1, 2, 3, 4, or 5 multiples of your annual rate of basic pay rounded

up to the next even $1,000.

Option C insures the lives of your spouse and eligible dependent children. It comes in 1, 2, 3, 4,

or 5 multiples of coverage. Each multiple is equal to $5,000 for a spouse and $2,500 for each

eligible dependent child.

Accidental Death & Dismemberment Benefits

Accidental death and dismemberment (AD&D) coverage is an automatic part of Basic insurance

and Option A insurance (if elected) for employees, at no additional cost. There is no accidental

death and dismemberment coverage with Options B and C, and there is none for annuitants or

enrollees on workers’ compensation (“compensationers”).

Accidental death benefits are payable when you sustain injuries by accidental means and, within

one year afterwards, you die resulting directly from those injuries. Under Basic insurance,

accidental death benefits are equal to your BIA (without the Extra Benefit). Under Option A,

accidental death benefits are equal to your Option A coverage.

Accidental dismemberment benefits are payable when you sustain injuries by accidental means

and, within one year afterwards, you lose a limb or sight in one or both eyes resulting directly

from those injuries. Under Basic insurance, accidental dismemberment benefits are equal to one-

half of your BIA for the loss of one limb or sight in one eye. Under Option A, accidental

dismemberment benefits are equal to one-half of your Option A coverage for the loss of one limb

or sight in one eye.

Initial Election

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Unless your position is excluded from FEGLI coverage by law or regulation, you are

automatically enrolled in Basic insurance. If you do not want this coverage, you can either

waive it when you first become eligible for coverage, or cancel it at a later date. Optional

insurance is not automatic; you must specifically elect the types of Optional insurance you want

within 60 days of becoming eligible.

Effective Date

Basic insurance coverage is effective on the first day you are in a pay and duty status in an

eligible position. Option A and Option B insurance coverage is effective on the first day you are

in a pay and duty status on or after the day your employing office receives your election. If the

employee is not in a pay and duty status on the date the employing office receives the election,

the coverage becomes effective the next date that the employee is in pay and duty status. Option

C insurance coverage is effective on the day your employing office receives your election

without regard to pay and duty status.

Waiver/Cancellation of Insurance

When you first become eligible for FEGLI coverage, you must specifically waive Basic

insurance if you do not want it. If you do not want any Optional insurance, you do not have

to do anything. Any Optional insurance you do not elect is automatically waived.

You may cancel your Basic and/or Optional insurance coverage at any time, unless you have

assigned your insurance. When you cancel Basic insurance, you automatically cancel all

Optional insurance. Canceling Optional insurance has no effect on Basic insurance.

The cancellation is effective on the last day of the pay period in which you file it with your

employing office. As an employee your employing office maintains your FEGLI records. OPM

does not have records for employees. OPM’s Retirement Services maintains records for

annuitants and for compensationers who receive worker’s compensation for more than one year.

Cancellation of Waiver by Providing Medical Information

You may cancel your waiver and obtain Basic insurance and/or Options A and B if at least one

year has passed since the effective date of the waiver and you provide satisfactory medical

information at your own expense. You must have Basic insurance to elect Optional insurance.

If you want to cancel a waiver, you must be an eligible employee and you must complete a

Request for Insurance (SF 2822). Your agency will complete part of the form first. Then you

complete your section. Your physician or other medical professional will examine you and

complete the rest of the form.

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Your physician must send the completed SF 2822 to the Office of Federal Employees'

Group Life Insurance (OFEGLI), and OFEGLI must receive the form within 60 days of the

date of the medical examination. If OFEGLI approves coverage it will notify your human

resources office. Your human resources office will automatically enroll you in Basic insurance

(if you do not have Basic already). Basic coverage becomes effective on the first day you enter

on duty in pay status on or after OFEGLI's approval, provided you enter on duty in pay status

within 60 days after OFEGLI’s approval. If you do not enter on duty in pay status within 60

days after OFEGLI’s approval, the approval is revoked automatically.

You have 60 days from the approval date to elect Option A and/or Option B or increase your

Option B multiples (up to a total of five times your annual rate of basic pay rounded up to the

next even $1,000). You cannot elect Family Option-C based on this request.

Cancellation of Waiver Due to Life Event

You may cancel your waiver and elect any FEGLI coverage, including Basic insurance, Option

A, Option B, and Option C, based on a FEGLI qualifying life event. FEGLI qualifying life

events include:

 Marriage;

 Divorce;

 Death of a spouse;

 Acquiring an eligible child.

You must file the election with your employing office on a Life Insurance Election (SF 2817), or

its electronic equivalent, along with proof of the event, from 31 days before to 60 days after the

change in family status.

Open Seasons

There are no regularly scheduled open seasons to elect, increase, or change coverage under

FEGLI. Open seasons are held only when specifically scheduled by OPM. You do not have to

wait for an Open Season to reduce or cancel coverage. You can do so at any time (unless you

assigned your coverage).

Nonpay Status

Your FEGLI coverage continues during your first 12 months in nonpay status. No premium

payments are required, unless you are receiving benefits from the Office of Workers’

Compensation Programs (OWCP). Your life insurance coverage terminates at the end of this 12-

month period, with a 31-day extension of coverage and right to convert to an individual policy.

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Employees who separate from service to enter the military are considered to be in a nonpay

status for FEGLI purposes. As long as you have reemployment rights under the Uniformed

Services Employment and Reemployment Rights Act of 1994 (USERRA), you can keep your

FEGLI coverage for up to 24 months in nonpay status, or until 90 days after your military service

ends, whichever is earlier. Coverage is free for the first 12 months; however, employees must

pay both the employee and agency contributions of premiums for their Basic coverage and

continue to pay the entire cost (there is no agency share) for any Optional insurance they may

have for the second 12 months of coverage.

Effect of Separation from Service on Waiver

When you return to work after a break in service of less than 180 days, you automatically get

back whatever life insurance coverage you had before leaving Government service. Any

previous waiver of coverage remains in effect.

When you return to work after a break in service of 180 days or more, you will automatically get

Basic insurance (even if you previously waived it) and the same optional insurance (if

applicable) that you had in your prior position. You can elect any type of optional coverage or

increase the multiples of optional coverage within 60 days of returning to service. If you do not

submit an election of optional insurance, you will get back whatever optional insurance you had

before you separated, and you will be considered to have waived any other optional insurance.

Termination of Insurance

Your life insurance stops when:

 You cancel it;

 You separate from service;

 You complete 12 months in nonpay status;

 You move to a position that is excluded from FEGLI coverage;

 You retire and are not eligible to continue coverage into retirement;

 Your annuity terminates;

 Your compensation stops (or when OWCP finds that you are able to return to duty); or

 You die.

31-Day Extension of Coverage and Conversion of Insurance

When your life insurance terminates, except by your waiver or cancellation, your coverage

automatically continues without cost for another 31 days. You are entitled to convert to an

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individual policy. You may convert all or any part of your Basic and Optional coverage. No

medical examination is required, although you may be asked a few questions about your health

to see if you qualify for a lower premium. You do not have to answer these questions, but if you

do not, you may be paying a higher premium than necessary.

You (or your assignee if you assigned your life insurance) must request conversion information

within 31 days of the date on the conversion notice you receive from your employing agency, or

within 60 days after the terminating event, whichever is sooner. Regardless of the date you

purchase the conversion policy, conversion is effective and premiums begin at the end of the 31-

day extension of coverage. For information about assignment of life insurance, please refer to

“Assignment.”

Exception: If you are physically unable to convert to an individual policy, a person having a

power of attorney for you may convert on your behalf. If you have assigned your insurance, the

assignee(s), rather than you, are entitled to convert Basic, Option A and Option B coverage.

Your family members may convert your Option C coverage, if you were enrolled in Option C.

Example

Glen separates from his agency October 23. Glen later contacts his agency to tell them he needs a

conversion notice. His agency issues the conversion notice to him December 15. His conversion

request must be received by OFEGLI by December 22 (60 days after October 23) since this is the

last date he can make this request.

Eligibility for Life Insurance as an Annuitant or Compensationer

When you retire, you are eligible to continue FEGLI if you meet all of the following

requirements:

 You are entitled to retire on an immediate annuity under a retirement system for civilian

employees;

 You have been insured for the 5 years of service immediately before the starting date of

your annuity, or for the full period(s) of service during which you were eligible to be

insured if less than 5 years;

 You are enrolled in FEGLI on the date of retirement; and

 You have not converted to an individual policy.

The requirements for continuing life insurance as a compensationer are similar.

Compensationers must meet the 5-year/all-opportunity requirement as of the date they started

receiving compensation.

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Post-65 Reductions in the Amount of Insurance

If you are eligible to continue your Basic insurance as an annuitant or compensationer, you must

choose the amount of Basic insurance you want to continue after age 65 (or retirement, if you are

already age 65 or older when you retire). The choices are 75 Percent Reduction, 50 Percent

Reduction, and No Reduction. NOTE: Your coverage does NOT reduce when you reach age 65

if you are still an employee at that time.

If you choose 75 Percent Reduction, your Basic insurance reduces by 2 percent of the pre-

retirement amount each month beginning at age 65 until 25 percent of the pre-retirement amount

remains. If you choose 50 Percent Reduction, your Basic insurance reduces by 1 percent of the

pre-retirement amount each month beginning at age 65 until 50 percent of the pre-retirement

amount remains. If you choose No Reduction, your Basic insurance will not reduce and 100

percent of the pre-retirement amount is payable as a death benefit.

If you choose 75 Percent Reduction, the coverage will be free after you are retired and reach age

65.

If you choose 50 Percent Reduction or No Reduction, you will pay an extra premium for this

coverage after you are retired and reach age 65.

When you are retired and reach age 65, Option A coverage automatically begins reducing by 2

percent of the pre-retirement amount each month until 25 percent of the pre-retirement amount

remains. Option A is free once it starts to reduce. There is no reduction election to make at time

of retirement for Option A.

At the time you retire or become insured as a compensationer (for compensationers, typically

after 12 months in nonpay status), you must choose how many of your Option B and/or C

multiples you want to continue. You must also choose whether to have some or all of those

multiples reduce (“Full Reduction”) or not reduce (“No Reduction”) after age 65 (or retirement,

if later). You may choose Full Reduction for some multiples and No Reduction for other

multiples of your Option B and/or C coverage. In addition, shortly before reaching age 65, you

will receive a notice providing you a second opportunity to make this election. You can elect to

keep your original reduction election(s) made at retirement, or change them by returning the

notice to OPM at that time.

If you choose Full Reduction, after you are retired and upon reaching age 65, each multiple starts

reducing by 2 Percent of the pre-retirement amount each month until the amount has been

reduced by 100 Percent and the final value = $0. Until the reduction starts, you pay the same

premiums as active employees, appropriate to your age. When the reduction starts at age 65,

withholdings stop and Options B and/or C become free.

If you choose No Reduction, your Options B and/or C coverage will not reduce at all. After age

65, you will continue to pay the same premiums as active employees, appropriate to your age.

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Order of Precedence

When you die, OFEGLI will pay benefits in a particular order, as set by law:

 If you assigned ownership of your life insurance by filing an Assignment, Federal

Employees’ Group Life Insurance (RI 76-10), OFEGLI will pay benefits:

First, to the beneficiary(ies) designated by your assignee(s), if any;

Second, if there is no such beneficiary(ies), to your assignee(s).

 If you did not assign ownership and there is a valid court order on file, OFEGLI will pay

benefits in accordance with that court order.

 If you did not assign ownership and there is no valid court order on file, OFEGLI will

pay benefits:

► First, to the beneficiary(ies) you validly designated;

► Second, if no such beneficiary(ies), to your widow or widower;

► Third, if none of the above, to your child or children in equal shares, and the

descendants of any deceased children;

► Fourth, if none of the above, to your parents in equal shares, or the entire amount to

the surviving parent;

► Fifth, if none of the above, to the court-appointed executor or administrator of your

estate;

► Sixth, if none of the above, to your other next of kin entitled under the laws of the

State where you lived.

Option C benefits are paid to you, the insured, upon the death of your spouse or eligible

child(ren).

FEGLI forms are available online at http://www.opm.gov/healthcare-insurance/life-

insurance/reference-materials/#url=Publications-and-Forms

Designation of Beneficiary

You must designate a beneficiary if:

 You want benefits to be paid to a person, firm, organization, or other legal entity not

listed in the order of precedence;

 You want benefits to be paid in a different order than the order of precedence; or

 You want benefits to be paid to a trust you have established for your minor children; or

Completing a Designation of Beneficiary (SF 2823) is the preferred way for you to make a

designation of your FEGLI benefits. Your signature must be witnessed (signed) by two persons

who are not named as beneficiaries. Your employing office (or OPM, if you are an annuitant or

compensationer) must receive the form before you die. IMPORTANT: If you have a designation

on file, keep it current in the event of family status changes. Make sure it accurately reflects

your intentions.

U.S. Office Of Personnel Management

FEGLI forms are available online at http://www.opm.gov/healthcare-insurance/life-

insurance/reference-materials/#url=Publications-and-Forms

Court Orders

FEGLI benefits must be paid in accordance with the terms of a valid court order, regardless of

whether you actually complete a Designation of Beneficiary (SF 2823) form. The valid court

order supersedes any of your prior designations (and the rest of the order of precedence), if the

appropriate office receives a certified copy of the court order before your death. For employees,

your employing agency is the appropriate office. For retirees, the appropriate office is OPM.

FEGLI forms are available online at http://www.opm.gov/healthcare-insurance/life-

insurance/reference-materials/#url=Publications-and-Forms

Assignment

Assignment is the transfer of ownership of life insurance to another individual, corporation, or

trustee. You are still the insured person, but you no longer own the insurance. Assignment is

voluntary and irrevocable.

When you make an assignment, you assign Basic insurance, and Option A and Option B

insurance if you have them. You cannot assign dismemberment insurance, the Extra Benefit, or

Option C. You cannot make a partial assignment or assign only one type of insurance.

After making the assignment, you continue to pay the premiums from your salary or annuity.

The assignee or another third party cannot make premiums payments on your behalf. If the

assignee agrees to pay the premiums, you must make separate arrangements. This is a private

business arrangement between you the insured and the assignee.

After making the assignment, the assignee has the right to:

 Cancel or reduce insurance;

 Change your Basic post-65 reduction election to 75 Percent Reduction;

 Change your Option B post-65 reduction election from No Reduction to Full Reduction.

 Designate and change beneficiaries;

 Convert to a private policy when FEGLI terminates (except if your annuity or

compensation terminates); and

 Reassign the insurance.

You still have the right to:

 Elect a post-65 reduction for Basic, Option B and Option C at the time of retirement.

 Elect more insurance if you are an active employee(all of the new insurance, except

Option C, will come under the existing assignment); and

 Continue Option C coverage, if you have it.

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An assignment automatically cancels prior designations of beneficiary. Once your assignment

becomes effective, only your assignee has the right to designate a beneficiary for your life

insurance proceeds. When you die, benefits are paid to your assignee's beneficiary. If your

assignee does not designate a beneficiary, benefits are paid to your assignee. An assignment

supersedes the order of precedence and a valid court order.

Living Benefits

Living benefits are life insurance benefits paid to you while you are still living, rather than paid

to a beneficiary or survivor when you die. You can elect a living benefit if you are diagnosed as

terminally ill with a life expectancy of nine months or less, and you have not assigned your

insurance. If you are physically or mentally incapable of electing living benefits, an individual

having power of attorney can apply for living benefits on your behalf.

Only Basic insurance is available for a living benefit. Optional insurance cannot be paid as a

living benefit. If you are an employee, you can elect either a full living benefit (all of your Basic

insurance) or a partial living benefit (expressed as a multiple of $1,000). Annuitants and

compensationers can elect only a full living benefit.

Filing a Claim

If you are employed at the time of your death, your claimant(s) should notify your employing

office of your death. Your employing office will provide each claimant with a Claim for Death

Benefits (FE-6). Each claimant must submit a separate claim form to your employing office or

directly to OFEGLI if instructed to do so by the employing office.

If you are retired or insured as a compensationer at the time of your death, your claimant(s)

should notify OPM of your death at 1-88-US-OPM-RET (1-888-767-6738) outside the

Washington DC metropolitan area or 202-606-0500 within the Washington, DC area. OPM will

provide each claimant with a Claim for Death Benefits (FE-6). Each claimant must submit a

separate claim form to OFEGLI at their mail facility: P.O. Box 6080, Scranton PA 18505-6080.

OFEGLI can only pay death benefits after it has received:

 Claim for Death Benefits (FE-6) from someone entitled to the benefits;

 Satisfactory proof of death, including a certified copy of the death certificate;

 Agency Certification of Insurance Status (SF 2821) by the agency for employees or OPM

for retirees; and

 Other supporting documentation as appropriate, including court orders, assignments,

powers of attorney, birth certificates, guardianship papers, and election forms verifying

FEGLI coverage.

U.S. Office Of Personnel Management

FEGLI forms are available online at http://www.opm.gov/healthcare-insurance/life-

insurance/reference-materials/#url=Publications-and-Forms

OPM RESPONSIBILITIES

The Office of Personnel Management has the overall responsibility for administration of the

FEGLI Program. This includes:

 Receiving all payments from agencies to the Employees' Life Insurance Fund (the Fund);

 Depositing these payments in the Treasury of the United States;

 Authorizing payment of life insurance premiums from the Fund to OFEGLI;

 Determining whether retiring employees and employees receiving workers' compensation

benefits are eligible to continue life insurance coverage. (For retirement systems other

than the Civil Service Retirement System [CSRS] and the Federal Employees Retirement

System [FERS], OPM bases its determination on certifications by the administrative

office of the system involved);

 Publishing regulations, forms, and documents (such as the FEGLI Program Booklet and

FEGLI Handbook);

 Providing guidance to employing offices; and

 Administering the life insurance contract.

OFEGLI RESPONSIBILITIES

OFEGLI’s responsibilities include:

 Processing and paying claims, including determining who is entitled to the benefits;

 Determining whether an insured individual is eligible for a living benefit;

 Determining whether accidental death and dismemberment benefits are payable;

 Determining an employee’s eligibility to cancel a waiver of insurance based on

satisfactory medical information; and

 Processing requests for conversion.

AGENCY RESPONSIBILITIES

 Headquarters Insurance Officer;

 Field Installation Responsibilities;

 Counseling;

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 Other Agency Responsibilities; and

 Life Insurance Questions.

Headquarters Insurance Officer

The head of each agency must designate a person to serve as the headquarters Insurance Officer

(Insurance Officer) for the agency. The agency must notify OPM of the designee's name or any

change in the designation. The Insurance Officer is OPM's contact for agency-wide insurance

matters.

The agency should email their notification to [email protected].

Field Installation Responsibilities

The head of each agency is responsible for appointing staff at the employing office level who

will be responsible for certifying and processing claims, notices, or other information.

An agency may also delegate responsibility for counseling and advising employees and

maintaining records to decentralized local operating offices or field installations.

Counseling

Agencies must make insurance information and counseling available to employees. Agencies

must become especially familiar with the participation requirements for continuing Basic and

Optional insurance at the time of retirement (as stated in this Handbook) and make this

information available to employees, especially those considering retirement. OPM encourages

agencies to develop counseling programs which meet the needs of their employees. OPM will

provide the necessary technical assistance on insurance benefits to headquarters Insurance

Officers upon request. We also strongly encourage agencies to make their human resources

office staffs available to attend continuing education training conferences hosted by OPM.

Other Agency Responsibilities

Agencies are also responsible for:

 Determining employees’ eligibility for coverage under OPM's regulations;

 Processing life insurance elections and cancellations;

 Verifying prior insurance elections for employees with previous Federal service;

 Advising employees of the requirements for canceling previously-filed insurance

waivers;

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 Certifying coverage at time of separation, retirement, end of 12 months nonpay status,

and death;

 Informing employees of the right to convert insurance at the time group coverage ends,

other than by voluntary cancellation;

 Withholding premiums from pay;

 Sending and reporting withholdings and contributions to OPM;

 Maintaining insurance records;

 Supplying insurance forms, booklets, and other guidance as appropriate to employees and

survivors;

 Obtaining continuing education on the FEGLI Program;

Providing information and counseling to employees;

 Giving assistance to persons filing claims;

 Providing prepayment verification based on the death of an employee to OFEGLI when

requested;

 Maintaining designation of beneficiary forms, assignments, and court orders; and

 Performing reconsiderations of initial decisions regarding life insurance upon an

employee’s written request.

Life Insurance Questions

Agency personnel offices and field installations must direct their questions to their agency

headquarters Insurance Officer.

Agency headquarters Insurance Officers can direct their questions to the Individual Benefits and

Life Office, Federal Employee Insurance Operations, Healthcare and Insurance, at OPM. The

email address is [email protected].

INSURED INDIVIDUAL RESPONSIBILITIES

 Responsibilities

 Life Insurance Questions

Responsibilities

Your responsibilities include:

 Familiarizing yourself with the aspects of the FEGLI Program that affect you, such as

your level of coverage, and knowing when you can make changes to your coverage;

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 Filing a designation of beneficiary form if you decide the order of precedence is not

satisfactory, filing a new form when your current designation on file is not satisfactory or

when your beneficiary’s address changes, and making sure your designation accurately

reflects your intentions;

 Retaining copies of your FEGLI enrollment and beneficiary records;

 Knowing where your agency human resources or personnel office is located, and whom

to contact if you have a question about your FEGLI coverage; and

 Knowing when your coverage terminates, and requesting conversion on a timely basis (if

you wish to convert).

Life Insurance Questions

Current employees must direct questions to their employing office. The employing office

maintains the FEGLI records for their employees. Neither OPM nor OFEGLI has access to the

employee’s records.

Annuitants and compensationers should direct questions to OPM's Retirement Information

Office at 1-88-US-OPM-RET (1-888-767-6738) outside the Washington, D.C., metropolitan area

or 202-606-0500 within the Washington area. The email address is [email protected]. Annuitants

should send written inquiries to the Retirement Operations Center, P.O. Box 45, Boyers, PA

16017-0045. Please include your retirement claim number (CSA or CSF) number on any

correspondence.

CORRECTION OF ERRORS

 Employing Office

 OPM

 Premiums

 Erroneous Suspensions and Firings

Employing Office

Your employing office can correct administrative errors regarding coverage or changes in

coverage at any time. If the correction involves the election of new coverage, the effective date

is the same as if the error had not happened.

OPM

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In situations in which your agency does not have the authority to correct an error, OPM may

order correction of an administrative error after reviewing evidence that it would be against

equity (fairness) and good conscience not to do so. You or your agency should send the request

for review to OPM, Individual Benefits and Life, RM 3400, 1900 E Street, NW, Washington DC

20415.

Premiums

If the correction of an error gives you retroactive coverage, OPM must receive the premiums for

the retroactive coverage for all periods during which you were in pay status.

Erroneous Suspensions and Firings

If there is an official finding that you were suspended or fired erroneously, no withholdings are

made from your back pay award for any Basic or Optional insurance. Exceptions:

 If you die or have an accidental dismemberment between your removal and the finding

that your agency’s action was erroneous, premiums will be withheld from the back pay

award; and

 If you have Option C, and a covered family member dies between your removal and the

finding that your agency’s action was erroneous, Option C premiums will be withheld

from the back pay award.

If you are awarded a settlement with no determination that your firing or suspension was

erroneous, your employing office will ask OPM to determine whether your insurance will be

reinstated and whether withholdings are required. Keep in mind a settlement cannot provide you

FEGLI coverage, terminated or otherwise not in effect, contrary to law.

INCONTESTABILITY

 What Is Incontestability?

 Getting Erroneous Coverage

 If You Don’t Want the Coverage

 Documenting Incontestability

 If Incontestability Doesn’t Apply

What Is Incontestability?

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Incontestability is a provision of law that allows erroneous coverage to remain in effect under

certain conditions. Those conditions are:

 The coverage must have been in effect for at least two years between the time the error

was made and the time the error is discovered; and

 You must have paid the applicable premiums for the erroneous coverage while it was in

effect.

All conditions must be met for incontestability to apply.

Getting Erroneous Coverage

There are four ways you can get erroneous coverage:

 Your agency may allow you to elect coverage when you are not entitled to do so;

 Your agency may code your SF 50 (Notification of Personnel Action) incorrectly, giving

you more coverage than you elected;

 Your payroll office may collect premiums for a coverage that you did not elect on the

election form;

 OPM may allow you to continue your coverage beginning when you became an annuitant

or compensationer when you are not eligible to do so.

Note: Erroneous coverage always involves getting more coverage than you are entitled to or

more coverage than you elected. If your employing office’s error results in premiums being

withheld for less coverage than you elected, that is not erroneous coverage; that is, instead, an

overpayment of salary, annuity, or compensation.

If You Do Not Want the Coverage When Incontestability Applies

If you do not want the erroneous coverage and incontestability applies, you may cancel it.

However, the cancellation is prospective. There is no refund of premiums. Exception: If you

got Option C-Family erroneously, and you did not have any eligible family members, then this

coverage may be cancelled retroactively and you would get a refund of your erroneous Option C

premiums retroactive to when you ceased having any eligible family members.

Example

Andy is single and has no children. As a new employee he waived all FEGLI. Three years later

he transferred to another agency with no break in service, so his waiver was still in effect.

Andy’s new agency erroneously coded his SF 50 “E1” (Basic and 1 multiple of Option C).

These premiums were withheld from Andy’s pay. Four years later Andy noticed the FEGLI

withholdings. He brought the error to his agency’s attention. Since the erroneous coverage had

been in effect for more than 2 years and Andy paid the premiums during that time, the Basic

coverage is valid because of incontestability.

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Andy says he does not want the coverage and he wants his money back. Since the coverage is

now valid, Andy must complete a “Life Insurance Election” (SF 2817) to cancel the unwanted

coverage. The cancellation of Basic insurance is prospective and effective the end of the pay

period in which he submits the request. Andy cannot get a retroactive refund of his Basic

insurance premiums. Since Andy had no eligible family members, however, the cancellation of

Option C will be retroactive and the agency will refund all the Option C premiums Andy paid.

Documenting Incontestability

Once your employing office or retirement system determines that your coverage should be

allowed to stand, it must prepare a note for the file explaining the details of the error, the date it

occurred, the date it was discovered, and the fact that your coverage is now valid due to

incontestability.

Coverage allowed to stand due to incontestability becomes valid. It must still meet the 5-yr/all-

opportunity rule for it to be continued into retirement. If you were covered under the FEGLI

Program for the 5 years immediately prior to retirement (or for all opportunities to be covered),

even if the coverage was in error but was allowed to stand because of incontestability, you are

entitled to carry the coverage into retirement.

Upon your retirement, your employing office must forward the note explaining the details of the

validated coverage, along with any Life Insurance Elections (SF 2817s), to the retirement

system. If there is no SF 2817, the employing office must provide the SF 50 “Notification of

Personnel Action” documenting the coverage to the retirement system. The employing office

should also make a note in the “Remarks” section of the Agency Certification of Insurance Status

(SF 2821) explaining that incontestability was used to ratify erroneous coverage.

If an employee is erroneously allowed to continue insurance coverage into retirement or while on

compensation, the coverage will remain in effect:

1. If at least two years pass before the error is discovered; and

2. If the annuitant or compensationer has paid the applicable premiums during that

time.

FEGLI coverage that is acquired erroneously during the initial period of

retirement/compensation processing and meets these criteria is valid if the error is discovered on

or after October 30, 1998.

If an individual becomes erroneously enrolled in life insurance on or after the date he retires or

begins receiving compensation, the coverage cannot remain in effect even if two years pass and

the individual paid applicable premiums. The coverage is voided retroactively to the date the

error occurred, and a refund in withholdings is necessary.

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If Incontestability Does Not Apply

If the error is discovered before two years, incontestability does not apply and the erroneous

coverage is not valid. The employing office or retirement system must void the coverage and

refund the premiums.

Example

Alicia elected Basic insurance when she became employed on 11/1/2010. One year later, she got

married and added two multiples of Option B using a life event election. However, her

employing office processed an election of five multiples. One year later Alicia died, and the

agency discovered the error when it was preparing the Agency Certification of Insurance Status

(SF 2821) to certify the death to OFEGLI for payment of the life insurance. Since the error was

discovered before two years had passed, the erroneous coverage is not valid. The agency must

certify the correct amount of Alicia’s coverage – Basic and two multiples of Option B. The

premiums for the extra three multiples of Option B must be refunded.

INITIAL DECISION AND RECONSIDERATION

 Initial Decision

 Reconsideration Right

 How to Request Reconsideration

 Time Limit

 Who Does the Reconsideration?

 Final Decision

 Effective Date

Initial Decision

Your employing office has the initial responsibility for determining whether you are eligible to

elect life insurance or change your coverage. Your employing office also has the responsibility

for determining whether you may designate a beneficiary or assign your insurance.

This determination is an initial decision when your employing office gives it to you in writing

and informs you of the right to an independent level of review (reconsideration) by the

appropriate agency office.

Exception: OFEGLI determines your eligibility to cancel a waiver based on satisfactory medical

information and your eligibility for a living benefit. There is no reconsideration right for these

decisions.

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Note: Your employing office cannot make decisions about payment of claims (OFEGLI makes

these decisions).

Reconsideration Right

If you disagree with your agency’s initial decision, you have the right to request your employing

office reconsider its initial decision. The request for reconsideration must be in writing.

The reconsideration review determines if your employing office acted properly and in

accordance with the law and regulations in making its initial decision. Initial decisions that

comply with law and regulations cannot be overturned by reconsideration.

Example 1

Bruce, who had waived Optional life insurance coverage, separated from service and was

reemployed two months later. Upon his reemployment, he attempted to elect Option B. His

employing office denied the election and gave him this initial decision in writing. Bruce has the

right to request reconsideration of his agency’s decision not to allow him to elect Option B. (In

this case, the initial decision cannot be overturned by reconsideration because by regulation

previous waivers remain in effect when an employee returns to Federal service with a break in

service of less than 180 days.)

Example 2

Beth, who had Basic insurance only, got married 6/25/12; her new husband has no children.

Two weeks later she completed an SF 2817 “Life Insurance Election” adding five multiples of

Option B as a life event election. Her agency, however, told Beth that she could only elect one

multiple of Option B. Beth requested this decision in writing and the agency complied. Beth has

the right to request reconsideration of her agency’s decision to limit her election to one multiple.

(In this case, the initial decision will not be upheld, because the regulations do not limit the

number of Option B multiples that may be elected with a life event to the number of eligible

family members gained with the event. The initial decision will be overturned upon

reconsideration.)

How to Request Reconsideration

If you are an employee and you wish to request a reconsideration of an initial decision, you must

make your request to your employing agency in writing. The request must include:

 Your full name and address;

 Your date of birth; and

 The reason(s) for the request.

 Note: If you are retired or receiving workers’ compensation, you must make your request

to OPM’s Retirement Services, P.O. Box 45, Boyers, PA 16017. You must include your

retirement claim number or compensation claim number with your request.

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Time Limit

If you want the initial decision to be reconsidered, you must request reconsideration within 31

calendar days (60 days if overseas) from the date of the initial decision.

This time limit can be extended if you show that you were not notified of the time limit and were

not otherwise aware of it, or that you were unable for reasons beyond your control to make the

request within the time limit.

Who Does the Reconsideration?

Agencies are responsible for performing reconsiderations for employees. OPM is responsible for

performing reconsiderations for annuitants and for compensationers who have separated from

service or completed 12 months in nonpay status. A reconsideration must take place at or above

the level at which the initial decision was made.

Final Decision

After reconsideration, your employing office or OPM’s Retirement Operations must issue a final

decision. This decision must be in writing and must fully state the findings. There is no further

administrative appeal process after the reconsideration. If you disagree with the final decision

issued by your employing office, you may seek judicial review as described in section 8715, title

5, United States Code.

Effective Date

If your employing office decides that you should have been allowed to make an election or

change coverage, it will accept your Life Insurance Election (SF 2817) making the change. The

new coverage is effective according to the dates set out in the FEGLI regulations (5 CFR

Part 870) and discussed in this Handbook. If this results in retroactive coverage, you are

responsible for the retroactive premiums for all periods during which you were in pay status.

HISTORICAL INFORMATION

 Extension of Benefits to Married Federal Employees, Annuitants, and Their

Families

 Legislative History

 Incontestability

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Extension of Benefits to Married Federal Employees, Annuitants, and

Their Families

On June 26, 2013, the United States Supreme Court ruled that Section 3 of the Defense of

Marriage Act (DOMA) is unconstitutional, thus allowing Executive Departments and Agencies

to recognize legally married same-sex spouses of Federal employees and annuitants for Federal

benefits. Effective June 26, 2013, a same-sex spouse of a valid marriage is recognized as a

family member for benefits under the FEGLI Program. Legal same-sex marriages entered into

following this decision will be treated in the same manner as opposite sex marriages, regardless

of an employee’s or annuitant’s state of residency. Consistent with OPM’s long-standing policy

of recognizing the legal foreign marriages of opposite-sex couples for purposes of FEGLI, OPM

will also recognize legal same-sex marriages granted in countries that authorize such marriages,

regardless of an employee’s or annuitant’s state of residency, for purposes of these programs.

Legislative History

The legislative changes are available in the “Table of Legislation Affecting FEGLI.”

Incontestability

Prior to October 28, 1998, incontestability was not statutory. It was a contractual provision and

did not apply if the erroneous coverage was in violation of a statutory provision. Effective

October 28, 1998, incontestability became a statutory provision and applies to all erroneous

coverage.

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TYPES AND AMOUNTS OF INSURANCE

 Kind of Insurance

 Types of Insurance

 Amount of Basic Insurance

 Annual Rates of Pay

 Amount of Optional Insurance

 Concurrent Employment

 Changes in Amount of Insurance

 Accidental Death and Dismemberment Benefits

 Historical Information

KIND OF INSURANCE

Federal Employees' Group Life Insurance (FEGLI) is group term life insurance coverage. It

does not build up a cash or paid-up value. You cannot obtain a loan by borrowing from this

insurance.

FEGLI provides coverage wherever you are, not just when you are at work. FEGLI benefits are

payable regardless of cause or location of death.

TYPES OF INSURANCE

There are two types of life insurance under the FEGLI Program: Basic and Optional.

There are three types of Optional insurance: Option A-Standard, Option B-Additional, and

Option C-Family.

AMOUNT OF BASIC INSURANCE

 Basic Insurance Amount (BIA)

 Minimum and Maximum BIA

 Extra Benefit/Age Multiplication Factor

 Post-Election BIA

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Basic Insurance Amount (BIA)

Basic insurance covers your life for an amount known as your Basic Insurance Amount (BIA),

which is based on your actual current pay.

To calculate your BIA:

1. Take your annual rate of basic pay;

2. Round it up to the next even $1,000 (if it is not already an even thousand dollar amount);

and

3. Add $2,000.

Example

Carlos has an annual salary of $48,586. Round to $49,000. Then add $2,000. His Basic

Insurance Amount is $51,000.

See the Table of Basic Insurance Amounts.

Your BIA automatically changes whenever your annual pay is increased or decreased by an

amount that will raise or lower pay to a different $1,000 bracket.

If you are eligible to continue Basic life insurance coverage as an annuitant or compensationer,

your BIA is the amount in effect at the time your insurance as an employee stops. Your

insurance as an employee stops either at your separation from service or your completion of 12

months in nonpay status, whichever is earlier.

Minimum and Maximum BIA

The minimum amount of Basic insurance is $10,000. Any employee whose annual pay is less

than $8,000 has $10,000 in Basic insurance, even if the employee is part-time. Exception: If

you elected a partial living benefit, it is possible that your remaining BIA may be less than

$10,000.

There is no maximum BIA. However, if your salary is “capped” by law, the amount of your

Basic insurance is based on the capped amount; i.e., the amount you are actually being paid. It is

not based on the amount your pay would be without the cap.

Extra Benefit/Age Multiplication Factor

If you are under age 45 and you are covered under Basic insurance, you automatically have extra

coverage without paying any additional premium. This Extra Benefit increases the amount of

Basic insurance payable at the time of your death, if you die before age 45.

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To determine the amount of the Extra Benefit, multiply your BIA by the appropriate age

multiplication factor as follows:

Your Age

Death

Age

Multiplication

Factor

35 or under

2.0

1.9

1.8

1.7

1.6

1.5

1.4

1.3

1.2

1.1

45 and over

1.0

Example

Clara dies at age 40, with an annual salary of $57,126. Her BIA is $60,000. The age

multiplication factor is 1.5. The amount of Basic life insurance payable is $90,000 ($60,000 x

1.5).

Living Benefit Post-Election BIA

The post-election BIA is the amount of Basic insurance left after you elect a living benefit.

If you elect a full living benefit, your post-election BIA is $0.

If you elect a partial living benefit, you still have some Basic insurance left. OFEGLI provides

the post-election BIA on the FE-8C Explanation of Benefits that is sent to your employing

agency. OFEGLI determines this amount by taking your BIA on the date OFEGLI receives your

completed living benefit application and reducing it by a percentage. This percentage represents

the amount of your partial living benefit payment, compared to the amount you could have

received if you had elected a full living benefit. The amount that is left is rounded up or down to

the nearest multiple of $1,000. (If the amount is midway between multiples, it is rounded up to

the next higher multiple.)

Your post-election BIA cannot change, even if your salary increases or decreases.

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If you elect a partial living benefit and are under age 45 when you die, OFEGLI will multiply

your post-election BIA by the Extra Benefit age factor that was in effect on the date 9 months

after the date OFEGLI received your completed living benefit application.

ANNUAL RATES OF BASIC PAY

 Determination

 Included

 Not Included

 Hourly, Daily, and Similar Rates

 Part-Time Rates

 Piecework Rates

 Multiple Rates – Regular Schedule

 Multiple Rates – No Regular Schedule

 Part-Time Flexible Schedule

 Intermittent Employment Rates

 Certifying the Amount of Insurance When There Is No Regularly Scheduled Tour

of Duty

Determination

Your annual pay is your annual rate of basic pay as fixed by law or regulation. If your pay is

“capped” by law, your annual pay for FEGLI purposes is the capped amount; i.e., the amount

you are actually being paid.

Example:

If an individual’s current salary is $125,078 and the individual receives authorized premium pay

of 25 Percent or $31,269.50, the total would be $156,347.50. However, if the salary is capped at

$143,471, then FEGLI is based on the capped amount of $143,471. The FEGLI BIA would then

be $146,000 (the capped amount rounded to the next higher thousand, plus $2,000).

Included

The following are included in annual pay:

 Interim geographic adjustments and locality-based comparability payments (i.e. locality

pay), as provided by Pub. L. 101-509;

 Night differential pay for wage employees;

 Environmental differential pay for employees exposed to danger or physical hardship;

 Tropical differential pay for citizen employees in Panama;

 Special pay adjustments for law enforcement officers;

 Premium pay for standby duty under 5 U.S.C. 5545(c)(1)*;

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 Premium pay for administratively uncontrollable overtime under 5 U.S.C. 5545(c)(2) for

law enforcement officers, as defined under 5 U.S.C. 8331(20) and 5 CFR 831.902 and

842.802*;

 Availability pay for criminal investigators under 5 U.S.C. 5545a*;

 Market pay for physicians and dentists of the Department of Veterans Affairs under 38

U.S.C. 7431;

 Premium pay for overtime inspectional service for customs officers, as provided by Pub.

L. 103-66; and

 Straight-time pay for regular overtime hours for firefighters, as provided in 5 U.S.C.

5545b and 5 CFR part 550, subpart M.

*If your annual pay includes this, your annual pay is determined by multiplying your annual rate

of basic pay by the applicable percentage factor.

If you are legally serving in more than one position at the same time, and at least one of those

positions entitles you to life insurance coverage, the annual pay for life insurance purposes is the sum

of the annual rate of basic pay fixed by law or regulation for each position. This does not apply to an

employee of the Postal Service who works a part-time flexible schedule, or to a temporary,

intermittent decennial census worker.

Not Included

The following are not included in annual pay:

 Foreign post differential for wage employees with the exception of wage employees in

Guam who were recruited from outside Guam and are paid a recruitment and retention

incentive;

 Night differential pay and foreign or nonforeign post differential pay of General Schedule

employees;

 Bonuses, allowances, overtime, holiday, and military pay not listed above as included;

 Premium pay authorized for certain air traffic controllers under Pub. L. 97-276;

 Lump-sum payments for accrued leave;

 Supervisory differentials;

 Retention allowances; and

 Physicians' comparability allowances.

Hourly, Daily, and Similar Rates

To convert a pay rate of other than annual salary to an annual rate, multiply the pay rate by the

number of the pay units in a 52-week work year.

Example

Dave is paid $18.89 an hour and works 2,087 hours per year. His annual pay is $39,423

($18.89 x 2,087).

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If part of your basic 40-hour week is paid at an overtime rate, your basic pay is determined at

your base rate for 40 hours. The overtime rate is not counted toward your basic pay for life

insurance purposes.

Example

Dottie is paid $19.02 an hour, works 2,087 hours per year, and is assigned a workweek of four

10-hour days. She is paid $28.53 per hour for two hours of each 10-hour day. Since her

overtime hours are part of the 40-hour week, they are counted at the base rate, not the overtime

rate. Her annual pay is $39,695 ($19.02 x 2,087).

Part-Time Rates

If you are a part-time employee, your annual pay is your basic pay applied to your tour of duty

on record (as shown on your most recent Standard Form 50 Notification of Personnel Action or

equivalent document) in a 52-week work year.

Example

The annual salary for Ernest’s position is $48,638, and Ernest works 24 hours per week. His

annual pay for FEGLI purposes is $29,183. ($48,638 ÷ 52 weeks ÷ 40 hours x 24 hours x 52

weeks).

Piecework Rates

If you are an employee on piecework rates, your annual pay is your total basic earnings for the

previous calendar year, not counting premium pay for overtime or holidays.

Whenever the piecework rate changes, your annual pay is adjusted by applying the percentage of

increase or decrease in rate.

If you had leave without pay during the year, your annual pay is determined by dividing the

year's earnings (or adjusted earnings) by the number of days for which you were paid (days

worked plus leave with pay); this gives the average daily rate. This average daily rate is

multiplied by 260.

Example

Erica’s 2011 earnings were $37,489 and she was paid for 190 days. Her average daily rate is

$197.31 ($37,489 ÷ 190). Her 2012 annual pay for FEGLI purposes is $51,301 ($197.31 x 260).

If you are a new employee, your first year's annual pay for life insurance purposes is the average

earned or adjusted annual basic pay during the previous calendar year for piecework employees

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doing similar work in your group, subject to any further adjustment of the average during the

first year.

Multiple Rates – Regular Schedule

If you are regularly scheduled to work at different pay rates (such as day and night rates), your

annual pay is the weighted average of the rates at which you are paid, projected to an annual

basis. A regular schedule can exist even if your schedule varies within a year or even within a

pay period.

Example

Franklin is paid $14.92 per hour on a day shift and $18.37 per hour on a night shift and is

regularly scheduled to work eight months on day shift and four months on night shift. Multiply

$14.92 by 1,391 hours (2,087 hours ÷ 12 months x 8 months) and $18.37 by 696 hours (2,087

hours ÷ 12 months x 4 months). Franklin’s annual pay is $33,539.

Multiple Rates – No Regular Schedule

If you work at different pay rates, but not on a regular schedule, your annual pay is the annual

rate you were receiving at the end of the pay period. In the event of your death or

dismemberment, it is the annual rate you were receiving at the time of your death or accident.

The employing office will determine the amount of insurance and withholdings for multiple rate

employees with no regular schedule at the end of each pay period.

Example

Francesca does not work a regular schedule. During the latest biweekly pay period, she worked

50 hours on the day shift at $14.47 per hour and 30 hours on the night shift at $16.96 per hour.

Her annual rate of pay at the end of this pay period is $32,040 ([$14.47 x 50 hours x 26 pay

periods = $18,811] + [$16.96 x 30 hours x 26 pay periods = $13,229] = $32,040).

Part-Time Flexible Schedule

If you hold more than one appointment, of which at least one is a part-time flexible schedule

appointment in the Postal Service, your Basic and Option B insurance amounts are based on the

higher of your pay rates.

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Intermittent Employment Rates

If you are a non-Postal intermittent employee (a non-full time employee with no prearranged

regularly scheduled tour of duty) with FEGLI coverage (see Note below), and you are not a

temporary, intermittent decennial (every ten years) census worker, your annual pay is the annual

rate you received at the end of the pay period. In the event of your death or dismemberment, it is

the annual rate you were receiving at the time of your death or accident.

The employing office must determine the amount of insurance and withholdings for non-Postal

intermittent employees at the end of each pay period.

For FEGLI purposes, during pay periods in which you are not scheduled to work, you are

considered to be in nonpay status. If you are in a nonpay status for 12 consecutive months, your

FEGLI coverage terminates, with a 31-day extension of coverage and the right to convert. If you

return to pay and duty status, your coverage is automatically reinstated.

Note: If you are an intermittent employee, you are excluded from FEGLI coverage by

regulation, except when your intermittent employment follows, with a break in service of no

more than three days, a position in which you were insured and to which you are expected to

return. Your agency makes this determination, not OPM.

Example

Greg is an intermittent employee and is paid $17.84 per hour. His annual rate of basic pay fixed

by law is therefore $37,232 ($17.84 x 2,087 hours). If Greg works only two days (16 hours)

during a particular biweekly pay period, his annual rate of pay for insurance purposes for that

pay period is $7,421 ($17.84 x 16 x 26). (However, he would be covered for the minimum

$10,000 of Basic insurance.)

Certifying the Amount of Insurance When There Is No Regularly

Scheduled Tour of Duty

When you do not have a regularly scheduled tour of duty, upon your death, your employing

office will base its certification of the amount of insurance upon the number of hours you worked

in the last full pay period during which you worked.

Example

Gail, an intermittent employee earning $16.72 per hour, dies. During the last full pay period

before her death, she did not work. During the previous pay period, she worked 64 hours. The

annual rate of pay the employing office would certify is $27,822 ($16.72 x 64 hours x 26 pay

periods = $27,822).

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AMOUNT OF OPTIONAL INSURANCE

 Option A-Standard

 Option B-Additional

 Option C-Family

Option A-Standard

Option A coverage is $10,000. An additional benefit for accidental death and dismemberment

(AD&D) of $10,000 is added if you are under 45 (see “Accidental Death and Dismemberment

(AD&D) Benefits”).

Option B-Additional

Option B coverage comes in 1, 2, 3, 4, or 5 multiples of your annual pay (after your pay is

rounded up to the next even thousand). It does not include the extra $2,000 added for Basic

insurance and does not include an Extra Benefit.

Example

Homer earns $52,578. His BIA is $55,000. He elected 3 multiples of Option B coverage. Each

multiple is worth $53,000.

The amount of your Option B coverage automatically changes whenever your annual pay is

increased or decreased by an amount that will raise or lower pay to a different $1,000 bracket.

If you are eligible to continue Option B coverage as an annuitant or compensationer, the amount

of your Option B is the amount in effect at the time your insurance as an employee stops. Your

insurance as an employee stops either at your separation from service or your completion of 12

months in nonpay status, whichever is earlier.

There is no minimum amount of Option B coverage. This is different than Basic coverage.

Option B coverage for an employee whose annual pay is less than $8,000 is calculated on the

actual salary, not the minimum Basic coverage amount.

There is no maximum Option B amount. However, if your salary is “capped” by law, the

amount of your Option B is based on the capped amount, the amount you are actually being paid.

It is not based on the amount your pay would be without the cap.

The same things that are included in your annual pay for Basic insurance are also included for

Option B. The same things that are not included for Basic insurance are not included for Option

B. (See [link]“Annual Rates of Pay.”)

With Option B there is no Extra Benefit if you are under age 45.

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Option C-Family

Option C covers the lives of your spouse and eligible dependent children. When you elect

Option C, all of your eligible family members are automatically covered. You may elect 1, 2, 3,

4 or 5 multiples of coverage. Each multiple is equal to $5,000 for your spouse and $2,500 for

each eligible dependent child. It does not include the extra $2,000 added for Basic insurance and

does not include an Extra Benefit.

Example

If you elect three multiples of Option C, and your spouse dies, you would receive $15,000 (3

times $5,000). If one of your eligible dependent children dies, you would receive $7,500 (3 times

$2,500).

Eligible family members for Option C include a spouse (including a spouse from a valid

common law marriage or from a valid same-sex marriage) and eligible dependent children.

Eligible dependent children must be unmarried and under age 22, or if age 22 or over, incapable

of self-support because of a mental or physical disability that existed before the child reached

age 22.

Eligible dependent children include your natural children, adopted children, stepchildren (if they

live with you in a regular parent-child relationship), recognized natural children and foster

children (if they live with you in a regular parent-child relationship, including foster children).

Stillborn children are not covered.

If you have any questions about eligible family members, please consult your human resources

office. That office is responsible for determining eligibility.

The number of multiples you elect applies to all of your eligible family members. You cannot

elect a number of multiples for your spouse that is different from the number of multiples for

your eligible dependent children. The number of multiples is also not connected to the number

of family members. You can elect 5 multiples of Option C even if you have only one child, for

example.

There is no Extra Benefit for Option C if you (or a covered family member) are under age 45.

CONCURRENT EMPLOYMENT

 Eligibility

 Amount of Insurance

 Multiple Rate Employee with Part-Time Flexible Schedule Appointment

U.S. Office Of Personnel Management

Eligibility

If you are legally serving in more than one position at the same time – whether in the same or in

different agencies – you are eligible for life insurance coverage as long as at least one of your

positions is a covered position.

You cannot have more than one FEGLI election for each type of coverage, so you cannot have

FEGLI in more than one position. In other words, you cannot carry “two FEGLI policies” even

though you are serving in more than one position or you become reemployed to a FEGLI-eligible

position.

Amount of Insurance

The amount of Basic and Option B insurance is based on the sum of the annual pay for all of

your positions, including the annual pay for a position excluded from life insurance coverage.

The agency which pays the higher salary does the withholding and pays the Government

contribution. Exception: If you are in nonpay status from one position, the agency that is still

paying salary does the withholdings and pays the Government contribution

Exceptions:

 This does not apply to part-time flexible schedule employees in the Postal Service.

 This does not apply to temporary, intermittent decennial (every ten years) census

workers. If one of your positions is a temporary, intermittent, position with the decennial

census, it has no effect on the amount of your Basic or Option B insurance, the

withholdings or Government contribution for your insurance, or determining when 12

months in nonpay status ends.

 If you are in nonpay status from your covered position and you accept a temporary

appointment in which you would normally be excluded from coverage, the amount of

your Basic and Option B coverage is based on the sum of the annual rate of pay for each

position.

 If one of your positions is an excluded position, and you go into nonpay status in that

position, at the end of 12 months in nonpay status, the amount of coverage is no longer

based on the combined salary, but only on the salary from the covered position.

The two salaries are added together before rounding up to the next even thousand and before

adding the additional $2,000 for Basic insurance.

U.S. Office Of Personnel Management

Example

Hannah works full-time for the Department of Energy, with an annual salary of $57,319. She

also works part-time for the IRS; her part-time annual salary is $21,432. Her BIA is $81,000

($57,319 + $21,432 = $78,751, rounded up to $79,000 + $2,000). If Hannah has Option B

coverage, each multiple is worth $79,000 up to a maximum of five multiples.

Concurrent employment does not affect the amount of Option A or Option C coverage. You can

only have one each of those respective coverages.

Multiple Rate Employee with Part-Time Flexible Schedule

Appointment

When you are a multiple rate employee who holds more than one appointment, with at least one

of them being a part-time flexible schedule appointment in the Postal field service, the amount of

Basic and Option B insurance is based on the higher (highest) of the pay rates.

CHANGES IN AMOUNT OF INSURANCE

 Automatic Changes

 Correction of Errors in Annual Pay

Automatic Changes

If you are insured as an employee, the amount of Basic insurance and Option B coverage

automatically changes whenever your annual pay is increased or decreased by an amount that

will raise or lower pay to a different $1,000 bracket. Exception: If you have elected a living

benefit, the amount of your post-election BIA cannot change.

The effective date of your increased/decreased insurance amount is the effective date of your

increased/decreased annual pay.

The amount of your Option A and Option C coverage does not change due to changes in annual

pay.

If you are insured as an annuitant or compensationer, your BIA will not change.

 However, the amount of Basic insurance in force as an annuitant or compensationer may

start to reduce when you reach age 65, depending on the election you made at the time

you retired or became insured as a compensationer.

U.S. Office Of Personnel Management

 Your Option B and Option C coverage as an annuitant or compensationer may also start

to reduce at age 65 depending on the election you make at retirement regarding post-65

reduction.

 Your Option A coverage as an annuitant or compensationer will automatically start to

reduce at age 65.

Correction of Errors in Annual Pay

When a pay change is retroactive, any resulting change in the amount of Basic and Option B

insurance becomes effective retroactively on the effective date of the pay adjustment. The

premiums must be adjusted accordingly.

ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D)

BENEFITS

 When Are Benefits Payable?

 Exclusions

 Automatic Coverage

 Amount of Accidental Death Benefits under Basic Insurance

 Amount of Accidental Dismemberment Benefits under Basic Insurance

 Amount of Accidental Death & Dismemberment Benefits under Option A

 Benefits for Different Accidents

 Benefits following a Living Benefit Election

When Are Benefits Payable?

Accidental death and dismemberment (AD&D) benefits are payable when you sustain bodily

injury solely through violent, external, and accidental means, and as a direct result of the bodily

injury, independently of all other causes, and within one year afterwards, you lose your life, limb

(hand or foot), or eyesight.

 Loss of hand means loss by severance at or above the wrist joint, or equivalent loss, as

determined by OFEGLI.

 Loss of foot means loss by severance at or above the ankle joint, or equivalent loss, as

determined by OFEGLI.

 Loss of eyesight means total and permanent absence of any usable vision in one eye.

Accidental death benefits, if payable, are payable in addition to “regular” FEGLI benefits.

U.S. Office Of Personnel Management

Exclusions

AD&D benefits will not be paid if your death or loss in any way results from, is caused by, or is

contributed to by:

 physical or mental illness;

 the diagnosis of or treatment of a physical or mental illness;

 ptomaine or bacterial infection. However, accidental death and dismemberment benefits

will be paid if the loss is caused by an accidentally sustained external wound;

 a war (declared or undeclared), any act of war, or any armed aggression against the

United States, in which nuclear weapons are actually being used;

 a war (declared or undeclared), any act of war, or any armed aggression or insurrection in

which you are in actual combat at the time bodily injury is sustained;

 suicide or attempted suicide;

 injuring yourself on purpose;

 illegal or illegally obtained drugs that you administer to yourself; or

 driving a vehicle while intoxicated, as defined by the laws of the jurisdiction in which

you were operating the vehicle.

“Regular” Basic insurance and any Optional insurance are payable when you die, regardless of

the cause, even if accidental death benefits are not payable.

Automatic Coverage

AD&D coverage is an automatic part of Basic and Option A insurance for employees at no

additional cost.

There is no AD&D coverage:

 With Options B and C;

 For annuitants or persons insured as compensationers; and

 During the 31-day extension following termination of coverage.

Accidental death benefits are paid to your beneficiary(ies); accidental dismemberment benefits

are paid to you, the insured.

Amount of Accidental Death Benefits under Basic Insurance

Under Basic insurance, accidental death benefits are equal to your BIA, but without the age

multiplication factor. These benefits are payable in addition to your Basic insurance and any

Optional insurance payable.

U.S. Office Of Personnel Management

Example

At age 37, Ian dies as the result of injuries received in a car accident. His BIA at the time of his

death is $48,000. Ian also has 3 multiples of Option B, each worth $46,000. The benefits

payable to Ian’s beneficiary(ies) are as follows:

Regular Death Benefit

Accidental Death Benefit

Basic Insurance

(Includes Extra Benefit)

$86,400 ($48,000 x age

multiplication factor of 1.8)

$48,000

Option B

$138,000

N/A

Since Ian is under age 45 on the date of death, he is eligible for the Extra Benefit. The total

amount payable is $272,400 ($86,400 [Basic] + $48,000 [AD&D] +$138,000 [Option B]).

Amount of Accidental Dismemberment Benefits under Basic

Insurance

Under Basic insurance, accidental dismemberment benefits for the loss of one hand, one foot, or

eyesight in one eye are equal to one-half of your BIA.

For the loss of two or more of these in the same accident, benefits are equal to your full BIA.

Total AD&D benefits for a single accident, no matter how many losses occur, cannot be more

than your full BIA.

Example

Ileana, age 46, has Basic coverage only. She loses an arm in a climbing accident. Her BIA is

$42,000. The amount of accidental dismemberment benefits payable to her is $21,000 for the

loss of her arm. Six months later, she loses sight in both eyes due to the same accident. She is

eligible for another accidental dismemberment payment of $21,000. The total accidental

dismemberment benefit payable to Ileana from this accident is $42,000, equaling her BIA, even

though she suffered three losses (one arm and sight in both eyes).

Two weeks later, Ileana dies as the result of other injuries sustained in that accident. While a

regular death benefit of $42,000 is payable, no accidental death benefit will be payable, since

any additional payment for this accident would be more than Ileana’s BIA.

Amount of Accidental Death & Dismemberment Benefits under Option A

Under Option A, accidental death benefits are equal to the amount of Option A coverage

($10,000). Accidental dismemberment benefits for the loss of one hand, one foot, or eyesight in

one eye are equal to one-half of your Option A coverage ($5,000). For the loss of two or more of

these, benefits are equal to your full Option A coverage.

U.S. Office Of Personnel Management

Total AD&D benefits under Option A for a single accident, no matter how many losses occur,

cannot be more than your Option A benefits of $10,000.

These benefits are payable in addition to your Basic insurance and any Option B insurance

payable. AD&D benefits for Option A are payable only if you were enrolled in Option A at the

time of your accident.

Benefits for Different Accidents

AD&D benefits are payable for each separate accident, regardless of whether benefits were paid

to you for a previous accident.

Example

Jeremy’s BIA is $60,000 and he loses an eye (eyesight in one eye) in an accident. He will be

paid $30,000 in accidental dismemberment benefits. If he later dies in another separate

unrelated accident, his beneficiaries will receive the full $60,000 in accidental death benefits for

the second accident.

Benefits following a Living Benefit Election

If you elect a full living benefit, your post-election BIA is $0. The amount of your AD&D

coverage therefore is also $0.

If you elect a partial living benefit, you still have some Basic insurance left. The amount of your

AD&D coverage is reduced to correspond to your post-election BIA.

A living benefit election has no effect on AD&D benefits under Option A.

HISTORICAL INFORMATION

 Basic Insurance

 Option A

 Option B

 Option C

 Accidental Death and Dismemberment (AD&D)

Basic Insurance

U.S. Office Of Personnel Management

The FEGLI Program started in 1954. At that time, what is now called Basic insurance was the

only coverage offered. In 1968, when Option A insurance began being offered, what is now

called Basic insurance became known as “Regular” insurance. The term “Basic” insurance came

into use in 1981 with the introduction of Options B and C.

Until February 1968 there was no minimum amount of “Regular” insurance and no additional

$2,000 of insurance.

The Extra Benefit (age multiplication factor) became effective in October 1981.

Prior to October 1998, Basic insurance was subject to a maximum salary cap.

Option A

Option A (Standard Optional Insurance) came into effect in February 1968. At that time it was

simply called “optional” insurance. When Options B and C were introduced in 1981, Option A

became known by its current name.

When Basic insurance was subject to a maximum, Option A could be increased beyond the

normal $10,000 amount to compensate for the limitation on Basic. When the maximum on Basic

was removed in 1998, there was no longer a need for Option A to be more than $10,000. Since

then, the only persons with more than $10,000 in Option A coverage were those who retired or

became insured as compensationers with a higher amount of Option A before the removal of the

maximum on Basic.

Option B

Option B (Additional Optional Insurance) became effective in April 1981.

Until October 1998, like Basic insurance, Option B was subject to a maximum salary cap.

Option C

Option C (Family Optional Insurance) became effective in April 1981. Initially, the amount of

coverage was $5,000 for the death of a spouse and $2,500 for the death of an eligible child.

In April 1999 multiples of Option C went into effect, with each multiple (up to five) worth

$5,000 for the death of a spouse (for a maximum of $25,000) and $2,500 for the death of an

eligible child (for a maximum of $12,500 for each child).

Accidental Death and Dismemberment (AD&D)

U.S. Office Of Personnel Management

In November 2000, we added the exclusion for “driving a vehicle while intoxicated, as defined

by the laws of the jurisdiction in which you were operating the vehicle”.

Previously, AD&D benefits were payable only if the death or dismemberment happened within

90 days of the accidental injury. In February 2003, the 90-day period was extended to one year.

In August 2004, we removed the exclusion for hernia.

U.S. Office Of Personnel Management

ELIGIBILITY

 Eligibility for Life Insurance

 Employees Excluded from Coverage

 Eligible Family Members under Option C

 Foster Child

 Child Incapable of Self-Support

 Historical Information

ELIGIBILITY FOR LIFE INSURANCE

 Basic Insurance

 Optional Insurance

Basic Insurance

As a Federal employee, you automatically have Basic insurance, unless you waive it or you are

in a position excluded from FEGLI by law or regulation.

Optional Insurance

Optional insurance is not automatic; you must elect it.

You may elect Optional insurance if:

 You have Basic insurance;

 You do not have a waiver of that type of Optional insurance still in effect (or a waiver of

that number of Option B or Option C multiples still in effect); and

 Your periodic pay, after all other deductions, is enough to cover the full cost.

EMPLOYEES EXCLUDED FROM COVERAGE

 Exclusions by Law

 Exclusions by Regulation

U.S. Office Of Personnel Management

Exclusions by Law

The law excludes you from FEGLI coverage if:

 You are an employee of a corporation supervised by the Farm Credit Administration, if

private interests elect or appoint a member of the board of directors;

 You are not a citizen or national of the United States and your permanent duty station is

outside the United States. Exception: You are eligible for FEGLI if you met the

definition of employee on September 30, 1979, by service in an Executive agency (as

defined in 5 U.S.C. 105), the United States Postal Service, or the Smithsonian Institution

in the area which was then known as the Canal Zone;

 You are a teacher in a Department of Defense dependents school overseas, if employed

by the Federal Government in a non-teaching position during the recess period between

school years; or

 You were first employed by the Government of the District of Columbia on or after

October 1, 1987. Exceptions: You are eligible for FEGLI if you are:

o An employee of St. Elizabeth's Hospital, who accepts employment with the

District of Columbia Government following Federal employment without a break

in service, as provided in section 6 of Pub. L. 98-621;

o The Corrections Trustee or an employee of the Trustee who accepts employment

with the District of Columbia Government within three days after separating from

the Federal Government;

o The Pretrial Services, Parole, Adult Probation and Offender Supervision Trustee

or an employee of the Trustee;

o Effective October 1, 1997, a judicial or non-judicial employee of the District of

Columbia Courts, as provided by Pub. L. 105-33; or

o Effective April 1, 1999, an employee of the Public Defender Service of the

District of Columbia, as provided by Pub. L. 105-274.

Exclusions by Regulation

The regulations exclude you from FEGLI coverage if:

 You are serving under an appointment limited to one year or less. Exceptions: You are

eligible for FEGLI coverage if:

o Your full-time or part-time temporary appointment has a regular tour of duty and

follows a position in which you were insured, with a break in service of no more

than three days (unless during that prior position you had already completed 12

months in nonpay status);

o You are an acting postmaster;

o You are a Presidential appointee appointed to fill an unexpired term; or

o You are a temporary employee who receives a provisional appointment as defined

in 5 CFR 316.403;

U.S. Office Of Personnel Management

 You are employed for an uncertain or purely temporary period, employed for brief

periods at intervals, or are expected to work less than six months in each year. Exception:

You are eligible for FEGLI coverage if you are employed as in intern under the Pathways

Programs under Schedule D or under an OPM-approved career-related work-study

program under Schedule D lasting at least 1 year, and you are expected to be in pay status

for at least one-third of the total period of time from the date of your first appointment to

the completion of the work-study program;

 You are an intermittent employee (a non-full-time employee without a regularly

scheduled tour of duty). Exception: You are eligible for FEGLI coverage if your

appointment follows, with a break in service of no more than three days, a position in

which you were insured and to which you are expected to return (unless during that prior

position you had already completed 12 months in nonpay status);

 Your pay, on an annual basis, is $12 a year or less;

 You are a beneficiary or patient employee in a Government hospital or home;

 You are paid on a contract or fee basis. Exception: You are eligible for FEGLI coverage

when you are a United States citizen, appointed by a contract between you and the

Federal employing authority which requires your personal service, and paid on the basis

of units of time; or

 You are paid on a piecework basis. Exception: You are eligible for FEGLI coverage

when your work schedule provides for full-time or part-time service with a regularly

scheduled tour of duty.

OPM makes the final determination about whether the above categories apply to a specific

employee or group of employees.

If you were an employee of the Senate Restaurants after the operations of the Senate Restaurants

were contracted to be performed by a private contractor, and

 you accepted employment with the private business concern as part of the transition; and

 you elected to continue your Federal retirement benefits and FEGLI coverage; and

 you did not waive FEGLI coverage;

you are eligible for FEGLI coverage as long as you remain continuously employed with the

private contractor..

If you were a Federal employee who was employed by the Department of Defense to support the

Civilian Marksmanship Program as of the day before the date of the transfer of the Program to

the Corporation for the Promotion of Rifle Practice and Firearms Safety, and

 if you accepted employment by the Corporation as part of the transition; and

 you did not waive FEGLI;

U.S. Office Of Personnel Management

 you are eligible for FEGLI coverage as long as you remain continuously employed with

the Corporation..

If you have an interim appointment under 5 CFR 772.102, you are eligible for FEGLI coverage

even if your position is excluded by regulation. You are not eligible if your position is excluded

by law.

ELIGIBLE FAMILY MEMBERS UNDER OPTION C

 Family Members

 Spouse

 Children

 Recognized Natural Child

 Parent-Child Relationship

Family Members

The FEGLI law defines family members for Option C coverage as your spouse and your

unmarried dependent children under age 22.

No other family members are eligible under your Option C coverage.

Spouse

Option C covers your spouse (opposite-sex or same-sex) from a valid religious or civil

ceremony. It also covers your opposite-sex or same-sex spouse from a valid common-law or

valid foreign marriage. See “Extension of Benefits to Married Federal Employees, Annuitants,

and Their Families,” in the Introduction section under Historical Information.

NOTE: You need to check with your state, not your agency or OPM, to determine the validity of

a common-law marriage.

Option C does not include a former spouse, so even if you are paying Option C premiums, you

cannot file an Option-C claim based on the death of a former spouse. Your spouse loses

eligibility (and coverage) on the date your divorce is final. There is no 31-day extension of

coverage or right to convert.

Children

Children must be unmarried and under age 22 to be eligible under Option C.

U.S. Office Of Personnel Management

Exception: A child age 22 or over is eligible only if the child is incapable of self-support because

of a physical or mental disability that existed before the child reached age 22.

Your eligible dependent children include:

 A child born within or outside of a marriage;

 An adopted child;

 A recognized natural child (including children born out of wedlock); or

 A stepchild or foster child who lives with you in a regular parent-child relationship.

Children born within marriage and adopted children are eligible whether or not they live with

you or are financially dependent upon you.

Stepchildren and foster children must live with you in a regular parent-child relationship to be

eligible under Option C.

A stillborn child is not an eligible family member under Option C.

A grandchild is not an eligible family member under Option C (unless the grandchild meets all

the requirements of a foster child).

If your child’s marriage ends and he/she is under the age of 22 or over the age of 22 and

incapable of self-support, the child is again an eligible family member under Option C.

Recognized Natural Child

A recognized natural child is your child born outside of marriage whom you have acknowledged

as your child. A recognized natural child is an eligible family member if he/she lives with you or

if you contribute to the support of the child.

An insured individual is considered to be the father of such a child if one or more of the

following conditions are met:

 The individual acknowledged paternity in writing;

 A court ordered the individual to provide support;

 Before the individual died, a court pronounced him to be the father;

 The individual named himself as the father on a certified copy of the public record of

birth or church record of baptism; or

 Public records, such as records of schools or social welfare agencies, show that – with his

knowledge – the individual was named as the father of the child.

If paternity is not established by one of the above means, OFEGLI may consider other evidence,

such as the child's eligibility as a recognized natural child under other State or Federal programs

or proof that the father included the child as a dependent child on his income tax returns.

U.S. Office Of Personnel Management

Parent-Child Relationship

A “regular parent-child relationship” means that you are:

 Exercising parental authority, responsibility, and control over the child;

 Caring for, supporting, disciplining, and guiding the child; and

 Making decisions about the child's education and medical care.

FOSTER CHILD

 Eligibility Requirements

 When Coverage Ends

 When a Child Is Not Considered a Foster Child

 How to Get a Foster Child Covered

 Sample Certification

Eligibility Requirements

Your foster child is eligible to be covered under Option C when:

 The child is unmarried and under age 22 (if the child is over age 22, he/she must be

incapable of self-support because of a physical or mental disability that existed before the

child reached age 22);

 The child lives with you;

 The parent-child relationship is with you, not the child’s biological parent;

 You are the child’s primary source of financial support; and

 You expect to raise the child to adulthood.

You do not need to be related to the child, nor do you need to legally adopt him/her. As long as

the above requirements are met, the child is an eligible foster child, even if:

 The child's natural parents are alive;

 The child’s natural parent(s) lives with you; or

 The child receives some financial support from other sources (for example, social

security payments or support payments from a parent).

Common examples of a foster parent-child relationship are:

 You are living with, supporting, and raising a child whose parents have died.

 A child is living with you under a pre-adoption agreement.

 A child is in your legal custody.

U.S. Office Of Personnel Management

When Coverage Ends

Your foster child’s coverage continues until he/she:

 Marries;

 Reaches age 22;

 Becomes capable of self-support if age 22 or over;

 Is no longer living with you; or

 Is no longer financially dependent on you.

If your foster child moves out of your home to live with a biological parent, the child cannot

again be covered as your foster child unless:

 The biological parent dies;

 The biological parent is imprisoned;

 The biological parent becomes unable to care for the child due to a disability; or

 You obtain a court order for custody that takes parental responsibility from the biological

parent and gives it to you.

When a Child Is Not Considered a Foster Child

A child is not considered a foster child when:

 The child has been placed in your home by a welfare or social service agency under an

agreement where the agency retains control of the child and/or pays for maintenance.

 The child is living with you temporarily, or you are raising the child temporarily.

Example 1

Joyce’s nephew moves in with Joyce while he is attending a nearby college. The nephew does

not qualify as a foster child, since the living arrangement is a temporary one for convenience.

Example 2

Keith’s unmarried teenage daughter has a baby. Keith and his wife are raising the grandchild

while their daughter finishes school. The grandchild does not qualify as a foster child since

Keith is raising the child only temporarily and there is no expectation that Keith will be raising

the child to adulthood.

U.S. Office Of Personnel Management

How to Get a Foster Child Covered

For your foster child to be covered under Option C, you must sign a certification stating that your

foster child meets all the requirements and that you will notify your employing office if the child

marries, moves out of the home, or stops being financially dependent on you.

If you already have a certification on file for the FEHB Program or FEDVIP, you do not have to

complete a new certification for Option C coverage, unless you are electing or increasing

coverage because you acquire a foster child. You may wish to complete a second certification,

however, so you understand FEGLI coverage for a child ends at age 22 (FEHB coverage for an

eligible child ends at age 26).

Sample Certification

You may use the following pattern statement to establish your foster child's eligibility for

coverage under Option C. Your employing office must file the original certification in your

Official Personal Folder (or its equivalent).

U.S. Office Of Personnel Management

CERTIFICATION FOR FOSTER CHILDREN for the FEGLI Program

I have been informed of the following requirements for certifying foster child

eligibility under the Federal Employees’ Group Life Insurance Program:

1. The child must be unmarried and under age 22. (If the child is over age 22,

he/she can only be covered if he/she is incapable of self-support because of a

disabling condition that began before age 22. I must provide documentation of

this to my employing office.);

2. The child must be living with me;

3. The parent-child relationship must be with me, not with the biological parent.

This means that I am exercising parental authority, responsibility, and control; I

am caring for, supporting, disciplining, and guiding the child; and I am making

the decisions about the child’s education and medical care;

4. I must be the primary source of financial support for the child; and

5. I must expect to raise the child to adulthood.

I understand that if the child moves out of my home to live with a biological parent,

he/she loses coverage and cannot ever again be covered as a foster child unless:

1. The biological parent dies;

2. The biological parent is imprisoned;

3. The biological parent becomes incapable of caring for the child due to a

disability; or

4. I obtain a court order taking parental responsibility away from the biological

parent and giving it to me.

This is to certify that: [name of child] lives with me; I have a regular parent-child

relationship with [name of child], as described above; I am the primary source of

financial support for [name of child]; and I intend to raise [name of child] into adulthood.

I will immediately notify my employing office (and the health benefits carrier, if

applicable) if the child marries, moves out of my home, or ceases to be financially

dependent on me.

_____________________________

(Print name of employee/annuitant)

_____________________________

(Signature of employee/annuitant)

____________________

(Date)

(End of notice)

U.S. Office Of Personnel Management

CHILD INCAPABLE OF SELF-SUPPORT

 Coverage

 Requirements

 Documentation of Incapacity for Self-Support

 Medical Conditions That Would Cause Children to Be Incapable of Self-Support

during Adulthood

Coverage

Your unmarried dependent child age 22 or over is eligible to be covered under Option C if he/she

is incapable of self-support because of a physical or mental disability that existed before the

child reached age 22.

Requirements

Your employing office makes the determination as to whether your overage dependent is eligible

for coverage. Your child age 22 or over may be considered incapable of self-support only if

his/her physical or mental disability is expected to continue for at least one year and, because of

the disability, he/she isn't capable of working at a self-supporting job. (Self-supporting is usually

considered to be the equivalent of a GS-5, step 1, salary.)

A disability such as blindness or deafness is not qualifying in itself because it does not

necessarily make someone incapable of self-support. The onset of a disease before age 22 that

doesn't result in incapacity for self-support until age 22 or after does not qualify a child for

continued eligibility for coverage under Option C.

The criteria for your employing office's determination are the same as those for the FEHB

Program and FEDVIP. If you have already established eligibility for your child under the FEHB

Program, you do not need to establish eligibility again under FEGLI.

Documentation of Incapacity for Self-Support

To continue your child's eligibility under Option C once he/she reaches age 22, you must submit

to your employing office a doctor's certificate about your child’s disability. The doctor must

sign the certificate, and the certificate must show the doctor’s office address.

The certificate must state the following:

 Your child’s name;

 That your child is incapable of self-support because of a physical or mental disability;

 That the disability started before the child reached age 22;

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 That the disability is expected to continue for more than one year;

 The type of disability;

 How long the disability has existed; and

 The disability’s expected future course and duration.

Your employing office must document its determination in your Official Personnel Folder (or its

equivalent). The determination may be permanent or it may be for a specific period of time,

after which you periodically may need to provide additional information to continue your child’s

eligibility.

When you file a claim for the death of an overage dependent, your employing office must certify

to OFEGLI that the child met the requirements for coverage. If you don't have an employing

office determination on file, you may provide the required doctor’s certificate after the child’s

death so that your employing office can make a determination and certification to OFEGLI.

Medical Conditions That Would Cause Children to Be Incapable of

Self-Support during Adulthood

Documentation of one of the following conditions automatically makes your child age 22 or over

eligible for coverage under Option C if the condition existed before age 22. If your child’s

condition is not listed, your employing office will make its determination based on the

documentation you submit:

 AIDS – CDC classes A3, B3, C1, C2, and C3 (not seropositivity alone)

 Advanced muscular dystrophy

 Any malignancy with metastases or which is untreatable

 Chronic hepatic failure

 Chronic neurological disease, whatever the reason, with severe mental retardation or

neurologic impairment, for example:

o Cerebral palsy

o Ectodermal dysplasia

o Encephalopathies

o Uncontrollable seizure disorder

 Chronic renal failure

 Inborn errors of metabolism with complications, such as the following:

o Adrenoleukodystrophy

o Gaucher disease

o Glycogen storage diseases

o Homocysteinuria

o Lesch-Nyhan disease

o Mucopolysacharide disease

o Nieman-Pick Disease

o Phenylketonuria

o Primary hyperoxaluria

o Tay-Sachs disease

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 Mental retardation with IQ of 70 or less

 Severe acquired or congenital heart disease with decompensation which is not correctable

 Severe autism

 Severe juvenile rheumatoid arthritis

 Severe mental illness requiring prolonged or repeated hospitalization

 Severe organic mental disorder

 Xeroderma pigmentosa

HISTORICAL INFORMATION

 Active Duty Military

 Part-Time Employees

 D.C. Government Control Board

 Foster Children

 Same-Sex Spouses

Active Duty Military

From August 1, 1956 until June 6, 1986 by law FEGLI coverage terminated whenever a Federal

employee was called up to active military duty. As of June 6, 1986, employees called up to

active duty could keep their FEGLI coverage for up to 12 months, just as any other employee in

nonpay status. Public Law 110-181, the Department of Homeland Security Appropriations Act,

enacted January 28, 2008, changed this provision by authorizing the continuation of life

insurance coverage for up to 24 months instead of 12 months while in nonpay status. See

“Separation From Service” at [link].

Part-Time Employees

Part-time employees were originally excluded. They became eligible some time between 1961

and 1964.

D.C. Government Control Board

Employees of the D.C. Control Board (District of Columbia Financial Responsibility and

Management Assistance Authority), who made an election under the Technical Corrections to

Financial Responsibility and Management Assistance Act (section 153 of Pub. L. 104-134) to be

considered Federal employees for life insurance and other benefits purposes were eligible for

FEGLI coverage. (Employees of the D.C. Control Board who were former Federal employees

were subject to the provisions of this Handbook concerning canceling waivers.)

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Foster Children

Foster children became eligible for Option C coverage effective October 30, 1998. Before that,

foster children were not eligible.

Same-Sex Spouses

Effective June 26, 2013, a same-sex spouse of a valid marriage is recognized as a family member

for benefits under the FEGLI Program. Legal same-sex marriages entered into following this

decision will be treated in the same manner as opposite-sex marriages, regardless of an

employee’s or annuitant’s state of residency. Consistent with OPM’s long-standing policy of

recognizing the legal foreign marriages of opposite-sex couples for purposes of FEGLI, OPM

will also recognize legal same-sex marriages granted in countries that authorize such marriages,

regardless of an employee’s or annuitant’s state of residency, for purposes of these programs.

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COST OF INSURANCE

 Cost of Basic Insurance

 Withholdings for Basic Insurance

 Government Contribution for Basic Insurance

 Cost of Optional Insurance

 Withholdings for Optional Insurance

 Miscellaneous Withholding and Contribution Provisions

 Transferring to a Different Payroll Office

 Direct Premium Payments

 Remittance to OPM

 Adjusting Errors

 Historical Information

COST OF BASIC INSURANCE

The cost of Basic insurance is shared between you and the Government. You pay two-thirds of

the cost, and the Government pays one-third. Exception: The U.S. Postal Service (USPS) pays

the full cost of Basic insurance for Postal employees.

Your age does not affect the cost of Basic insurance. The Basic premium rate is the same for

each enrollee in the group policy regardless of age or health status.

There is no extra cost for the extra benefit for those under age 45. There is no extra cost for

Accidental Death and Dismemberment (AD&D) coverage.

The premium for Basic insurance does not change on a regular basis. The Office of Personnel

Management (OPM) reviews the premiums periodically and will announce premium changes

prior to their effective date. Premium changes are published in a Federal Register notice and are

also sent to agencies and retirement systems. The premiums are also updated on the FEGLI

website http://www.opm.gov/healthcare-insurance/life-insurance/.

As required by law, Basic insurance coverage uses a composite premium structure. This means

the Basic premium rate is the same for each enrollee in the group policy, regardless of age or

health status. As such, younger employees may pay a comparatively higher premium than they

would with coverage based, in part, on age (like Optional insurance) or with a commercial

individually underwritten policy.

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WITHHOLDINGS FOR BASIC INSURANCE

 Prefunding of Basic

 Amount of Withholding for Employees

 Amount of Withholding for Annuitants and Compensationers

o Cost for Annuitants for Each $1,000 of Your BIA

o Cost for Compensationers for Each $1,000 of Your BIA

Prefunding of Basic

Unlike many other employer-sponsored life insurance programs, FEGLI coverage can be

continued into retirement. The FEGLI retirement benefit is prefunded by premium costs so that

after age 65 (or at retirement, if later) some coverage can be continued by retirees at no cost. The

cost of this post-65 benefit is included in the FEGLI Basic level premium. The net effect of the

level premium and post-65 benefit is that younger enrollees' premiums cover the cost of

coverage they currently have, and also pre-funds a portion of the costs related to coverage they

will have later in their careers and in retirement. Since the Government contributes a share of the

Basic premium, the employee share remains relatively competitive with the cost of private term

insurance.

Amount of Withholding for Employees

Your share of the cost of Basic insurance is $0.15 biweekly for each $1,000 of your Basic

Insurance Amount (BIA). This amount must be withheld from your pay for each pay period

during which you are in pay status for any part of the pay period. Exception: The U.S. Postal

Service (USPS) pays the full cost of Basic insurance for Postal employees.

Amount of Withholding for Annuitants and Compensationers

The “regular” premium for Basic insurance for annuitants and compensationers is the same

amount as for employees; however, for annuitants it is computed on a monthly basis, and for

compensationers it is computed every four weeks. Exception:

 USPS annuitants pay the same premium as other annuitants. They no longer receive the

premium subsidy they received as active employees.

 USPS compensationers continue to receive the premium subsidy until they separate from

service or complete 12 months in nonpay status, whichever happens first; after that, they

pay the same premium as other compensationers.

If you are an annuitant, your retirement system will withhold your premium from your monthly

annuity; if you are a compensationer, the Office of Workers’ Compensation Programs (OWCP)

will withhold your premium from your compensation. Basic withholdings for non-Postal

compensationers begin as soon as you start receiving compensation, even during the first 12

months of nonpay status.

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The total of the Basic premium(s) withheld from your annuity after retirement will depend on the

reduction election you made at the time you retired or became insured as a compensationer. The

reduction, if any, begins at age 65 or at retirement, whichever is later. Exception: If you retired

or started receiving compensation before January 1, 1990, and elected 75 Percent Reduction,

Basic insurance is free.

The “regular” premium for Basic insurance stops the month after you turn 65. If you elected 75

Percent Reduction, your Basic insurance is free once you are retired and reach 65.

If you elected 50 Percent Reduction or No Reduction, there is an extra premium for this higher

level of coverage. The extra premium starts as soon as you retire or become insured as a

compensationer and continues even after the regular premium stops at age 65.

Cost for Annuitants for Each $1,000 of Your Basic Insurance Amount

75 Percent

Reduction

50 Percent

Reduction

Until the Month after Your

Birthday

$0.3250

Monthly

$0.9650

monthly

$2.2650

monthly

Starting the Month after

Your 65

Birthday

Free

$0.64*

monthly

$1.94*

monthly

* The applicable withholding for 50 Percent Reduction or No Reduction will be withheld from

your annuity for life (unless you cancel your coverage or change to 75 Percent Reduction).

If you retired before January 1, 1990, Basic insurance is free before and after your 65

birthday.

Withholdings are based on your Basic Insurance Amount (BIA) at the time of your retirement. If

you elected 50 Percent Reduction, the withholdings do not change when the amount of insurance

in force begins to reduce.

Cost for Compensationers for Each $1,000 of Your BIA

75 Percent

Reduction

50 Percent

Reduction

Until the Month after Your

Birthday

$0.30

every 4 weeks

$0.89

every 4 weeks

$2.09

every 4 weeks

Starting the Month after Your

Birthday

Free

$0.59

every 4 weeks*

$1.79

every 4 weeks*

* The applicable withholding for 50 Percent Reduction or No Reduction will be withheld from

your compensation for life (unless you cancel your coverage or change to 75 Percent Reduction).

U.S. Office Of Personnel Management

If you started receiving compensation before January 1, 1990, Basic insurance is free before and

after your 65

birthday.

Withholdings are based on your BIA at the time of your continuation of insurance as a

compensationer. If you elected 50 Percent Reduction, the withholdings do not change when the

amount of insurance in force begins to reduce.

Example

Kim elected 50 Percent Reduction for her Basic insurance upon her retirement. Her BIA is

$66,000 and her 65

birthday is 02-21-13. She will pay $63.69 ($0.9650 x 66) monthly for this

coverage through February 2013. Beginning March 2013, the premium will be $42.24 ($0.64 x

66) monthly. (This will show up in her April annuity payment, which is for the month of March.)

Starting on April 1, 2013, her coverage will begin reducing by 1 Percent per month ($660/mo.)

and will continue to reduce until the 50 Percent Reduction is completed ($33,000) . She will

continue to pay the monthly premium for the 50 Percent reduction for the rest of her life, unless

she cancels her insurance or changes to the 75 Percent Reduction.

GOVERNMENT CONTRIBUTION FOR BASIC

INSURANCE

 Government Contribution

 Employees

 Annuitants and Compensationers

Government Contribution

The Government's share of the cost of Basic insurance is an amount equal to one-half of your

withholding (which means one-third of the total premium). (See Exception above for USPS

employees.) The current government share per $1,000 is $0.0750 biweekly and $ 0.1625

monthly. There is no government contribution for Basic while the insured is in a nonpay status.

Employees

Your agency must pay the Government contribution for each pay period during which you are

insured and in pay status for any part of the pay period.

The Government contribution comes from the appropriation or fund that is used for the payment

of your salary. For an elected official, the contribution must come from the appropriation or

fund that is available for payment of other salaries in the same office.

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Annuitants and Compensationers

For annuitants, OPM pays the Government contribution. Exception: The USPS pays the

Government contribution for Postal annuitants retired after December 31, 1989.

For compensationers, your agency continues to pay the Government contribution until you

separate from service or complete 12 months in nonpay status, whichever happens first; after

that, OPM pays the Government contribution. Exception: The USPS continues to pay the

Government contribution for Postal compensationers who became insured as compensationers

after December 31, 1989, even after you have separated or completed 12 months in nonpay

status.

Note: The Government contribution for annuitants and compensationers is based on the

“regular” premium for Basic insurance. There is no Government contribution toward the extra

premium for those who elect 50 Percent Reduction or No Reduction.

The Government contribution stops the month after your 65

birthday, the same time your

regular premium withholding for Basic insurance stops.

COST OF OPTIONAL INSURANCE

 Payment for Optional Insurance

 Age Bands

Payment for Optional Insurance

You pay the full cost of all Optional insurance. There is no Government contribution toward the

cost of any Optional insurance.

AD&D coverage is for employees only. There is no extra cost for the AD&D coverage included

under Option A.

The premiums for Optional insurance do not change on a regular basis. OPM reviews the

premiums periodically and will announce premium changes prior to their effective date.

Premium changes are published in a Federal Register notice and are also sent to agencies and

retirement systems. The premiums are also updated on the FEGLI website

http://www.opm.gov/healthcare-insurance/life-insurance/.

Age Bands

The cost of Optional insurance depends on your age. Optional insurance premiums are based on

five-year age bands beginning at age 35. You are considered to reach the next age band on the

pay period following the pay period in which your birthday occurs.

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Example

Laurence is 44 and has Basic insurance, Option A, and 2 multiples of Option B. On July 10,

2013, Laurence turned 45. He began paying the Option A and Option B premiums for the age

45-49 age bracket the pay period beginning July 14, 2013.

WITHHOLDINGS FOR OPTIONAL INSURANCE

 Option A – Employees

 Option B – Employees

 Option C – Employees

 Annuitants and Compensationers

For optional insurance withholding purposes, we assume you reach these ages on the day of the

pay period that starts after your birthday.

Option A – Employees

The biweekly cost* of Option A coverage is:

For employees under age 35

$0.30

For employees ages 35 through 39

$0.40

For employees ages 40 through 44

$0.60

For employees ages 45 through 49

$0.90

For employees ages 50 through 54

$1.40

For employees ages 55 through 59

$2.70

For employees ages 60 and over

$6.00

This amount must be withheld from your pay for each pay period during which you are in pay

status for any part of the pay period.

* These are the current rates. They may change in future years.

U.S. Office Of Personnel Management

Option B – Employees

The biweekly cost* per $1,000 of Option B coverage is:

For employees ages 35 and under

$0.02

For employees ages 35 through 39

$0.03

For employees ages 40 through 44

$0.05

For employees ages 45 through 49

$0.08

For employees ages 50 through 54

$0.13

For employees ages 55 through 59

$0.23

For employees ages 60 through 64

$0.52

For employees ages 65 through 69

$0.62

For employees ages 70 through 74

$1.14

For employees ages 75 through 79

$1.80

For employees ages 80 & Over

$2.40

This amount must be withheld from your pay for each pay period during which you are in pay

status for any part of the pay period.

* These are the current rates. They may change in future years.

U.S. Office Of Personnel Management

Option C – Employees

The biweekly cost* per multiple of Option C coverage is:

For employees under age 35

$0.22

For employees ages 35 through 39

$0.29

For employees ages 40 through 44

$0.42

For employees ages 45 through 49

$0.63

For employees ages 50 through 54

$0.94

For employees ages 55 through 59

$1.52

For employees ages 60 through 64

$2.70

For employees ages 65 through 69

$3.14

For employees ages 70 through 74

$3.60

For employees ages 75 through 79

$4.80

For employees ages 80 and over

$6.60

This amount must be withheld from your pay for each pay period during which you are insured

and in pay status for any part of the pay period.

* These are the current rates. They may change in future years.

Note: Option C premiums are based on your age, not the age of any of your eligible family

members.

You can use the FEGLI Calculator to calculate the cost of FEGLI coverage.

Annuitants and Compensationers

The cost of Optional insurance for annuitants and compensationers is the same as that for

employees; however, for annuitants it is computed on a monthly basis, and for compensationers

it is computed every four weeks. The premiums for compensationers (who are paid every four

weeks) are two times the biweekly premium.

The cost of Optional insurance continues to increase when you move to a new age band, just as it

does for employees.

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For Option A, withholdings stop the month after your 65

birthday, and the coverage is free.

For Options B and C, whether you continue to pay premiums in retirement/compensation after

age 65 depends on the retirement election you make regarding the amount of reduction you want

when you turn 65. If you elect Full Reduction, withholdings stop the month after your 65

birthday, and the coverage is free while it is reducing. If you elect No Reduction, withholdings

for your appropriate age band continue after age 65 (unless you cancel coverage or change to

Full Reduction).

Shortly before you reach age 65, you will have a second opportunity to change the Option B

and/or Option C (as applicable) election you made at retirement. At that time you can change

your “Full Reduction” election to “No Reduction”, and vice versa. If you do nothing when given

this opportunity at age 65, your initial election at time of retirement will remain in effect. (For

employees who retire after age 65, they will have one opportunity at time of retirement to elect

their reduction levels).

MISCELLANEOUS WITHHOLDING AND

CONTRIBUTION PROVISIONS

 Basis for Withholdings and Contributions

 Other Than Biweekly Pay Periods

 Annual Pay for Other Than 52 Work Weeks

 Effect of a Living Benefit Election

 Concurrent Employment

 Separation for Retirement or Compensation

 Nonpay Status

 Insufficient Pay

Occasional

Ongoing

 Terminal Leave

Basis for Withholdings and Contributions

Withholdings (and Government contributions, when applicable) are based on the amount of

insurance last in force during the pay period. Usually this is the amount of insurance you have

on the last day of the pay period. However, if you die or separate during a pay period, the

amount of withholding is based on the amount of insurance in force on the date of your death or

separation.

The amount of withholdings and contributions for non-Postal intermittent employees must be

determined at the end of each pay period.

There are no pro-rated premiums. You pay the premium for the full pay period even if you were

paid for only part of that pay period.

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Other Than Biweekly Pay Periods

If you are paid on a basis other than biweekly, your employing office must convert the biweekly

amount to correspond to your pay periods. For Basic insurance and Option B, your agency must

adjust the amount to the nearest one-tenth of 1 cent. For Options A and C, your agency must

adjust the amount to the nearest cent.

Annual Pay for Other Than 52 Workweeks

If your annual pay is paid during a period shorter than 52 workweeks, the amount withheld from

your pay is the amount obtained by converting the biweekly rate to an annual rate and prorating

the annual rate over the number of installments of pay regularly paid during the year.

Example

Leonore has a salary of $47,500, giving her a BIA of $50,000. She is paid biweekly but works

only 20 pay periods each year.

1. Convert the biweekly rate to an annual rate ($0.15(Basic) x 26 pay periods = an annual

rate of $3.90 per $1,000 of coverage).

2. Divide the annual rate by the number of pay periods ($3.90 ÷ 20 = $0.195 per $1,000 of

coverage per pay period, or $0.195 x 50 = $9.75 per pay period).

This calculation process applies to both Basic and Optional insurance. For Optional insurance,

use the applicable age band rate to convert biweekly rate to an annual rate. It is used mostly for

classes of employees, such as teachers, who are paid an annual pay but who usually receive their

pay over a 9- or 10-month school year.

It does not apply to classes of employees who are paid at hourly, daily, or other rates, even

though these rates may be derived from an annual pay rate.

Effect of a Living Benefit Election

If you elect a full living benefit, your withholding for Basic insurance and the Government

contribution stop at the end of the pay period in which your living benefit election is effective.

If you elect a partial living benefit (available to employees only), your withholding for Basic

insurance and the Government contribution are each reduced at the end of the pay period in

which your living benefit election is effective. The new withholding and contribution amount

are based on your post-election BIA. This post-election Basic Insurance Amount never changes.

The post-election Basic Insurance Amount remains the same even if your salary changes.

A living benefit election has no effect on your withholdings for Optional insurance.

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Example

Matthew has Basic insurance and 1 multiple of Option B. His salary is $43,879, giving him a

BIA of $46,000. He elected a partial living benefit, which was effective 8/18/12; his post-

election BIA is $6,000. Starting with the pay period ending 8/19/12, Matthew’s withholding for

Basic insurance will be based on his $6,000 post-election BIA. The withholding for his Option B

coverage will still be based on $44,000, since the value of his Option B didn’t change.

Concurrent Employment

The agency which pays the higher salary does the withholding and pays the Government

contribution. Exception: If you are in nonpay status from one position, the agency that is still

paying salary implements the withholdings and pays the Government contribution.

Separation for Retirement or Compensation

No withholdings or contributions are required between the end of the pay period in which you

separate and the beginning date of your annuity or compensation.

Nonpay Status

Your FEGLI coverage continues for up to 12 months when you go into nonpay status.

If you are in nonpay status for part of a pay period, premiums will be withheld from your salary.

The withholdings and Government contribution for FEGLI Basic and the withholdings for

optional coverage are required for the full pay period, even if you only worked for part of the pay

period. This also includes if you are furloughed for part of a pay period. FEGLI premiums are

not prorated.

No payment is required when you are in nonpay status for an entire pay period. This applies to

both your share and the Government contribution. Exceptions:

 If you are in nonpay status while receiving compensation, OWCP will make withholdings

from your compensation. Your employing office pays the Government contribution until

you separate or complete 12 months in nonpay status. Note: The U.S. Postal Service

(USPS) continues to pay the full cost of Basic insurance for Postal employees during

their first 12 months in nonpay status while in receipt of compensation, or until

separation, if that is earlier.

 If you accept another position while you are in nonpay status, the agency that is actually

paying you a salary will withhold premiums from your salary. The withholding for Basic

insurance (and for Option B, if you have that coverage) is based on the combined salaries

U.S. Office Of Personnel Management

of the two positions, unless the “new” position is a temporary position (in that case the

withholdings for Basic and Option B will be based on whichever salary is higher).

 There are certain nonpay situations during which you must continue to make premium

payments on a direct pay basis.

Insufficient Pay

Occasional

Deductions from pay are made according to the order of precedence set forth in the U.S.

Treasury Financial Manual. After all other required deductions, if your pay for a particular pay

period is not enough to cover the full withholdings for life insurance, the amount withheld must

first be applied to Basic insurance. Any balance of pay remaining must then be applied to

Optional insurance (first to Option B, then Option A, then Option C). This includes if your

insufficient pay is due to a government furlough.

Ongoing

When your employing office expects that during the next six months or more, your regular pay

(or annuity or compensation), after all other deductions, will not be enough to cover the required

withholdings for your insurance, your employing office must notify you. This includes if your

insufficient pay is due to a government furlough.

You may cancel or reduce other deductions that are not mandatory from your pay in order to

bring the net pay up to the required amount.

If you have more than one type of Optional insurance, and your pay is not enough to cover all the

premiums but is enough for the premiums of one or more of the coverages, you can reduce

coverage to a point where your pay is enough to cover the withholdings.

You may also choose to pay premiums directly. If you do not choose direct payment, and you do

not choose to terminate some or all of your coverage, your employing office will terminate your

coverage administratively according to the guidance in the U.S. Treasury Financial Manual

described above. If your pay is not sufficient for any premium withholding, all coverage will be

terminated. Your employing office will terminate coverage in the following order:

 The multiples of Option C; then

 Option A; then

 The multiples of Option B; then

 Basic insurance.

Contact your servicing human resources office for more information.

Terminal Leave

U.S. Office Of Personnel Management

A withholding is not normally made from a lump-sum payment for annual leave when you

separate from Federal service. However, if the insured has an underpayment of premiums the

agency can collect from the annual leave lump-sum payment.

TRANSFERRING TO A DIFFERENT PAYROLL OFFICE

 Daily Proration Rule

 Daily Rate

o Basic Insurance

o Optional Insurance

 Retiring Employees

o Under Age 65 on the Starting Date of Annuity

o Age 65 or over on the Starting Date of Annuity

Daily Proration Rule

The Daily Proration Rule applies when you transfer to a position serviced by a different payroll

office at a time other than the beginning of the pay period or when the two agencies are on

different pay periods. Each payroll office (gaining and losing) is responsible for withholdings

and contributions for the actual time you occupied the position that it services.

Daily Rate

Compute a daily rate by multiplying the biweekly withholding and contribution rate by 26, then

dividing by 364.

Biweekly withholding* x 26÷ 364

* For Basic, the contribution withholding must also be computed. See examples below.

Note: The denominator is always 364, even during a leap year.

Basic Insurance

For Basic insurance, the daily withholding rate is $0.0107 and the daily Government contribution

rate is $0.0054 per $1,000 of coverage. The formula for determining the amount of withholdings

and contributions for which losing and gaining agencies are responsible is:

Daily rate x Coverage Amount ÷ $1,000 x Days on payroll

U.S. Office Of Personnel Management

Example

Marcia transfers to a different agency on the sixth day into a biweekly pay period. Her BIA is

$54,000. The losing agency is responsible for:

Withholding: $0.0107 x $54,000 ÷ $1,000 x 5 days = $2.89

Contribution: $0.0054 x $54,000 ÷ $1,000 x 5 days = $1.46

The gaining agency is responsible for:

Withholding: $0.0107 x $54,000 ÷ $1,000 x 9 days =$5.20

Contribution: $0.0054 x $54,000 ÷ $1,000 x 9 days =$2.62

Optional Insurance

The payroll office must compute a daily rate for Optional insurance coverage, using the same

formula as for Basic insurance. (See tables for the biweekly withholding rates for Option A,

Option B, and Option C.)

For Option A, the formula for determining the amount of withholding is:

Daily rate x Days on payroll

The formula for determining the amount of Option B withholdings is the same as for Basic

insurance:

Daily rate x Coverage Amount ÷ $1,000 x Days on payroll

For Option C, the formula for determining the amount of withholdings is:

Daily rate x Number of multiples x Days on payroll

Example

Marcia also has Option A, one multiple of Option B, and two multiples of Option C. She is 38

years old. The losing agency is responsible for withholding:

Option A: $0.0286 [$0.40 x 26 ÷ 364] x 5 days = $0.14

Option B: $0.0021 [$0.03 x 26 ÷ 364] x $52,000 ÷ $1,000 x 5 days = $0.55

Option C: $0.0207 [$0.29 x 26 ÷ 364] x 2 multiples x 5 days = $0.21

The gaining agency is responsible for withholding:

Option A: $0.0286 [$0.40 x 26 ÷ 364] x 9 days = $0.26

Option B: $0.0021 [$0.03 x 26 ÷ 364] x $52,000 ÷ $1,000 x 9 days = $0.98

Option C: $0.0207 [$0.29 x 26 ÷ 364] x 2 multiples x 9 days = $0.37

U.S. Office Of Personnel Management

Retiring Employees

For retiring employees, your employing office's responsibility for withholdings and contributions

depends on your age at the time of retirement.

Under Age 65 on the Starting Date of Annuity

If your annuity starts after the end of the pay period, your employing office will make full

withholdings and contributions for the entire pay period.

If your annuity starts before the end of the pay period, your employing office will make

withholdings and contributions through the day before the start of your annuity, using the Daily

Proration Rule.

See the CSRS/FERS Handbook section entitled “Retirement Eligibility” for the rules governing

the starting date of CSRS/FERS annuities.

Example

Nathaniel is age 60 and his annuity starts 8/3/12. The pay period begins on 7/23/12 and ends on

8/5/12. He will carry Basic and Option A into retirement. His BIA is $72,000. His employing

office will make withholdings and contributions for the period from 7/23/12 through 8/2/12.

Basic withholding: $0.0107 x $72,000 ÷ $1,000 x 11 days = $8.47

Basic contribution: $0.0054 x $72,000 ÷ $1,000 x 11 days = $4.28

Option A withholding: $0.4286 ($6.00 x 26 ÷364) x 11 days = $4.71

Age 65 or over on the Starting Date of Annuity

Your employing office's responsibility for withholdings and contributions will depend on your

post-65 election.

For Basic insurance, if you elect 75 Percent Reduction, your employing office will make

withholdings and contributions through the end of the pay period in which you separate for

retirement without any proration. If you elect 50 Percent Reduction or No Reduction, your

employing office will prorate the Basic withholdings and contributions based on the starting date

of your annuity, the same as for retiring employees under age 65.

For Option A, your employing office will make withholdings through the end of the pay period

in which you separate for retirement without any proration.

For Option B and Option C, if you elect Full Reduction, your employing office will make

employee withholdings through the end of the pay period in which you separate for retirement

without any proration. If you elect No Reduction for Option B or Option C, your employing

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office will make employee withholdings based on the starting date of your annuity, the same as

for retiring employees under age 65. Since you are over age 65 at time of retirement, you do not

receive a second opportunity to change your Option B and/or Option C reduction election(s).

This is your only opportunity to choose how your coverage will reduce.

Example

Natalie is age 67 and has elected to carry Basic insurance into retirement with No Reduction

and 3 multiples of Option B with Full Reduction. Her BIA is $68,000, and Option B coverage is

$198,000 ($66,000 X 3). Her annuity started 11/1/12; the pay period began on 10/29/12 and

ended on 11/11/12.

Natalie’s employing office made withholdings and contributions for the period from 10/29/12

through 10/31/12 for Basic insurance. Her employing office made withholdings through the end

of the pay period (11/11/12) for Option B coverage. She will continue to pay for No Reduction

Basic insurance. Her Option B coverage is free, but will reduce to $0. She will not receive a

second opportunity to change her Option B Full Reduction election.

DIRECT PREMIUM PAYMENTS

 When Your Pay Is Insufficient on an Ongoing Basis

 Sample Notice

 If You Choose to Terminate Coverage

 If You Choose to Continue Coverage

 What Are the Effects of a Cancellation?

 When Pay Becomes Large Enough for Premium Withholdings:

If You Chose Termination

If You Chose Direct Pay

When Your Pay Is Insufficient on an Ongoing Basis

Your employing office must give you a written notice (sample below) as soon as it determines

that your pay (or annuity or compensation) will be insufficient to cover the required withholdings

for at least six months. The notice will provide your current level of FEGLI coverage, the

biweekly cost of the FEGLI coverage and the choices you can make. If your employing office

cannot give you the notice directly, it must send the notice by first class mail.

You must choose either to terminate some or all of your FEGLI coverage or to continue your

coverage by making direct premium payments. You must make your choice and return the

completed notice to your employing office within 31 days after you receive the notice (45 days if

you live overseas). When your employing office mails your notice, it is considered to be

received five days after the date of the notice (19 days if you live overseas.)

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Exceptions:

 This does not apply to employees in a nonpay status.

 If you have assigned your coverage, your employing office must give the notice to your

assignee(s), instead of you.

U.S. Office Of Personnel Management

Sample Notice

FEDERAL EMPLOYEES' GROUP LIFE INSURANCE (FEGLI) OPTIONS

WHEN PAY IS INSUFFICIENT FOR WITHHOLDING PREMIUMS

Name of Insured Individual: _____________________________

Date: _____________________

You must respond with your election to continue within 31 days of this notice (45

days if you live overseas) or your FEGLI coverage will be terminated.

We have determined that your (salary/annuity/compensation) is not large enough

for withholding FEGLI premiums and will continue to be insufficient on an

ongoing basis. You are currently enrolled in Basic, Option A, and Option B.

The biweekly premium for Basic is $0.00, Option A $0.00, Option B $0.00, and

Option C $0.00.

You have three choices: To terminate all of your FEGLI coverage, to terminate

some of your FEGLI coverage, or to continue your FEGLI coverage by paying the

premiums directly on a current basis.

TERMINATION: If you choose to terminate your coverage (or if you don't

return this notice on time, and your coverage is terminated administratively), the

termination will take effect at the end of the last pay period for which premiums

were withheld. Your coverage will continue for an additional 31 days at no cost

to you. During those 31 days, you (or an individual having power of attorney for

you), will be eligible to convert to a nongroup policy. You have been given the

information necessary for you to convert.

You may terminate all of your FEGLI coverage or just a part of it. If you

terminate only a part of your coverage, the premiums for the remaining coverage

will be withheld from your (salary/annuity/compensation), if it is large enough to

do so. If your pay is still insufficient for the withholdings for the remaining

insurance, you must make direct payments, or that remaining coverage will

terminate.

When your salary again becomes sufficient for the premium withholdings, any

terminated coverage will be reinstated automatically. If you converted any of

your coverage, you must contact the insurance company to terminate the

conversion policy or coverage will not be reinstated when your

annuity/compensation again becomes sufficient for the premium withholdings.

CONTINUATION: If you choose to continue your FEGLI coverage, you must

pay the premiums directly. Your check (or money order) in the amount of

$__________ must be made payable to _Name of agency___. Include on the

check your name, Social Security number, (CSA/CSI number), a note that the

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payment is for “FEGLI premium,” and the (pay period/month) for which the

payment is being made. Mail to: [Agency Address_______________].

By choosing to continue your coverage and make direct premium payments, you

are agreeing that if you do not make the payments, your coverage will be

cancelled. If your coverage is cancelled for nonpayment, you will not have the

right to convert, and your coverage will not be reinstated if your salary eventually

becomes large enough for the premium withholdings.

Please check the appropriate space(s) below, sign the notice, and return it to your

employing office at ______________________________. If you have any

questions, contact _________________________ at ________________

(Insert name and phone number of employing office contact).

TO BE COMPLETED BY

[EMPLOYEE/ANNUITANT/COMPENSATIONER/ASSIGNEE]:

I have read this notice, and I understand my choices. I choose the following:

1. _____ I choose to terminate all my FEGLI coverage.

For employees: I understand that the coverage will be reinstated

automatically when my salary becomes sufficient for withholding the

premiums.

For annuitants/compensationers: I understand that my coverage will not

be reinstated when my annuity/compensation becomes sufficient for premium

withholdings.)

2. I choose to terminate only the following FEGLI coverage(s):

________ Option C (Show number of multiples [1-5] you want to

terminate)

________ Option A

________ Option B (Show number of multiples [1-5] you want to

terminate)

I understand that the premium for the coverage(s) that remain will be

withheld from my pay if it is sufficient for doing so; otherwise I must pay

my premiums directly on a current basis.

For employees: I understand that the terminated coverage will be

reinstated automatically when my salary becomes sufficient for

withholding the premiums.

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For annuitants/compensationers: I understand that the terminated

coverage will not be reinstated when my annuity/compensation becomes

sufficient for premium withholdings.)

3. _____ I choose to continue my FEGLI coverage by paying my premiums

directly. I understand that if I do not make the payments on a current

basis, my coverage will be cancelled (and will not be reinstated when my

salary becomes sufficient for withholding the premiums).

__________________ (Insured’s/Assignee’s signature) _________(Date)

(End of Notice)

U.S. Office Of Personnel Management

If You Choose to Terminate Coverage

You may choose to terminate some or all of your coverage. If you terminate enough coverage so

that your pay is sufficient for withholding the premiums for the rest, your salary withholdings

will continue. If you terminate some coverage but your pay is still not enough for the remaining

withholdings, you must make direct payments for the premiums for the remaining coverage.

You cannot have some of the premiums withheld and make direct payment for the rest.

If you do not return the notice making a choice within the required time frame, your employing

office will terminate administratively as much coverage as necessary to allow for premium

withholdings. If your pay is not sufficient for any premium withholding, all coverage will be

terminated. Your employing office will terminate coverage, according to the U.S. Treasury

Financial Manual, in the following order:

 The multiples of Option C; then

 Option A; then

 The multiples of Option B; then

 Basic insurance.

If you choose to terminate some or all of your FEGLI coverage, or if you do not return the notice

making a choice within the time limit, your coverage will terminate retroactive to the end of the

last pay period in which premiums were withheld from your pay. You will get the 31-day

extension of coverage and the right to convert.

Your employing office will prepare a memo indicating the reason for the termination and attach

it to proof of your current coverage, such as the most recent Life Insurance Election (SF 2817),

open season election form, or your scanned election in your file (if your agency uses electronic

files). Your employing office will give you the information necessary to convert your FEGLI

coverage.

This termination is not considered a break in the continuous coverage needed for employees to

continue FEGLI into retirement.

If You Choose to Continue Coverage

If you choose to continue your FEGLI coverage, you must agree to pay the premiums directly on

a current basis. You cannot have some of the premiums withheld and make direct payment for

the rest.

Your employing office will set up a system to collect the premiums.

You must make premium payments after each pay period in which you are covered, according to

the schedule set by your employing office. If your employing office does not receive your

payment by the due date, it will send you a notice stating that for your coverage to continue, you

must make payment within 31 days (60 days if you live overseas) after you receive the notice. If

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you do not make any further payments, your coverage will be cancelled retroactive to the end of

the pay period for which you last paid the premium.

If, for reasons beyond your control, you are unable to pay your premium within 30 days of

receiving the past due notice (45 days if living overseas), you may ask your employing office to

reinstate your coverage. You must make your request in writing within 60 days from the

cancellation date and must include documentation of the reasons. If your employing office

grants your request, your coverage will be reinstated retroactive to the cancellation date, and you

must pay premiums back to that date. If your request is denied, you may ask your employing

office to reconsider its decision.

What Are the Effects of a Cancellation?

When your coverage is cancelled because you did not pay your premiums:

 You do not get the 31-day extension of coverage or the right to convert;

 It is considered a break in the continuous coverage needed to continue FEGLI coverage

into retirement; and

 Your FEGLI coverage will not be reinstated when your pay becomes sufficient to make

the withholdings.

What Happens When My Pay Increases Enough for Premium Withholdings?

If You Previously Chose Termination

If you are an employee and you chose termination or your life insurance is terminated because

you did not return the required notice, your FEGLI coverage is automatically reinstated when

your salary becomes sufficient to cover the withholdings.

Your employing office must prepare a memo noting the reinstatement of your coverage and

attach it to proof of your current coverage, such as the most recent Life Insurance Election (SF

2817), open season election form, or your scanned election in your file (if your agency uses

electronic files). If you converted any of your coverage, you must terminate the conversion

policy.

If you are insured as an annuitant or compensationer, your terminated coverage will not be

reinstated when your annuity or compensation becomes sufficient to cover the withholdings.

If You Previously Chose Direct Pay

If you are an employee who chose direct pay and made the premium payments, your employing

office must start withholding premiums from your salary as soon as your pay becomes sufficient.

If your employing office has contracted with another entity to handle direct premium payments,

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your employing office must notify that entity that premiums are again being withheld from your

pay, so that your direct pay account can be closed out.

If you are insured as an annuitant or compensationer and you are making direct premium

payments, you must continue to make direct premium payments, even if your annuity or

compensation becomes sufficient to cover the withholdings.

If you chose direct pay but you did not make the premium payments, your employing office or

retirement system will notify you. You must make the required payment within 31 days (60 days

if living overseas) after receiving the notice. If you fail to make the overdue payment your

coverage will be cancelled for nonpayment. The coverage remains cancelled even when your

pay becomes sufficient to cover the withholdings.

REMITTANCE TO OPM

 When to Remit

When to Remit

An employing office remits (sends) life insurance withholdings and contributions to OPM on the

same date it pays its payroll.

OPM will credit the total amount reported for life insurance to the Employees' Life Insurance

Fund.

ADJUSTING ERRORS

 Errors in Withholdings and Contributions

 Errors Involving Current Employees – Overdeductions

 Errors Involving Current Employees – Underdeductions

 Errors Involving Separated Employees

 Errors Involving Annuitants and Compensationers

Errors in Withholdings and Contributions

U.S. Office Of Personnel Management

Payroll offices must adjust errors in withholdings and contributions on a subsequent payroll and

include the adjustments in a subsequent withholdings and contributions report.

Your employing office must ensure that your individual payroll record shows not only the

regular (current) deductions as life insurance withholdings, but also the adjustments.

There are two types of errors in withholding:

 Overdeductions, in which your payroll office withholds too much money from your

salary, annuity, or compensation; and

 Underdeductions, in which your payroll office does not withhold enough money.

Errors Involving Current Employees – Overdeductions

When too much money has been withheld from your pay – or when withholdings have been

made when you are ineligible or have waived coverage – your payroll office must adjust the

withholdings on a subsequent payroll on which your name appears. This adjustment

automatically corrects any excess agency contribution.

Your payroll office must refund the overpaid premiums to you. Exception: If the overdeduction

occurred because you were given erroneous coverage, the premiums will not be refunded if

incontestability applies.

Errors Involving Current Employees – Underdeductions

When too little money – or no money – has been withheld from your pay, your payroll office

must remit the payment to OPM no later than 60 calendar days after the date it determines the

amount of the underdeduction. This payment must be made to OPM regardless of whether or

when your employing office recovers the underdeduction from you. The payment is sent to

OPM in the same manner as the biweekly premiums.

The underdeduction represents an overpayment of salary to you. You had coverage which would

have been payable if you had died. Your employing office must determine whether to waive

collection of the overpayment, in accordance with 5 U.S.C. subsections 8707(d), 8714b(d)(2),

8714a(d)(2), and 8714c(d)(2), as implemented by Part 870 of 5 CFR, Subpart D. This provides

that an employing office may waive recovery of the overpayment if, in its judgment, you are

without fault and recovery would be against equity and good conscience. (If your employing

office is excluded from the above provisions, it can use any applicable authority to waive the

collection.)

Even if your employing office waives the collection of the unpaid deductions, it is still required

to make the premium payment, along with any applicable Government contributions, out of its

own funds.

U.S. Office Of Personnel Management

Example # 1

Angie was a new employee hired into a FEGLI-eligible position. She did not submit a SF 2817

“Life Insurance Election”. She is automatically eligible, however, for Basic, but her employing

agency erroneously failed to enroll her or to withhold premiums.

Several years later she dies, and the agency discovers the error. The agency should certify the

Basic insurance to OFEGLI and recover the premiums from her last pay period of pay, her lump

sum annual leave, or her estate.

Example # 2

Dave has Basic and Option A coverage. During an open season he newly elects Basic and 5X

Option B. Seven years later his employing agency conducts an audit of his coverage and

discovers they did not process the Option A cancellation or the newly elected 5X Option B

coverage.

Dave has Basic, Option A, and 5X Option B. He has Option A because incontestability applies;

he had erroneous Option A coverage for which he continued to pay premiums. He also has 5X

Option B because he validly elected the coverage seven years ago. His agency should calculate

the amount of the Option B withholding and send it to OPM within 60 days of the discovery of

the error. The agency then can offer due process rights to Dave before beginning collection of

the retroactive Option B premiums from his pay. Option A also can be cancelled, but only

prospectively, not retroactively.

Errors Involving Separated Employees

When an adjustment in withholdings is necessary after you have separated from service, your

payroll office must make the adjustment in your final pay (or payment to your beneficiary or

estate).

Errors Involving Annuitants and Compensationers

The procedures are the same for annuitants and compensationers as for active employees. The

payroll office that must adjust the error – and refund overdeductions and pay underdeductions –

is either the retirement system paying your annuity or the Office of Workers’ Compensation

Programs.

HISTORICAL INFORMATION

 Premium History

 Basic Insurance Premiums for Annuitants and Compensationers

 Direct Premium Payments

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 Moving to a New Age Band

 Judges

 Certain Premiums for Postal Executives

 Current Rates

Premium History

Here is a link to the FEGLI Program’s premium history (http://www.opm.gov/healthcare-

insurance/life-insurance/program-information/#url=Historical-Rates)

Basic Insurance Premiums for Annuitants and Compensationers

Employees who retired or started receiving workers’ compensation before January 1, 1990, and

who elected 75 Percent Reduction (or have 75 % Reduction by default) pay no premiums for

Basic insurance.

Employees who retired or started receiving compensation before January 1, 1990, and who

elected 50 Percent Reduction or No Reduction do not pay “regular” premiums for Basic

insurance. However, they do pay the extra premiums for the 50 Percent or No Reduction

election.

Employees who retire or start receiving compensation on or after January 1, 1990, continue to

pay regular premiums for Basic insurance until age 65, regardless of what post-65 reduction

election they make.

Direct Premium Payments

Direct premium payments were allowed for annuitants under the Federal Employees Retirement

System (FERS) starting in January 1988. In October 1998 direct payment was extended to

employees, compensationers, and all other annuitants under other retirement systems whose

salary, compensation, or annuity is too low to make withholdings.

Moving to a New Age Band

Prior to April 1999, when individuals had a birthday that moved them to another age band, the

premiums for the new age band did not go into effect until the January following their birthday.

Effective April 24, 1999, and to conform with generally accepted private industry practice, the

premiums for the new age band become effective the pay period following the one in which the

birthday occurs.

Judges

U.S. Office Of Personnel Management

Public Law 106-113, enacted November 29, 1999, requires the Judiciary to pay any premium

increases imposed after April 24, 1999, on behalf of Justices and judges of the United States

aged 65 or over.

Certain Premiums for Postal Executives

Option A-Standard became free for Postal employees entering the Postal Career Executive

Service (PCES) effective June 2, 1979.

Current Rates

The current FEGLI premiums became effective January 1, 2012. For a history of rates and

effective dates, see http://www.opm.gov/healthcare-insurance/life-insurance/program-

information/#url=Historical-Rates

U.S. Office Of Personnel Management

COVERAGE

 Introduction

 Basic Insurance: Automatic Coverage

 Optional Insurance: Initial Election

 Waiver/Cancellation (Reduction) of Insurance

 Canceling a Waiver and Electing Coverage

 Getting a Physical Exam

 Life Events

 Open Seasons

 Breaks in Service

 Employing Office Responsibilities

 Nonpay Status

 Incontestability

 Correction of Errors

 Historical Information

INTRODUCTION

FEGLI coverage is group term life insurance coverage that is payable regardless of the cause

or location of death. If you are enrolled, it covers you 24/7, whether or not you are at work.

FEGLI also includes an Extra Benefit for enrollees under age 45, and Accidental Death and

Dismemberment coverage for employees, which, if payable (there are some exclusions), is

paid in addition to Basic and Optional coverage.

BASIC INSURANCE: AUTOMATIC COVERAGE

 Acquiring Basic Insurance

 Effective Date of Basic Insurance

o New Employees and Newly Eligible Employees

o Transferred Employees

o Employees Who Return to Pay and Duty Status after More Than 12 Months in

Nonpay Status

Acquiring Basic Insurance

Basic insurance is automatic. As a Federal employee, you get Basic insurance when you are

appointed or transferred to a FEGLI eligible position, unless you waive coverage (see

“Employees Excluded from Coverage” ).

U.S. Office Of Personnel Management

Effective Date of Basic Insurance

New Employees and Newly Eligible Employees

Coverage is effective on the first day you are in pay and duty status (unless you have a waiver of

coverage from previous employment that still remains in effect); the effective date is not tied in

to the start of a pay period. Exception: If you serve in cooperation with a non-Federal agency,

and you are paid in whole or in part from non-Federal funds, OPM sets the effective date for

your Basic insurance; this date must be part of an agreement between OPM and the non-Federal

agency.

Transferred Employees

Coverage is effective on the first day you are in pay and duty status in the new position (unless

you have a previous waiver that still remains in effect); the effective date is not bound to the start

of a pay period.

Transferring immediately to a new position does not allow you to elect new coverage, and is not

a qualifying life event.

Employees Who Return to Pay and Duty Status after More Than 12 Months in

Nonpay Status

The coverage you lost after 12 months in nonpay status is automatically restored on the day you

return to pay and duty status. You must meet both the pay and the duty status requirements. For

example, donated leave is pay only and will not restore your FEGLI coverage. Exception: Your

coverage will not be restored if you return to a position that is excluded from FEGLI coverage by

law or regulation.

Note: Returning to pay and duty status after more than 12 months in nonpay status does not

allow you to elect new coverage. This is not a qualifying life event.

OPTIONAL INSURANCE: INITIAL ELECTION

 Insurance Not Automatic

 Who Can Elect Optional Insurance?

 How Long Does an Employee Have to Make an Election?

 How Does an Employee Make an Election?

 Belated Election

 Effective Date of Optional Insurance

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Insurance Not Automatic

Unlike Basic insurance, Optional insurance is not automatic; you must elect it.

Who Can Elect Optional Insurance?

If you have Basic insurance you may elect Optional insurance, as long as you do not have a

previous waiver of Optional insurance that is still in effect.

You cannot elect Optional insurance if you do not have (or elect at the same time) Basic

insurance.

How Long Does an Employee Have to Make an Election?

You must make the election within 60 days after becoming eligible for coverage. You can

change your election anytime within this 60-day period, but the last election you submit within

this time period governs.

How Does an Employee Make an Election?

To elect Optional insurance, you must complete the Life Insurance Election (SF 2817-or its

electronic equivalent) stating which type(s) of Optional insurance you want. You elect coverage

on the form by signing for the coverage that you want. Agencies now have the capability to

allow electronic elections. Any type of coverage or multiple not elected is considered waived.

If you do not make an election within 60 days after becoming eligible, you are considered to

have waived all Optional insurance.

Belated Election

If you do not elect Optional insurance within the 60-day time frame, your employing office can

accept a belated election if you request it and your employing office determines, within six

months after you first became eligible, that you did not make the election on time because of

reasons beyond your control.

If these conditions are met, your employing office will notify you. You then have 60 days from

the date of the notification in which to make the election. The insurance is retroactive to the 1st

day of the 1st pay period beginning after the date you became eligible (or after April 1, 1981,

whichever is later), if you were in pay and duty status that day. If you were not in pay and duty

status that day, the coverage becomes effective the 1st day after the date you returned to pay and

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duty status. You must pay the full cost of the Optional insurance from that date for the time that

you are in pay status (or retired or receiving compensation with unreduced Optional insurance).

If your employing office accepts a belated election, it must record on the Life Insurance Election

(SF 2817-or its electronic equivalent) that it determined you were unable to make the election on

time for reasons beyond your control and give the date you were notified of the determination.

If six months or more have passed since you became eligible, your employing office does not

have the authority to accept a belated election.

Effective Date of Optional Insurance

Timely Elections

Optional insurance is effective the day your employing office receives your election, if you are in

pay and duty status that day. If you are not in pay and duty status on the day your employing

office receives your election, Optional insurance becomes effective the first day you return to

pay and duty status. The effective date is not bound to the start of a pay period although you will

have to pay premiums for the entire pay period in which your coverage becomes effective.

Belated Elections

A belated election of Optional insurance is effective retroactive to the start of the first pay period

that follows the one in which you first became eligible, if you were in pay and duty status on that

date. If you were not in pay and duty status on that date, Optional insurance becomes effective

the first day you returned to pay and duty status after that date. You must pay the back

premiums.

WAIVER/CANCELLATION (REDUCTION) OF

INSURANCE

 Waiving Basic Insurance as a New Employee

 Waiving Optional Insurance as a New Employee

 Canceling Basic Insurance

 Canceling (Reducing) Optional Insurance

 How Long Does a Waiver Last?

Waiving Basic Insurance as a New Employee

If you are a new employee and do not want Basic insurance, you must waive the insurance by

completing the Life Insurance Election (SF 2817-or its electronic equivalent) and filing it with

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your employing office. If you do not complete the SF 2817 waiving coverage, you will

automatically get Basic insurance.

If you waive Basic insurance before the end of your first pay period, no withholdings will be

made from your first paycheck. When you waive Basic insurance, you automatically waive

Optional insurance.

If you waive coverage before the end of your first pay period and then decide you want it, you

may complete a new SF 2817, as long as it is still within your 60-day time frame for initially

electing coverage. Your employing office will void your previous waiver and note on the waiver

that it is superseded by the new election. The last SF 2817 that you submit to your employing

office within that first 60-day period of eligibility is the election that governs.

If you change your mind about waiving Basic insurance after the 60-day initial election period is

over, see “Canceling a Waiver and Electing Coverage”.

Waiving Optional Insurance as a New Employee

If you are a new employee and do not want any Optional insurance, you do not need to do

anything. By not electing Optional insurance, you will waive Optional insurance and only have

Basic insurance. If you wish, you may complete the Life Insurance Election (SF 2817) signing

for Basic insurance only, although that is not required. The absence of a positive election means

you have waived Optional insurance.

If you want only some Optional insurance, complete the SF 2817 signing only for the coverage

you want. Any coverage not elected is considered waived.

If you do not elect a particular type of Optional insurance, you are considered to have waived it.

If you elect fewer than 5 multiples of Option B or Option C coverage, you are considered to have

waived the multiples not elected.

Example

Otis is a new employee, and he elects Basic, Option A and two multiples of Option B coverage.

By doing so, he is waiving the remaining three multiples of Option B coverage and all multiples

of Option C coverage.

Canceling Basic Insurance

Unless you have assigned your insurance, you may cancel your Basic insurance at any time by

completing the Life Insurance Election (SF 2817 – or its electronic equivalent) and filing it with

your employing office. When you cancel Basic insurance, you automatically cancel all Optional

insurance.

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Note: If you are an annuitant or a compensationer who has separated or completed 12 months in

nonpay status, you do not use the SF 2817 to cancel coverage. If you want to cancel coverage,

you must send a letter with your signature to:

Office of Personnel Management

Post-Retirement Section

Retirement Operations Center

P.O. Box 45

Boyers, PA 16017-0045.

Any cancellation or reduction of life insurance must be in writing and have an original signature

by the insured retiree. Be sure to include your retirement claim number (CSA or CSI number if

you are a compensationer) or social security number and specify what action you want taken.

Please note you cannot increase your coverage after retirement, or reinstate any coverage that

you cancel.

Unless assigned, if you elected 50 Percent or No Reduction for your Basic life insurance, you

may cancel this additional coverage at any time. You may only change to the 75 Percent

Reduction, or cancel Basic altogether.

The cancellation is effective, and all insurance stops, at the end of the pay period in which you

properly file the waiver. For retirees, a month is considered a pay period. You continue to have

the coverage through the pay period in which you file the waiver and must pay premiums for that

pay period. You will not receive a refund for premiums withheld prior to the effective date of

cancellation.

Canceling (Reducing) Optional Insurance

You may cancel any or all types of Optional insurance at any time by completing the Life

Insurance Election (SF 2817-or its electronic equivalent) and signing on the line for whatever

coverage you want to keep. Reducing the number of multiples of Option B or Option C is a

cancellation of those multiples. Exception: If you have assigned your insurance (see

“Assignment”), you cannot cancel your Option A coverage and you cannot cancel your Option B

coverage or reduce the number of multiples you have.

Note: If you are an annuitant or a compensationer who has separated or completed 12 months in

nonpay status, you do not use the SF 2817 to cancel coverage. If you want to cancel coverage,

you must send a letter with your signature to:

Office of Personnel Management

Post-Retirement Section

Retirement Operations Center

P.O. Box 45

Boyers, PA 16017-0045.

U.S. Office Of Personnel Management

Any cancellation or reduction of life insurance must be in writing and have an original signature

by the insured retiree. Be sure to include your retirement claim number (CSA number or CSI

number if you are a compensationer) or social security number and specify what action you want

taken. Please note you cannot increase your coverage after retirement, or reinstate any coverage

that you cancel.

If you have Option A-Standard insurance, you may cancel it at any time. You may reduce or

cancel the amount of your Option B-Additional insurance and Option C- Family insurance at any

time.

Canceling Optional insurance has no effect on Basic insurance.

Your cancellation is effective, and Optional insurance stops, at the end of the pay period in

which you properly file the waiver with your employing office. You continue to have the

coverage through the pay period in which you file the waiver and must pay premiums for that

pay period. You will not receive a refund for premiums withheld prior to the effective date of

cancellation. Your new, reduced level of coverage is effective the first day of the pay period

following the one in which you file your waiver.

Exception: If you cancel Option C because you no longer have any eligible family members, the

effective date is retroactive to the end of the pay period in which there stopped being any eligible

family members; your employing office or retirement system must refund your Option C

premiums retroactive to that effective date. You may need to provide documentation to your

employing office, such as a divorce decree or birth certificate, to show when you stopped having

any remaining eligible family members.

Example 1

Olivia has Basic, Option A, and three multiples of Option B coverage. She wants to cancel her

Option A coverage and reduce her Option B coverage to 1 multiple. On her SF 2817 she elects

Basic and one multiple of Option B; she turns the form in to her personnel office 9/9/12. This

action cancels her Option A coverage and two multiples of her Option B coverage. Olivia’s old

level of coverage continues through the pay period ending 9/21/12, and she must pay premiums

through that pay period. Her new level of coverage is effective 9/22/12, and her pay for that pay

period will reflect the reduced level of coverage.

Example 2

Peter is an annuitant with Basic insurance, four multiples of Option B, and one multiple of

Option C. Peter decides he wants to cancel three of his Option B multiples. He sends a letter to

OPM’s Retirement Operations Center, and they receive it 7/12/12. Annuitants pay periods are

monthly. Peter’s old coverage continues through the end of July. His new lower level of

coverage is effective 8/1/12, and the premiums will be reflected in his 9/1/12 annuity payment,

which is payment of his annuity for the month of August.

U.S. Office Of Personnel Management

Example 3

Pam is divorced and has Basic insurance, five multiples of Option B, and 5 multiples of Option

C. Her youngest child turned 22 on 3/29/12, but she forgot to cancel her Option C coverage.

On 10/21/12 Pam notified her personnel office that she no longer had any eligible family

members and wanted to cancel her Option C coverage. Her cancellation will be made

retroactive to 4/6/12, the end of the last pay period in which she had an eligible family member.

The new coverage (Basic insurance plus five multiples of Option B) will be effective 4/7/12, and

Pam’s agency will refund the Option C premiums retroactive to that date.

How Long Does a Waiver Last?

Your waiver lasts until either:

 You cancel the waiver and elect coverage; or

 You separate from service and remain separated for at least 180 days.

Exception: Effective July 24, 1974, if you are employed by the U.S. Postal Service in a covered

position, any waiver of Basic insurance is automatically cancelled, even it you have not been

separated from your previous position for at least 180 days. You will automatically get Basic

insurance, unless you waive it again. Any waiver of Optional insurance remains in effect, unless

you have been separated from your previous position for at least 180 days.

CANCELING A WAIVER AND ELECTING

COVERAGE

 How to Cancel a Waiver

o Basic Insurance

o Option A

o Option B

o Option C

o Belated Election

How to Cancel a Waiver

Only employees may cancel a waiver and elect insurance. If you are insured as an annuitant or

compensationer, you cannot cancel your waiver.

Exceptions:

U.S. Office Of Personnel Management

 If you are a reemployed annuitant, you may cancel a waiver and elect coverage as long as

there has been a 180-day break between your retirement and reemployment.

 If you are a compensationer within the first 12 months of nonpay status, you may cancel

a waiver and elect coverage. However, except for an Option C open enrollment election

or Option C life event election, you must return to pay and duty status at your agency

before any newly elected coverage can become effective.

Here is a chart showing the different ways an employee may cancel a waiver:

Type of

Coverage

Open

Season

Providing

Satisfactory

Medical

Information

Life Event

Basic

as announced by

OPM

yes

Option A

as announced by

OPM

yes

Option B

as announced by

OPM

yes

Option C

as announced by

OPM

yes

Basic Insurance

Employees may cancel a waiver of Basic insurance:

 If one year has passed since the date of the waiver, and you provide satisfactory medical

information to prove insurability; or

 By submitting an election before or within 60 days after experiencing a qualifying life

event; or

 During an open season.

Exception: Effective October 30, 2000, under Public Law 106-398 Department of Defense

employees who are designated emergency essential employees under section 1580 of title 10

may cancel a waiver of Basic insurance within 60 days of being so designated, without getting a

physical exam. These employees cannot elect Optional insurance under this provision.

U.S. Office Of Personnel Management

Effective October 14, 2008, under Public Law 110-417 Department of Defense employees who

are designated emergency essential under section 1580 of title 10, as well as civilian employees

deployed in support of a contingency operation as defined by section 101(a)(13) of title 10, may

elect Option A and Option B coverage. Election of Optional insurance must be made within 60

days of being designated emergency essential or within 60 days after notification of deployment

in support of a contingency operation.

Option A

Employees may cancel a waiver of Option A:

 By providing satisfactory medical information to prove insurability; or

 By submitting an election before or within 60 days after experiencing a qualifying life

event; or

 During an open season.

Option B

Employees may cancel a waiver of Option B:

 By providing satisfactory medical information to prove insurability;

 By submitting an election before or within 60 days after experiencing a qualifying life

event; or

 During an open season.

Option C

Employees may cancel a waiver of Option C:

 By submitting an election before or within 60 days after experiencing a qualifying life

event; or

 During an open season.

Belated Election

If you do not elect Basic or Optional insurance within the 60-day time frame, your employing

office can accept a belated election if you request it and your employing office determines,

within six months after you first became eligible, that you did not make the election on time

because of reasons beyond your control.

If these conditions are met, your employing office will notify you. You then have a 60-day

period from the date of the notification in which to make the election. If your employing office

accepts a belated election, the insurance is retroactive to the first pay period beginning after the

date you became eligible, if you are in pay and duty status that day. If you were not in pay status

that day, the coverage becomes effective the first day after you return to return to pay and duty

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status. You are responsible for paying the full cost of all insurance premiums from that day for

the time that you are in pay status.

If your employing office accepts a belated election, it must record on the Life Insurance Election

(SF 2817 – or its electronic equivalent) that it determined you were unable to make the election

on time for reasons beyond your control and give the date you were notified of the

determination.

If six months or more have passed since you became eligible, your employing office does not

have the authority to accept a belated election.

PROVIDING SATISFACTORY MEDICAL

INFORMATION

 Elections Allowed

 Time Limit

 Process

 Effective Date of Insurance

 If Coverage Is Denied

Elections Allowed

Employees may cancel a waiver of Basic insurance, Option A, and Option B by providing

satisfactory medical information to prove insurability. You cannot cancel a waiver of Option C

this way.

Time Limit

You must wait at least one year after the effective date of your last waiver of coverage before

you can cancel the waiver by providing satisfactory medical information.

Process

The form to use to request insurance by providing satisfactory medical information is Request for

Insurance (SF 2822). This form is a combination:

 Request to cancel a waiver;

 Medical certificate; and

 Authorization for insurance

U.S. Office Of Personnel Management

You must complete and sign Part C of the SF 2822 and have your agency complete Part A. Your

agency needs to complete their part before you go to your physician (or other healthcare

provider). You then take the form to your physician (or other healthcare provider); he/she will

examine you, complete Part B, and send the form to the Office of Federal Employees’ Group

Life Insurance (OFEGLI). You are responsible for any fee charged for the medical examination

and certification.

OFEGLI must receive the form within 60 days of the date of the medical examination. OFEGLI

will review the SF 2822 and return it to your employing office either approving or denying

coverage. It is important that your agency provides a fax number and email address on the SF

2822 to expedite the response from OFEGLI. Your employing office will notify you of

OFEGLI’s decision and file the returned SF 2822 in your Official Personnel Folder (or its

equivalent).

It is important that your employing office notify you of OFEGLI's decision promptly. You have

60 days from the date of OFEGLI's approval to cancel your waiver of Option A and/or Option B,

regardless of when your employing office notifies you of OFEGLI's decision. In addition, if you

know what coverage you want, you can complete and turn in the SF 2817 to your employing

office when you have them complete the SF 2822.

You cannot elect Option C or increase your Option C multiples by providing medical

information. However, even if you previously elected Option C - Family and are changing

other Optional coverage, you must sign for Option C again to keep it. If you do not sign for

it, you have waived/cancelled it.

Example

Suppose you already have Basic and three multiples of Option C and you want to add Option A.

You complete the SF 2822 and provide medical information, and OFEGLI approves your

request. Then you complete the SF 2817. You must sign for Basic, Option A, and ALSO three

multiples of Option C even though you're not newly electing Option C. If you don't sign for your

current Option C coverage again, you have waived/cancelled it.

If it has been more than two weeks since your doctor sent the SF 2822 to OFEGLI, you or your

employing office may follow up with OFEGLI by calling 1-800-633-4542.

Effective Date of Insurance

If you are canceling your waiver of Basic insurance and OFEGLI approves coverage, Basic

insurance becomes effective on your first day in pay and duty status on the date of OFEGLI's

approval, as shown on the Request for Insurance (SF 2822). Withholdings begin with that pay

period. You do not need to complete another form if Basic insurance is all that you want. If you

want to cancel your waiver of Option A and/or Option B coverage and OFEGLI approves

coverage, you must submit the Life Insurance Election (SF 2817) to your employing office no

later than 60 days following the date of OFEGLI's approval, regardless of when your employing

office informs you of OFEGLI's approval. You can submit the election earlier, in conjunction

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with your SF 2822, so that it is already on file if OFEGLI approves your request. You may elect

Option A and up to five multiples of Option B. Your Optional insurance is effective the first day

you meet these two conditions, but no earlier than the date of OFEGLI’s approval:

 Your employing office has received your SF 2817 electing coverage; and

 You are in pay and duty status

If you are not in pay and duty status within 60 days after the date of OFEGLI's approval, the

approval is revoked automatically and you cannot elect more coverage. You will then have to

start the process over again.

Note: Although you cannot elect Option C by providing satisfactory medical information, if you

already have this coverage and want to keep it, you must sign for it on the SF 2817 when you

make your election of Option A and/or Option B following OFEGLI’s approval. If you do not

sign for your current Option C coverage, you will cancel it.

Example 1

Sharon waived all coverage when she was first employed. Three years later she completes the

SF 2822 and gets a physical exam. OFEGLI approves Sharon’s request for insurance on

10/24/12 and notifies her personnel office that day. Sharon’s Basic insurance is effective

10/24/12.

On 11/9/12 Sharon submits the SF 2817 electing Basic insurance and two multiples of Option B.

Sharon’s Optional insurance is effective 11/9/12, the same day. That date is also the effective

date of her waiver of Option A and the three remaining multiples of Option B. If Sharon later

decides she wants to increase her Option B coverage or add Option A, she must wait until

11/9/13 before submitting another SF 2822.

Example 2

Roger has Basic insurance and five multiples of Option C. He wants to add Option B coverage.

Roger gets a physical exam, and OFEGLI approves his request for insurance on 11/8/12. On

11/12/12 Roger completes an SF 2817 electing Basic insurance and three multiples of Option B;

he does not sign for Option C.

Roger’s Option B coverage is effective 11/12/12; his pay for the pay period ending 11/16/12 will

include premiums for Basic, Option B, and Option C. However, by not signing for Option C on

his SF 2817, he has cancelled the coverage. Roger’s Option C continued through the pay period

ending 11/16/12. The pay period beginning 11/17/12 will have his new level of coverage: Basic

insurance and three multiples of Option B.

Example 3

Rosa has Basic insurance only and wants to add Option A and Option B. She completes an

U.S. Office Of Personnel Management

SF 2822 and is examined by her physician. One week later Rosa is in an automobile accident

and is on sick leave for the next two months. OFEGLI approves Rosa’s request for insurance the

week after her accident. However, since Rosa does not return to pay and duty status for more

than 60 days after OFEGLI’s approval, the approval expires, and Rosa cannot make an election

based on her examination. If she still wishes to add Option A and Option B, she will have to start

over.

If Coverage Is Denied

If OFEGLI denies coverage, you cannot appeal the decision to OPM or the Merit Systems

Protection Board. For learning more about the denial, you or your physician can write OFEGLI

at P.O. Box 6080, Scranton PA 18505-6080. The address for overnight deliveries is OFEGLI,

123 Wyoming Avenue 3

Floor, Scranton, PA 18503.

LIFE EVENTS

 What Are Life Events under FEGLI?

 How Many Multiples of Option B Can an Employee Elect Due to a Life Event?

 How Many Multiples of Option C Can an Employee Elect Due to a Life Event?

 How Long Does an Employee Have to Make the Election?

 Effective Date of Option B Elected with a Life Event

o If You Turn in Your SF 2817 before the Event

o If You Turn in Your SF 2817 on or after the Date of the Event

 Effective Date of Option C Elected with a Life Event

o If You Turn in Your SF 2817 before the Event

o If You Turn in Your SF 2817 on or after the Date of the Event

o If Your Life Event Is Acquiring a Foster Child

 Extensions to the Time Limit for Making a Life Event Election

What Are Life Events under FEGLI?

FEGLI life events are:

 Marriage

 Divorce

 Death of a spouse and

 Acquiring an eligible child

If an employee has a life event under FEGLI, he/she may elect Basic insurance and any and all

Optional insurance coverage, including up to the maximum number of multiples of Option B

and/or Option C coverage.

U.S. Office Of Personnel Management

Notes:

 An employee may elect the maximum number of Option B and Option C multiples (five

multiples for each type of coverage)

 If an employee’s life event is acquiring a child over age 22, the child must meet the

requirements of being incapable of self-support

How Many Multiples of Option B Can an Employee Elect Due to a Life

Event?

 An employee electing or increasing Option B may elect any number of multiples up to

the maximum of five.

Example 1

Sebastian entered on duty in 1995 and elected Basic insurance and one multiple of Option B. He

got married in 1998 and his wife had a baby in 2001, but he did not make any elections due to

those life events. In January 2011 Sebastian’s wife had another baby, and Sebastian wanted to

increase his Option B coverage. He can elect any number of multiples of Option B, as long as

the total number of multiples does not exceed five. Because he already had one multiple of

Option B, he can elect up to four more multiples.

Example 2

Sabrina has Basic insurance only. On 10/01/13 she married her wife Tammy, who has a five-

year-old child who lives with them. Sabrina may elect up to five multiples of Option B with the

life event.

Example 3

Trevor has Basic insurance only. On 12/01/12 he married a woman with a 5-year-old child; the

child does not live with Trevor and his new wife. Trevor may elect up to five multiples of Option

B with the life event.

How Many Multiples of Option C Can an Employee Elect Due to a Life

Event?

An employee electing or increasing Option C may elect any number of multiples up to the

maximum of five.

How Long Does an Employee Have to Make an Election?

U.S. Office Of Personnel Management

The time limit for making a life event election is 60 days after the date of the qualifying event.

You must file the election with your employing office using the Life Insurance Election

(SF 2817-or is electronic equivalent) along with proof of the event.

You can either file the election before the event, to be followed up with the necessary proof

within 60 days after the event has taken place, or you can file the election and provide the

necessary proof no later than 60 days after the date of the event.

Proof of an event may include a marriage certificate, birth or adoption records, divorce decree, a

foster child certification (affidavit) or death certificate. Your employing office determines what

is acceptable proof of the life event, not OPM or OFEGLI. For Option C elections when a foster

child is acquired, the “proof” is the foster child certification, and the 60-day time limit starts on

the day you sign the certification.

Effective June 26, 2013, a same-sex spouse of a valid marriage is recognized as a family member

for benefits under the FEGLI Program. Legal same-sex marriages entered into following this

decision will be treated in the same manner as opposite-sex marriages, regardless of an

employee’s or annuitant’s state of residency. This includes legal international same-sex

marriages granted in foreign countries that authorize such marriages, regardless of an employee’s

or annuitant’s state of residency. For employees affected by this change in the law, they have 60

days from June 26, 2013 to make their elections, regardless of the date of the marriage if the

marriage took place prior to June 26, 2013. For same-sex marriages that take place after this

date, the employee has 60 days to elect coverage.

Effective Date of Option B Elected with a Life Event

There are pay and duty status requirements before Option B can become effective.

Option B and Option C elected with the same life event may have different effective dates.

If You Turn in Your SF 2817 before the Event

If you submit the SF 2817 before the event, the effective date for Option B is the date of event, if

you are in pay and duty status on that day. If you are not in pay and duty status that day, Option

B becomes effective the first day you return to pay and duty status, after the date of the event.

If You Turn in Your SF 2817 on or after the Date of the Event

If you submit the SF 2817 on or within 60 days after the date of the event, the effective date is

the date your personnel office receives the form, if you are in pay and duty status that day. If

you are not in pay and duty status that day, Option B becomes effective the first day you return

to pay and duty status.

U.S. Office Of Personnel Management

Example 1

Tiffany had Basic insurance only. She had a baby on 7/20/12 and went on maternity leave until

10/31/12. On 8/30/12, while she was on leave, she completed an SF 2817 electing one multiple

of Option B and submitted it to her personnel office. She submitted the SF 2817 within the 60-

day time frame, so it is a valid election. However, the coverage could not become effective until

she returned to pay and duty status on 10/31/12.

Example 2

Ulysses had Basic insurance and one multiple of Option B. He got married to John on 7/14/13.

He submitted his SF 2817 electing another multiple of Option B on 6/26/13. Following his

wedding on 7/14/13, Ulysses took annual leave and went on a two-week honeymoon. He

returned to the office 7/29/13. His new Option B coverage became effective 7/29/13, the day he

returned to work in a pay and duty status.

Effective Date of Option C Elected with a Life Event

There are no pay and duty status requirements for Option C to become effective when elected

due to a life event.

Option B and Option C elected with the same life event may have different effective dates.

If You Turn in Your SF 2817 before the Event

If you submit your SF 2817 before the event, Option C is effective on the date of the event,

regardless of whether you are in pay and duty status.

Example

When Ulysses (see example above) submitted his SF 2817 on 6/26/13, in addition to electing one

multiple of Option B, he elected five multiples of Option C. Although his Option B coverage

could not become effective until he returned to pay and duty status on 7/29/13, his Option C

coverage became effective on 7/14/13, the date of the marriage.

If You Turn in Your SF 2817 on or after the Date of the Event

If you submit your SF 2817 on or within 60 days after the date of the event, Option C is effective

on the day the employing office receives your completed election, regardless of whether you are

in pay and duty status.

Example

U.S. Office Of Personnel Management

When Tiffany (see example above) submitted her SF 2817 on 8/30/12, in addition to electing one

multiple of Option B, she elected three multiples of Option C. Although her Option B coverage

could not become effective until she returned to pay and duty status on 10/31/12, her Option C

coverage became effective on 8/30/12, the date she turned in her SF 2817.

If Your Life Event Is Acquiring a Foster Child

If you are making an Option C election because you have acquired a foster child, the coverage is

effective on the later of:

 The date your employing office receives your SF 2817 (Life Insurance Election); or

 The date your employing office receives your foster child certification

Extensions to the Time Limit for Making a Life Event Election

The 60-day time limit for making a life event election can be extended only in the following

situation:

 If you are not serving in a covered position on the date of the event, you may make a life

event election within 60 calendar days of becoming employed in a covered position.

 The 60 day election time frame applies to employees whose eligibility for FEGLI

coverage begins on or after October 1, 2010. They must be new or newly eligible on or

after October 1, 2010.

Example

Ursula had Basic insurance and three multiples of Option B when she resigned on 8/21/12. On

10/21/12 Ursula got married. She returned to Federal service 11/16/12. Since her break in

service was less than 180 days, Ursula got back the same coverage she had before she

separated. However, because she had a life event during her separation, and the life event

occurred after October 1, 2010, Ursula may elect Option B, up to two more multiples (for a

maximum of five multiples), and Option C, up to 5 multiples, within 60 days of her return to

service.

If you do not have Basic insurance on the date of the event, and you are still within the one-year

waiver period during which you are not eligible to elect coverage, you may elect Option C later.

If you apply after the one-year waiting period by submitting medical evidence to OFEGLI and

are approved, you can elect Option C as long you elect Basic and it is within 60 days of the one-

year anniversary of your original waiver.

U.S. Office Of Personnel Management

Example

Valerie waived all FEGLI coverage when she entered on duty 5/15/11. In October 2011 she got

married. Valerie is still within the one-year period during which she is not eligible to cancel her

waiver of Basic insurance. Her one-year period ends 5/15/12. Valerie can provide medical

information and can request Basic insurance (and Options A and B, if she wants them) as soon

as the one-year period is up 5/15/12. Valerie cannot elect Option C by providing medical

information. However, if OFEGLI approves her request for insurance, Valerie will get Basic

insurance. She may then make an Option C life event election as long as it is within 60 days of

the date she became eligible to cancel her waiver of Basic insurance. Since the first date she

was eligible to cancel her waiver of Basic insurance was 5/15/12, Valerie has until 7/15/12 to

make her Option C election. If she does not make the election by that date, she will have to wait

until the next open season or until she has another life event.

There are no other extensions to the 60-day time limit for making life event elections.

OPEN SEASONS

 Schedule

 Elections Allowed

 Effective Date of Open Season Elections

 Pay and Duty Status Requirements

 Belated Open Season Elections

Schedule

There are no regularly scheduled open seasons for life insurance. Open seasons are infrequent,

and are held only when specifically scheduled by OPM. They are NOT held annually, as is the

case with the Federal Employees Health Benefits Program (FEHB), the Federal Flexible

Spending Account Program (FSAFEDS), and the Federal Employees Dental and Vision

Insurance Program (FEDVIP).

Elections Allowed

When OPM schedules an open season for life insurance, we will announce the types of changes

and elections that will be allowed.

Effective Date of Open Season Elections

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100

OPM sets the effective dates for open season elections. We will announce the effective dates at

the same time we announce the open season.

Pay and Duty Status Requirements

Unless specifically announced otherwise, full-time employees must be in pay and duty status for

at least 32 hours in the pay period right before the scheduled effective date of open season

elections. Open season announcements will contain more details about the pay and duty status

requirements.

If you are a part-time employee, you must be in pay and duty status for one-half the regularly

scheduled tour of duty shown on your current Notification of Personnel Action (SF 50) for newly

elected coverage to become effective.

If you have no regularly scheduled tour of duty or are employed on an intermittent basis, you

must be in pay and duty status for one-half the hours customarily worked before newly elected

coverage can become effective. Your employing office can determine the number of hours you

customarily work by averaging the number of hours you worked in the most recent calendar year

quarter prior to the start of the open season.

If you do not meet the pay and duty status requirements in the pay period before the scheduled

effective date, your new coverage will be delayed until you do meet these requirements. As soon

as you meet the pay and duty status requirements, your new coverage will go into effect at the

start of the next pay period.

Example

Wayne was a full-time employee with Basic insurance and one multiple of Option B. During the

2004 open season he elected Basic insurance, five multiples of Option B, and five multiples of

Option C. Elections from the 2004 open season became effective the first pay period beginning

on or after 9/1/05; for Wayne’s agency, that was 9/4/05. However, Wayne went on vacation

8/20/05 and didn’t return to work until 9/6/05. Since he wasn’t in pay and duty status for 32

hours during the pay period before the “regular” effective date, Wayne’s new coverage couldn’t

become effective at that time. The pay period ending 9/17/05 was the one in which Wayne met

the pay and duty status requirements. His new coverage therefore became effective 9/18/05.

Belated Open Season Elections

Your employing office can accept a belated open season election if both the following conditions

are met:

 It is no later than six months after the open season ended; and

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 Your employing office determines that you were unable to make the election on time

because of reasons beyond your control.

If both of these conditions are met, you must submit your open season election form within 60

days after being notified by your agency

Belated open season elections are effective the same date as if you had made the election on

time. If you do not meet the pay and duty status requirements for that effective date, your new

coverage will become effective the first pay period after that date that follows a pay period in

which you do meet these requirements. If the effective date of your belated open season election

is retroactive, you must pay premiums back to that date.

Example

Taylor made a belated open season election for Basic Insurance on January 1. At the time he

made his election he was on paid annual leave for 2 weeks. Taylor returned to work on January

15. His open season election will not be effective until the first pay after January 15.

Any coverage that you do not elect during the 60-day time frame is considered to be waived

again.

Your agency cannot accept a belated open season election more than six months after the open

season has ended.

BREAKS IN SERVICE

 Effect of a Break in Service

o Fewer than 180 Days

o 180 Days or More

Effect of a Break in Service

Fewer than 180 Days

A break in service of fewer than 180 days has no effect on a waiver of FEGLI coverage.

If you are reinstated after a break in service of fewer than 180 days, you will automatically get

back any FEGLI coverage you had at the time you separated. Any waiver remains in effect. If

you wish to elect more coverage, you can do so by providing satisfactory medical information or

by experiencing a life event.

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180 Days or More

If you are reinstated after a break in service of 180 days or more, your agency will automatically

enroll you in Basic and the same Optional insurance that you had in your prior position. The

same coverage is reinstated regardless of the length of the break in service. You will have this

coverage the first day you are in pay and duty status.

If you waived all FEGLI coverage at the time you began your break in service, this waiver is

automatically cancelled and you will be automatically enrolled in Basic upon reenrollment unless

you waive Basic again.. If you do not waive coverage again upon reemployment, Basic

insurance becomes effective your first day in pay and duty status in a position in which you are

eligible for coverage.

You may elect Optional insurance (if you don't already have the maximum) within 60 days of

returning to service, regardless of the coverage you had during previous employment. If you do

not make a new election, you will automatically get back whatever Optional insurance you had

immediately before your separation and any coverage that you had previously waived will be

waived again.

EMPLOYING OFFICE RESPONSIBILITIES

 Counseling for New Employees

 If You Have Prior Federal Service

 Initial Decision and Reconsideration

Counseling for New Employees

During the orientation for new employees, your employing office should explain the life

insurance program to you and provide you with a copy of the Life Insurance Election (SF 2817),

and the FEGLI Program Booklet for Federal Employees (FE 76-21), or for Postal Employees

(FE 76-20), or direct you to information online at http://www.opm.gov/healthcare-insurance/life-

insurance/. If your agency uses an electronic system, this information should be provided in a

timely manner. You can use the system to make your election. Electronic systems are

administered by the agency, not OPM.

If You Have Prior Federal Service

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If you have previously worked for the Federal or District of Columbia Governments, it is

important that your employing office determines whether you have an un-cancelled waiver of

life insurance coverage (see “Effect of a Break in Service”) or assignment of insurance in effect.

Initial Decision and Reconsideration

Initial Decision

Your employing office has the initial responsibility for determining whether you are eligible to

elect or increase life insurance. This determination is an initial decision when your employing

office gives it to you in writing and informs you of the right to an independent level of review

(reconsideration) by the appropriate agency office.

Exception: The Office of Federal Employees' Group Life Insurance (OFEGLI) determines your

eligibility to cancel a waiver based on medical evidence of insurability and your eligibility for

Living Benefits. There is no reconsideration right for this decision.

Reconsideration Right

You have the right to ask your employing office to reconsider its initial decision denying life

insurance coverage or the opportunity to change coverage. The reconsideration process applies

only to enrollment issues. Your employing office cannot make decisions about payment of

claims (the Office of Federal Employees' Group Life Insurance makes these decisions).

The reconsideration review determines if your employing office acted properly and in

accordance with the law and regulations in its initial decision. Initial decisions that comply with

law and regulations cannot be overturned by reconsideration.

Example

Cathy, who had waived Optional life insurance coverage, separates from service and is

reemployed less than 180 days later. Upon her reemployment, she attempts to elect Option B.

Her employing office denies the election. This initial decision cannot be overruled by

reconsideration, because by regulation previous waivers remain in effect when an employee goes

from one agency to another with a break in service of less than 180 days.

How to Request Reconsideration

If you wish to request a reconsideration of an initial decision, you must make your request in

writing. The request must include:

 Your full name and address

 Your date of birth

 The reason(s) for the request

 A copy of the written initial decision

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 If you are retired or receiving workers’ compensation, your retirement claim number or

compensation claim number.

Time Limit

You must make the request for reconsideration within 31 calendar days from the date of the

initial decision.

This time limit can be extended when you show that you were not notified of the time limit and

were not otherwise aware of it or that you were unable, due to reasons beyond your control, to

make the request within the time limit.

Who Does the Reconsideration?

Agencies are responsible for evaluating reconsiderations for employees (OPM’s Retirement

System evaluates requests from annuitants). A reconsideration must take place at or above the

level at which the initial decision was made.

Final Decision

After reconsideration, your employing office (or OPM) must issue a final decision. This decision

must be in writing and must fully state the findings. If you disagree with the final decision issued

by your employing office, you may seek judicial review as described in section 8715, title 5,

United States Code.

Effective Date

When your employing office decides that you should have been allowed to enroll or change

enrollment, it accepts a Life Insurance Election form (SF 2817) from you making the change.

You have 60 days to make the election.

Generally, changes made upon reconsideration are made prospectively. In some cases, the law or

regulations provide for retroactive effective dates. In these cases, there is no need for your

employing office to decide whether a retroactive effective date is appropriate.

In certain cases, your employing office may consider your request that the change be made

retroactive to an earlier date, generally the date it would have been effective if you had been able

to make a timely election.

NONPAY STATUS

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 Continued Coverage

 Temporary Appointments

 Special Nonpay Situations

o Appointments to Employee Organizations

o Appointments to State Governments, Local Governments, Indian Tribal

Organizations, or Institutions of Higher Education

o Transfers to International Organizations

Continued Coverage

You are entitled to continue life insurance for up to 12 months while you are in nonpay status.

The 12-month period starts when you are in nonpay status for an entire pay period. No premium

payments are required – either from you or from your agency – when you are in nonpay status

for an entire pay period.

Exceptions:

 If you are receiving Workers' Compensation, OWCP withholds the premiums from your

compensation

 If you accept another position while you are in nonpay status, you do have to pay

premiums. The agency that is actually paying you a salary withholds the premiums from

your salary. If the new position is a temporary (not-to-exceed one year) FEGLI ineligible

position, the withholding is based on whichever position has the higher salary; otherwise,

the withholding is based on the combined salaries

 If you are in one of the special nonpay situations described below, you may have to pay

premiums, depending on the election you make

Your life insurance coverage terminates at the end of the 12-month period, with a 31-day

extension of coverage and a right to convert to an individual policy.

If your 12-month period of continued coverage while in nonpay status is interrupted by a period

of less than four months in pay status, your 12-month eligibility period continues when you

return to nonpay status. If you return to pay status for four (or more) consecutive months, and

then return to nonpay status, you begin a new 12-month eligibility period. To meet the four

consecutive months requirement, you must be in pay status for at least part of each pay period

during four consecutive months. It is important to remember that FEGLI premiums for the

whole pay period are withheld if you are in pay status for any part of the pay period.

Exceptions:

 If your coverage terminates because you have completed 12 months in nonpay status, you

must return to pay and duty status in a FEGLI eligible position to get the coverage back.

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Once coverage has terminated, simply returning to pay status – such as by using donated

leave or any other kind of leave– does not reinstate your FEGLI coverage.

 If you return to pay and duty status in a FEGLI eligible position after your coverage has

terminated due to being in nonpay status for more than 12 months, your coverage is

reinstated. However, if you do not remain in pay status for at least four months, your

coverage is again terminated when you return to nonpay status. You cannot get a new

12-month eligibility period unless you return to pay status and remain in pay status for at

least four months.

 Being in nonpay status is not a break in service, since you are still on your agency’s rolls.

Therefore, you do not get a new election opportunity when you return to pay and duty

status. You cannot elect new coverage unless you follow the procedures in Canceling a

Waiver and Electing Coverage.

Example 1

Wendy went into nonpay status 4/11/12 and returned to pay status 6/26/12 by using donated

leave. She went back into nonpay status 8/31/12. Since 4/11/12 was in the middle of a pay

period, Wendy’s 12-month period of continued coverage began 4/16/12, her first full pay period

in nonpay status. She returned to pay status 6/26/12, which was the first work day in the pay

period. She therefore used 70 days (five full pay periods) of her 12-month period of continued

coverage before returning to pay status on 6/26/12. Since Wendy was not in pay status for four

months when she went back into nonpay status on 8/31/12, she did not start a new 12-month

period of continued coverage. When she went back into nonpay status on 8/31/12, Wendy’s

original 12-month period picked up where it left off; she has 295 days remaining. Since 8/31/12

was in the middle of a pay period, the remainder of Wendy’s 12-month period starts counting

again on 9/3/12, her first full pay period back in nonpay status. FEGLI coverage will terminate

at the end of the day on 6/24/13, if she doesn’t return to pay status before then.

Example 2

Xavier went into nonpay status 4/11/12 and returned to pay and duty status 6/26/12. He went

back into nonpay status 12/5/12. Since 4/11/12 was in the middle of a pay period, Xavier’s 12-

month period of continued coverage began 4/16/12, his first full pay period in nonpay status. He

returned to pay status 6/26/12, which was the first work day in the pay period. He therefore used

70 days (five full pay periods) of his 12-month period of continued coverage before returning to

pay status on 6/26/12. Since Xavier was in pay status for more than four months when he went

back into nonpay status on 12/5/12, he is entitled to start a new 12-month period of continued

coverage. If he remains in nonpay status, his FEGLI coverage will not terminate until the end of

the day on 12/4/13.

Example 3

Xenia went into nonpay status 4/11/11 and returned to pay and duty status 7/17/12. She went

back into nonpay status 10/12/12. Since 4/11/11 was in the middle of a pay period, Xenia’s 12-

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month period of continued coverage began 4/16/11, her first full pay period in nonpay status.

Since Xenia was in nonpay status for more than 12 months, her FEGLI coverage terminated at

the end of the day on 4/15/12. Xenia got her coverage reinstated when she returned to pay and

duty status on 7/17/12; however, she did not remain in pay status for at least four months.

Therefore Xenia’s coverage terminated again when she returned to nonpay status 10/12/12.

Example 4

Yancey went into nonpay status 4/11/11. 4/11/11 was in the middle of a pay period, so Yancey’s

12-month period of continued coverage began 4/16/11, his first full pay period in nonpay status.

On 7/17/12 Yancey received donated leave and returned to pay status. Since Yancey was in

nonpay status for more than 12 months, his FEGLI coverage terminated at the end of the day on

4/15/12. The donated leave Yancey received on 7/17/12 returned him to pay status; however,

since he did not return to duty status, his FEGLI coverage was not reinstated.

Example 5

Yvette was a permanent employee with FEGLI who transferred to a temporary position with no

break in service, so she was able to continue her FEGLI coverage. She went into nonpay status

4/11/11 and returned to pay and duty status 7/17/12. 4/11/11 was in the middle of a pay period,

so Yvette’s 12-month period of continued coverage began 4/16/11, her first full pay period in

nonpay status. Since Yvette was in nonpay status for more than 12 months, her FEGLI coverage

terminated at the end of the day on 4/15/12. Although Yvette returned to pay and duty status on

7/17/12, she did not return to a FEGLI eligible position. Therefore her FEGLI coverage was not

reinstated.

In the examples above, the agency will complete a SF 2821 and an SF 2819 whenever FEGLI

coverage terminates. This means there could be occasions where multiple forms are completed

for discrete periods of covered and terminated coverage.

Temporary Appointments

If you are entitled to 12 months of insurance while in nonpay status and accept a temporary

appointment to a position in which you would normally be excluded from insurance, your

insurance continues for the remainder of the 12-month period. Your BIA is based on your higher

salaried position. Withholdings are made from your pay in the temporary position.

When you have completed 12 months of nonpay status from the position that entitled you to life

insurance coverage, your FEGLI coverage terminates even if, by mistake, premiums continued to

be withheld from your pay in the temporary position. You will get the 31-day extension of

coverage and right to convert. You cannot continue FEGLI in the temporary position.

Example

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Zeke was a permanent full-time employee with a salary of $58,412. He went into nonpay status

2/16/12. Since 2/16/12 was in the middle of a pay period, Zeke’s 12-month period of continued

coverage began 2/19/12. His FEGLI continued at no cost to him. On 7/24/12 Zeke began a

temporary position with another agency; the salary in the temporary position was $38,770. His

FEGLI continued, with his BIA (and any Option B coverage) based on the higher salary from his

full-time permanent position. However, the coverage was no longer free; the premiums were

withheld from his salary in the temporary position; that agency pays the Government

contribution for Basic insurance. When Zeke completes 12 months in nonpay status at the end of

the day on 2/18/12 from the position that gave him FEGLI eligibility, his FEGLI coverage will

terminate. He cannot continue FEGLI in the temporary position.

Special Nonpay Situations

Employees in one of the following special nonpay situations may elect to continue their FEGLI

coverage for the duration of their appointment. If you make such an election, your coverage will

continue, even if you remain in nonpay status for more than 12 months. You must pay the

premiums applicable to your special nonpay situation from the beginning of your nonpay status.

You do not get 12 months of free coverage.

If you are in one of the special nonpay situations listed below, and you do not elect to continue

your coverage, you will get 12 months of free coverage. Your coverage will terminate at the end

of the 12-month period, the same as for any other employee in nonpay status.

Appointments to Employee Organizations

If you go into nonpay status to serve as a full-time officer or employee of an employee

organization, within 60 days of the start of the nonpay status you may elect in writing to continue

life insurance for the duration of your appointment.

You must pay to your employing agency of record the full cost of Basic and Optional insurance.

There is no Government contribution. You must pay your premiums to your employing agency

before, during, or within three months after the end of each pay period in a manner designated by

your employing agency.

Failure to pay your premiums within this time frame will result in termination of your coverage,

subject to the 31-day extension of coverage and conversion privilege. Coverage cannot be

reinstated until you return to pay and duty status in a FEGLI eligible position in Federal service.

Exception: Your coverage will be restored retroactively if your Federal employing agency finds

that you were unable to make the premium payments for reasons beyond your control and you

make the payments at the first opportunity.

Appointments to State Governments, Local Governments, Indian Tribal

Organizations, or Institutions of Higher Education

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If you go into nonpay status while assigned to a State or local government, Indian tribal

organization, or institution of higher education, you may elect in writing to continue your life

insurance for the length of your assignment.

You must pay your premiums to your employing agency of record before, during, or within three

months after the end of each pay period. Your Federal employing agency must continue to pay

the Government contribution for Basic insurance as long as you make your payments.

Failure to pay your premiums within this time frame will result in termination of your coverage,

subject to the 31-day extension of coverage and conversion privilege. Coverage cannot be

reinstated until you return to pay and duty status in a FEGLI eligible position in Federal service.

Exception: Your coverage will be restored retroactively if your Federal employing agency finds

that you were unable to make the premium payments for reasons beyond your control and you

make the payments at the first opportunity.

Transfer to International Organizations

If you are transferred to an international organization as provided in 5 U.S.C. 3582, you may

elect in writing to continue life insurance coverage for the duration of your appointment.

You must pay your premiums to your Federal employing agency before, during, or within three

months after the end of each pay period. Your employing agency must continue to pay the

Government contribution for Basic insurance as long as you make your payments.

Failure to pay your premiums within this time frame will result in termination of your coverage,

subject to the 31-day extension of coverage and conversion privilege. Coverage cannot be

reinstated until you return to pay and duty status in a FEGLI eligible position in Federal service.

Exception: Your coverage will be restored retroactively if your Federal employing agency finds

that you were unable to make the premium payments for reasons beyond your control and you

make the payments at the first opportunity.

Regulations governing transfers to international organizations are in 5 C.F.R. Part 352.

Military Reservists Called to Active Duty

Public Law 110-181, the Department of Homeland Security Appropriations Act, was enacted

January 28, 2008. Section 1102 of the Act authorizes the continuation of FEGLI coverage for up

to 24 months for Federal employees called to active duty.

The new law allows employees who enter on active duty, or active duty for training in one of the

uniformed services for more than 30 days, to continue their FEGLI enrollment for an additional

12 months, for a total of up to 24 months. However, employees must pay both the employee and

agency share of premiums for their Basic coverage, and pay the entire cost (there is no agency

share) for any Optional insurance for the additional 12 months of coverage.

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INCONTESTABILITY

Incontestability is allowing erroneous coverage (coverage that was obtained in error) to remain

in effect under certain conditions. Those conditions are:

 Erroneous coverage was in effect for at least 2 years before the error is discovered;

 You paid the applicable premiums for the erroneous coverage while it was in effect;

 You are an employee or a new retiring employee or new compensationer; The error is

discovered on or after October 30, 1998.

All conditions must be met for Incontestability to apply.

Since retirees cannot newly elect FEGLI coverage, coverage acquired erroneously after the

date you retire or begin receiving compensation cannot be used to meet the requirements for

Incontestability.

If you don't want the erroneous coverage made valid because of Incontestability, you can cancel

it. However, the cancellation is prospective. There is no refund of premiums. Exception: If you

got Option C coverage erroneously, and you did not have any eligible family members, you can

cancel that coverage retroactively and get a refund of the erroneous Option C premiums.

Example 1

Dean, who had previously waived coverage, transfers from one agency to another without a

break in service and is allowed to elect insurance at the new agency. This is an agency error.

However, if more than two years pass before the error is discovered, and if Dean paid the

applicable premiums during that time, his erroneous election must be allowed to stand.

Example 2

Diane had Basic only for her entire Federal career and retired December 31, 2012. The OPM

Retirement Office incorrectly gave her Basic and Option A when her retirement case was

processed. This is an agency error. However, if more than two years pass from her retirement

commencement date to the time the error is discovered, and if Diane paid the applicable

premiums during that time, the erroneous coverage must be allowed to stand.

Once your employing office or retirement system determines that your enrollment should be

allowed to stand, it must prepare a note to the file explaining the details of the error, the date it

occurred, the date it was discovered, and the fact that your enrollment is now valid due to

Incontestability.

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Enrollments that are allowed to stand due to Incontestability become valid enrollments. If you

were enrolled in the FEGLI Program for at least the five years immediately prior to retirement

(or for all opportunities to be enrolled), even if part or all of the enrollment was in error but was

allowed to stand, you are entitled to carry the enrollment into retirement.

Upon your retirement, your employing office must forward the note explaining the details of the

validated enrollment along with the Life Insurance Election (SF 2817) to the retirement system.

If there is no SF 2817, the employing office must provide the Notification of Personnel Action

(SF 50) showing the change in FEGLI coverage or an explanatory note to the file to be

forwarded to the retirement system. The employing office should also provide a note in the

"remarks" section of the Agency Certification of Insurance Status (SF 2821) explaining that

Incontestability was used to ratify an erroneous enrollment.

OPM issued Benefits Administration Letter (BAL) 99-214 on August 24, 1999 with revised

Incontestability information that provides many more examples. FEGLI BALs are available at

http://www.opm.gov/healthcare-insurance/life-insurance/reference-materials/#url=Benefits-

Administration-Letters

CORRECTION OF ERRORS

Employing Office

Your employing office can correct administrative errors regarding coverage or changes in

coverage at any time. When retroactive corrections are made, your employing office must

determine whether the proper amounts of life insurance deductions were made from your pay. It

must submit any uncollected deductions and any applicable Government contributions to the

Office of Personnel Management for deposit in the Employees' Life Insurance Fund.

See "Errors Involving Current Employees - Underdeductions [new link]" for information on

collection and waiver of deductions.

OPM

The Office of Personnel Management can order correction of an administrative error after

reviewing evidence that it would be against equity and good conscience not to do so. A request

for review should be sent to OPM, Individual Benefits and Life, RM 3400, 1900 E Street, NW,

Washington DC 20415.

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HISTORICAL INFORMATION

 1981 Automatic Cancellation of Optional Insurance and Cancellation of Waiver

o Cancellation of Optional Insurance

o Cancellation of Waiver

 Breaks in Service

 Cancellation of Option C When There Are No Eligible Family Members

 Getting a Physical Exam

 Life Events

 Open Season History

1981 Automatic Cancellation of Optional Insurance and Cancellation

of Waiver

Cancellation of Optional Insurance

Prior to April 1, 1981, the only Optional insurance available was what is now Option A.

If you elected Optional insurance on or before February 28, 1981, the coverage was

automatically cancelled effective at the end of the pay period which included March 31, 1981.

Exception: If you were not in pay and duty status during the first pay period which began on or

after April 1, 1981, the election was automatically cancelled on the first day after the end of the

next pay period in which you were in pay and duty status.

If you wanted to continue Option A, you had to elect it during the March 1981 open season.

Cancellation of Waiver

If you waived Basic and/or Optional insurance on or before February 28, 1981, the waiver was

automatically cancelled effective on the first day you were in pay and duty status on or after

April 1, 1981.

Basic insurance coverage was effective automatically on the date of the waiver's cancellation,

unless you filed a new waiver of Basic insurance before the end of the pay period during which

the coverage became effective.

Exception: Your waiver of Basic insurance remained in effect if you:

 Waived Basic and/or Optional insurance after February 28, 1981; and

 Separated; and

 Returned to Federal service before December 9, 1983

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You were permitted to elect Basic insurance and any form of Optional insurance by submitting

an election to your employing office before March 7, 1984.

If you filed an election of Option A during the March 1981 open season, Option A was effective

on the date of the waiver's cancellation. If you did not file an election with your employing

office during the March 1981 open season, you are considered to have waived Option A on

March 31, 1981.

Breaks in Service

Until December 8, 1983 a break in service did not cancel a waiver, regardless of how long the

break was. All waivers remained in effect when a separated employee returned to service.

Cancellation of Option C When There Are No Eligible Family Members

Initially a cancellation of Option C when there were no longer any eligible family members was

prospective, the same as any other cancellation. Effective November 17, 1986, these Option C

cancellations are made retroactive to the first pay period in which there were no eligible family

members, and the insured individual receives a refund of premiums retroactively to that date.

Providing Medical Information

Until July 14, 1986, employees age 50 and older could not cancel a waiver by providing

satisfactory medical information. Only employees under age 50 could cancel a waiver this way.

Life Events

When Option B and Option C were put into effect in 1981, the only life events were marriage

and acquiring an eligible child. Divorce and death of a spouse were added as life events

effective September 29, 1993.

Initially only employees under age 36 could make an Option B election due to a life event. The

age restriction was removed effective April 5, 1989.

Employees with Option C coverage who had a life event between October 30, 1998, and April

23, 1999, had until June 23, 1999, to make an election to increase the number of multiples. The

new coverage was effective April 24, 1999.

Initially employees who experienced a life event could elect Option B multiples equivalent to the

number of family members acquired, and Option C (up to five multiples maximum). Effective

October 1, 2010, an employee experiencing a life event can elect any FEGLI coverage and any

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number of Option B and/or Option C multiples, except that Basic always must be in effect or

elected first.

Effective June 26, 2013, a same-sex spouse of a valid marriage is recognized as a family member

for benefits under the FEGLI Program. Legal same-sex marriages entered into following this

decision will be treated in the same manner as opposite-sex marriages, regardless of an

employee’s or annuitant’s state of residency. This includes legal international same-sex

marriages granted in foreign countries that authorize such marriages, regardless of an employee’s

or annuitant’s state of residency. Consistent with OPM’s long-standing policy of recognizing the

legal foreign marriages of opposite-sex couples for purposes of FEGLI, OPM will also recognize

legal same-sex marriages granted in countries that authorize such marriages, regardless of an

employee’s or annuitant’s state of residency, for purposes of these programs.

Open Season History

These are all of the FEGLI open seasons since the beginning of the Program:

Dates

Elections

Permitted

Positive

Reenrollment

Required?

Effective Date

Pay and Duty

Status

Requirement

February 14-April

14, 1968

All (Options B

and C didn't

exist)

Yes. All previous

Basic waivers

cancelled 1st day of

1st pay period on/after

2/14/68. You had

from 2/14/68-4/14/68

to elect or decline

Optional insurance.

Day after previous

waiver was cancelled

(unless you filed new

Basic waiver).

Optional insurance

was effective day of

receipt in employing

office.

March 1-31, 1970

All (Options B

and C didn't

exist)

April 1, 1970

Yes

March 1-31, 1981

All

Yes. If you did not

file an election, you

automatically had

Basic only.

April 1, 1981

Yes

June 1-July 1, 1985

All

day of 1

pay

period beginning on

or after August 1,

1985

Yes

March 29-April 30,

1993

All

day of 1

pay

period beginning on

or after May 30,

1993

Yes

May 22-July 21,

1995

Basic only

day of 1

pay

period beginning on

or after date

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employing office

received SF 2817

April 24-June 30,

1999

All

day of 1

pay

period beginning on

or after April 23,

2000

Yes

September 1-

September 30, 2004

All

day of 1

pay

period beginning on

or after September 1,

2005

Yes

Incontestability and Administrative Errors

If an administrative error was made before January 1, 1995, your employing office does not have

the authority to issue a reconsideration decision (unless the error was an underdeduction or

overdeduction of premiums - your employing office has the authority to correct these errors).

Instead, you must request reconsideration from OPM, Individual Benefits and Life, RM 3400,

1900 E Street, NW, Washington DC 20415.

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TERMINATION AND CONVERSION

 Difference between Cancellation and Termination

 Termination of Employees’ Basic Insurance

 Termination of Employees’ Optional Insurance

 Concurrent Employment

 31-Day Extension of Coverage

 Conversion of Insurance

 Conversion for Family Members

 Employing Office Responsibilities

 Time Limit and Effective Date

 Termination of Annuitants’ and Compensationers’ Insurance

 Historical Information

DIFFERENCE BETWEEN CANCELLATION AND

TERMINATION

 Coverage Stops

 Cancellation

 Termination

Coverage Stops

With both cancellation and termination, your FEGLI coverage stops.

Cancellation

Cancellation of coverage is a voluntary action. With cancellation you do not get a 31-day

extension of coverage or a right to convert. Cancellation also affects your ability to continue

coverage into retirement.

Cancellation takes place in one of two ways:

 By making a written request. If you are an employee, you complete a Life Insurance

Election (SF 2817) canceling some or all of your coverage and submit it to your agency

employing office. If you are an annuitant or a compensationer, you send a letter to

OPM’s Retirement Operations Office requesting that some or all of your coverage be

cancelled; or

 You are on direct pay and you do not pay your premiums.

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Termination

Termination of coverage is an involuntary action. With termination you get a 31-day extension

of coverage and a right to convert. Termination does not affect your eligibility to continue

coverage into retirement.

Exception: If the annuity or compensation of an insured individual is terminated, or if the

Department of Labor finds that an insured compensationer is able to return to duty, his/her

FEGLI coverage held as an annuitant or compensationer stops on the date of the termination or

finding. There is no 31-day extension of coverage or conversion right.

TERMINATION OF EMPLOYEES’ BASIC

INSURANCE

 Separation from Service

 Nonpay Status

 Insufficient Pay

 Move to an Excluded Position

Separation from Service

Your Basic insurance terminates (stops) at the end of the day on which you separate from

service.

Exceptions:

 If you transfer to a FEGLI eligible position in another agency with no break in service,

your insurance continues

 If you separate for retirement, you may be eligible to continue your coverage

 If you separate from service to enter the military, you are considered to be in a nonpay

status for FEGLI purposes. As long as you have reemployment rights under USERRA

(The Uniformed Services Employment and Reemployment Rights Act of 1994), you can

keep your FEGLI coverage for up to 24 months in nonpay status, or until 90 days after

your military service ends, whichever date comes first. Coverage is free for the first 12

months; however, employees must pay both the employee and agency contributions of

premiums for their Basic coverage and continue to pay the entire cost (there is no agency

share) for any Optional insurance they may have for the additional 12 months of

coverage. If you wish to continue coverage after the first 12 months in nonpay status you

must elect to do so prior to the end of the first 12 months in a manner designated by your

agency. At the end of 12 months (or 90 days after the military service ends, whichever

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gives you more time), the coverage terminates unless you elect to continue it for the

additional 12 months.

 If you were employed by the Department of Defense in support of the Civilian

Marksmanship Program the day before the Program was transferred to a private

corporation, and you accepted employment by this corporation as part of the transition,

your FEGLI continued unless you opted out of Federal benefits. You may continue your

FEGLI coverage as long as you remain employed by the corporation.

 If you were employed by the Senate Restaurants the day before the Program was

transferred to a private business concern, and you accepted employment with this

contractor, your FEGLI continued unless you opted out of Federal benefits. A Senate

restaurant employee who had life insurance coverage on the date of transfer to a private

business concern on or after July 17, 2008, and who elected to continue FEGLI coverage

and their retirement coverage under either chapter 83 or 84 of title 5, United States Code,

is eligible for FEGLI during continuous employment with the private contractor, unless

the employee opts out of the FEGLI program.

Nonpay Status

Your Basic insurance stops at the end of the day on which you complete 12 months in nonpay

status.

Exceptions:

 If you are in nonpay status while receiving workers’ compensation, you may be eligible

to continue your coverage; or

 If you are in one of the special nonpay situations, you may be eligible to continue your

coverage beyond 12 months; or

 If you are active duty military and you elected to continue insurance for an additional 12

months.

Insufficient Pay

If your pay is insufficient to make any premium withholdings (including if you are in insufficient

pay due to a government furlough), and you do not elect to make direct payments, your coverage

terminates at the end of the pay period in which the last premium withholding was made.

Move to an Excluded Position

Your Basic insurance stops at the end of the day before the day on which you move to a position

in which eligibility for life insurance is excluded. See “Employees Excluded from Coverage” for

exceptions.

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TERMINATION OF EMPLOYEES’ OPTIONAL

INSURANCE

 Relation to Basic Insurance

 Retirement and Compensation

 Insufficient Pay

Relation to Basic Insurance

Your Optional insurance stops when your Basic insurance stops.

Retirement and Compensation

If you are eligible to continue Basic insurance as an annuitant or compensationer, but not some

or all of your Optional insurance, the Optional insurance you are not eligible to continue into

retirement or compensation stops at the end of the day before Basic insurance is continued into

retirement or compensation.

Insufficient Pay

If your pay is insufficient to make premium withholdings for your Optional insurance, and you

do not elect to make direct payments for your FEGLI premiums, your Optional insurance

terminates at the end of the pay period in which the last premium withholding was made.

If your pay is sufficient for some of the withholdings, but not all, your employing office will

terminate coverage in the following order:

 The multiples of Option C; then

 Option A; then

 The multiples of Option B

CONCURRENT EMPLOYMENT

Your FEGLI terminates if:

 You are serving in more than one position; and

 One of the positions is an excluded position; and

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 You complete 12 months in nonpay status in the FEGLI eligible position

Your FEGLI continues if you complete 12 months in nonpay status in the excluded position. At

the end of 12 months, your coverage will be based on the salary in the FEGLI eligible position.

Your FEGLI continues if you separate from the FEGLI eligible position. Your coverage will be

based on the salary in the excluded position.

31-DAY EXTENSION OF COVERAGE

When your life insurance stops, except by waiver or cancellation, your coverage automatically

continues for an additional 31 days after the termination date. No premiums or Government

contributions are required during the 31-day extension. This extension does not include

accidental death and dismemberment coverage.

There is no extension of coverage during the following situations:

 When you waive or cancel your insurance

 When your annuity or compensation is terminated and your FEGLI stops

 When a family member loses his/her eligibility under Option C

 When you coverage has been terminated more than 31 days.

CONVERSION OF INSURANCE

 Conversion Privilege

 Individual Policy

 Process

Conversion Privilege

When your group life insurance terminates, you are entitled to convert your coverage to an

individual non-FEGLI policy. Exception: If you return to Federal service in a FEGLI eligible

position within three calendar days after the date your insurance stops, your coverage will

continue and you are not eligible to convert.

There is no conversion privilege if you cancel your coverage.

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There is no conversion privilege when your annuity or compensation is terminated and your

FEGLI stops.

If you have assigned your insurance, it is the assignee(s), rather than you, who is entitled to

convert your Basic, Option A, and Option B coverage. You still are entitled to convert your

Option C coverage since Option C cannot be assigned.

Individual Policy

Under the conversion privilege, you may convert all or any part of your Basic and Optional

insurance to an individual policy. If you are unable to convert, a person having power of

attorney for you may convert on your behalf. No medical examination is required, although you

may be asked a few questions about your health to see if you qualify for a lower premium. You

do not have to answer these questions, but if you do not, you may be paying a higher premium

than necessary.

The individual policy will be issued by an insurance company you (or your assignee(s), if

applicable) select from the list of approved companies that have been accepted by OPM as

eligible and that has agreed to issue such policies under the provisions of the FEGLI contract.

The individual policy may be for any type of life insurance customarily issued by the insurance

company you select, except term insurance, universal life insurance, or any other type of life

insurance with an indeterminate premium. It cannot include disability or Accidental Death &

Dismemberment benefits.

Family members may convert Option C coverage (and name beneficiaries of their choice) if you

die or if your insurance terminates under conditions that allow you to convert Option C coverage

but you do not convert.

Note: For Option C, the conversion policies are for individuals only. The conversion policies do

not include “family” policies similar to the FEGLI Program’s Option C. If you convert your

Option C coverage, you will be purchasing an individual policy for each family member whose

coverage you choose to convert. You can only obtain a conversion policy for family members

who exist on the effective date of the conversion policy – 32 days after the terminating event. A

conversion policy cannot be issued for a family member added after that date.

Any insurance policy purchased under the conversion privilege is a private business transaction

between you and the insurance company. The cost of the individual policy is determined by the

insurance company and is based on your age and class of risk. Since you will no longer be part

of the group contract, the premium payments may be much higher than the FEGLI premiums.

Process

When your insurance terminates, your employing office must give you a Notice of Conversion

Privilege (SF 2819). If you wish to convert your coverage, you must send the SF 2819 to the

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Office of Federal Employees’ Group Life Insurance (OFEGLI) within the 31-day time limit for

converting.

Your agency must also give you an Agency Certification of Insurance Status (SF 2821). Send

that form to OFEGLI along with the SF 2819. If you do not have the SF 2821, do not delay in

sending the SF 2819. Go ahead and send the SF 2819. You should request a completed SF 2821

from your agency before the expiration of the 31-day time limit and forward it to OFEGLI.

OFEGLI needs the SF 2821 to calculate the amount of insurance you can convert.

Once OFEGLI has received your SF 2819 and SF 2821, it will send you a list of insurance

companies that are offering conversion policies in your area. You must contact the companies to

get information on the conversion policy and the cost.

Notes:

 The address on the SF 2819 is not be current. The correct address is: OFEGLI, P.O.

Box 8149 Long Island City, NY 11101-8149.

 In Block #4, if you have Option C, your agency should indicate the multiples you have

the day your insurance terminates.

 If you receive an SF 2819, that means that you are eligible to convert your insurance, but

you don't need to — the choice is yours. IF you qualify to carry your coverage into

retirement, you may want to do that and not convert. Just because you receive an

 SF 2819 does not mean that you do not qualify to carry your coverage into retirement. All

employees whose current coverage as an employee is terminating (other than by

voluntary cancellation) receive a copy of that form — whether or not they qualify to

carry coverage into retirement.

 In addition, if you don’t receive the SF 2819 promptly, IT IS YOUR RESPONSIBILITY

to take action to obtain the necessary information to convert your coverage. Contact

OFEGLI immediately to let them know you are interested in obtaining conversion

information.

 If you have assigned your insurance, your agency must give the SF 2819 to your

assignee(s). The right to convert transfers to your assignee(s). If you have Option C,

your agency must also give an SF 2819 to you. The right to convert Option C stays with

you.

You can find additional information on converting your insurance on the SF 2819 “Notice of

Conversion Privilege”.

CONVERSION FOR FAMILY MEMBERS

 Upon Your Death

 Upon Your Separation

 Amount Available to Convert

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 When Conversion Is Not Permitted

 When Insurance Has Been Assigned

Upon Your Death

When you die, your family members covered under Option C are eligible to convert their

coverage to individual policies.

The conversion policies do not include “family” policies similar to the FEGLI Program’s

Option C. Each eligible family member may convert to an individual policy. In the case of a

minor child, a parent may apply on the child’s behalf for an individual policy.

Your employing office must send your family members a Notice of Conversion Privilege

(SF 2819). In Block #4, your agency should indicate the multiples of Option C coverage you

have the day your insurance terminates. Your employing office must send the SF 2819 to your

last address on file, addressed to “The Family Members of . . . .” The employing office does not

have to try to locate family members who might not have lived with you at the time of your

death.

Family members wishing to convert must send the SF 2819 to OFEGLI within the 31-day time

limit for converting.

Upon Your Separation

When you separate from service, you may convert any or all of your FEGLI coverage. If you

choose not to convert your Option C coverage, your family members may convert their coverage

to individual policies.

The conversion policies do not include “family” policies similar to the FEGLI Program’s Option

C. Each eligible family member may convert to an individual policy. In the case of a minor

child, a parent may apply on the child’s behalf for an individual policy.

If your family members are interested in converting their coverage, they must contact your

former agency employing office. Your employing office must send your family members a

Notice of Conversion Privilege (SF 2819) if they request information about converting. Your

family members must then send the SF 2819 to OFEGLI within the 31-day time limit for

converting.

Amount Available to Convert

Your spouse and eligible children may convert up to the amount of Option C coverage you

carried (maximum $25,000 for your spouse and $12,500 for each eligible child).

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When Conversion Is Not Permitted

Family members do not have the right to convert their coverage when they lose eligibility for any

reason, such as the following:

 Your divorce or annulment;

 Your child reaches age 22;

 Your child marries; or

 Your stepchild or foster child moves out of your home

When You Have Assigned Your Insurance

The right to convert Option C remains with you and your family members, even if the rest of

your insurance has been assigned.

EMPLOYING OFFICE RESPONSIBILITIES

 Notice of Conversion Privilege (SF 2819)

 Agency Certification of Insurance Status (SF 2821)

 Timing

Notice of Conversion Privilege (SF 2819)

Your employing office must give you (or your assignee(s) or a power of attorney acting on your

behalf) an SF 2819 “Notice of Conversion Privilege” whenever your coverage terminates. In

Block #4, your agency should indicate the multiples of Option C coverage you have the day your

insurance terminates. Exception: If you are transferring to a FEGLI eligible position in another

agency within three calendar days after your termination, your employing office does not need to

issue an SF 2819.

Your employing office must record in your Official Personnel Folder (or its equivalent) the

names and addresses of everyone who is given an SF 2819, including your assignees and family

members covered under Option C. Your employing office must send this information to your

retirement system, if your separation is for retirement.

Your employing office must not furnish insurance companies with the name of any employee

being separated with possible conversion rights.

If you have Option C coverage, your employing office must send an SF 2819 to your eligible

family members when you die. The form should be addressed to “The Family Members of . . . .”

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If you separate from service and choose not to convert your Option C coverage, your employing

office must send an SF 2819 to your eligible family members if they contact the employing

office to request information on converting.

Agency Certification of Insurance Status (SF 2821)

Whenever your insurance terminates, your employing office must complete an Agency

Certification of Insurance Status (SF 2821) and give it to you (or your assignee(s)).

In block #13a on the SF 2821, your agency should indicate the multiples of Option C coverage

you have on the day your insurance terminates. Exception: If you are transferring to a FEGLI

eligible position in another agency within three calendar days after your termination, your

employing office does not need to complete an SF 2821.

Timing

It is imperative your employing office give you (or your assignee(s)) the Notice of Conversion

Privilege (SF 2819) either immediately before or immediately after the event causing your

coverage to terminate. Note: This form must be given to you when you are retiring, even if you

choose to continue life insurance coverage into retirement. (See “Procedures for Retiring

Employees”).

Your employing office must place a copy of the SF 2819 in your Official Personnel Folder (or its

equivalent) as proof that the required notice was provided. The date the SF 2819 is issued is also

required for completion of Block 9 on the SF 2821.

TIME LIMIT ON CONVERSION

 Time Limit for Converting

 Belated Conversions

 Effective Date of Conversion Policy

 If You Return to Federal Service

Time Limit for Converting

If you are interested in converting, you must complete Part C of the Notice of Conversion

Privilege (SF 2819) and send it to OFEGLI at P.O. Box 8149, Long Island City, NY 11101-

8149. (Note: This address is different from the address on the SF 2819.) Your SF 2819

must be received within 31 days of your (or your family member(s), in the case of Option C)

receipt of the Notice of Conversion Privilege (SF 2819), or within 60 days after the date of the

terminating event, whichever is earlier.

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Belated Conversions

If your employing office fails to give you the required conversion notice on time or you are

unable to request conversion on time for reasons beyond your control, you can request a belated

conversion by writing to OFEGLI at P.O. Box 8149, Long Island City, NY 11101-8149.

You must mail the request to OFEGLI within six months after the date you first became eligible

to convert. The request must show that:

 You were not notified of the loss of coverage and the right to convert and were not

otherwise aware of it; or

 You were not able to convert on a timely basis because of reasons beyond your control

If six months or more have passed since the date you first became eligible to convert, OFEGLI

cannot accept a request for conversion. If your request is approved, you must convert within 31

days of that determination.

Effective Date of Conversion Policy

Your conversion policy is effective at the end of your 31-day extension of coverage. If this is

retroactive, you must pay premiums back to that date.

Example # 1

Kathleen entered nonpay (LWOP) status 3/15/2012. Her FEGLI coverage terminated after 365

days LWOP, or 3/14/13. Her agency issued her conversion notice to her 3/25/13. She has 31

days from the date of the notice, or 4/24/13, to contact OFEGLI about converting her coverage.

Example # 2

Chris entered nonpay (LWOP) status 9/21/11. His FEGLI terminated after 365 days LWOP, or

10/20/12. His agency issued his conversion notice to him 11/6/12. He has 15 days to convert his

coverage since he has until no later than 60 days from the date of the event, or 11/21/12, to

contact OFEGLI about converting his coverage.

Example # 3

Elaine resigned. Her last day of Federal service was 6/14/13. Her FEGLI terminates that day,

with a 31-day extension of coverage through 7/15/13. Zelda’s agency did not give her the SF

2819 until 10/15/13. Zelda does not have the right to convert her insurance since it is more than

60 days from the termination date on 6/14/13. She has the right to request a belated election

since it is within six months of the termination date. She must send the SF 2819 to OFEGLI. If

they approve her belated request, and she converts, her conversion policy will be effective

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7/16/13, the day after the end of her 31-day extension of coverage. She will have to pay

premiums retroactive to that date.

Belated conversions are made retroactive to the end of the 31-day extension, and you must pay

the retroactive premiums. There are no exceptions to the requirement to pay retroactive

premiums.

Your family members’ conversion is effective at the end of your 31-day extension of coverage.

If this is retroactive, they must pay premiums back to that date.

If You Return to Federal Service

If you have converted your FEGLI coverage and return to Federal service (including as a

reemployed annuitant), you do not have to cancel your conversion policy, although you can if

you wish.

TERMINATION OF ANNUITANTS’ AND

COMPENSATIONERS’ INSURANCE

 Annuitants

 Compensationers

Annuitants

If your annuity terminates, your FEGLI terminates on the same date. You do not get the 31-day

extension of coverage or right to convert.

Compensationers

If the Department of Labor finds that you are able to return to duty, your FEGLI terminates on

the date of the finding. You do not get the 31-day extension of coverage or right to convert.

If you return to service in a FEGLI eligible position, you will get FEGLI again as an employee

and your FEGLI with the Department of Labor stops. Your FEGLI coverage will be based on

the salary in your current position. If you return to a part-time position at the agency or are

otherwise reemployed, your FEGLI coverage conveys to your agency employment, and it is

treated as if you are a reemployed annuitant.

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HISTORICAL INFORMATION

 Active Duty Military Service

 Portability

 Power of Attorney

Active Duty Military Service

By law, from August 1956 until June 1986 FEGLI terminated whenever an employee entered on

active military duty.

Portability

From April 1999 until April 2002 employees with Option B whose group coverage terminated

due to separation or completion of 12 months in nonpay status could elect to port (continue) their

coverage by making direct premium payments to a Portability Office. This was a 3-year

demonstration project. The three-year portability demonstration project expired in 2002 and

employees are no longer eligible to elect portability.

Power of Attorney

Effective October 1, 2010, if an employee is unable to convert, a person having power of

attorney for that employee may convert on his or her behalf.

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ANNUITANTS AND COMPENSATIONERS

 Eligibility for Life Insurance

 Qualifying Retirement Systems

 Amount of Life Insurance

 Post-65 Reduction in the Amount of Coverage – Basic Insurance

 Post-65 Reduction in the Amount of Coverage – Optional Insurance

 Procedures for Retiring Employees

 While Retirement Claim Is Pending

 Reemployed Annuitants

 Procedures for Compensationers

 Termination and Reinstatement

 Historical Information

ELIGIBILITY FOR LIFE INSURANCE

 Basic Insurance – Annuitants

 Break in Service

 MRA+10 Annuitants

 Basic Insurance – Compensationers

 Optional Insurance

 Who Makes the Determination?

 No Waivers

 Accidental Death and Dismemberment Coverage

Basic Insurance – Annuitants

When you retire, you are eligible to continue Basic insurance – or have it reinstated – if you meet

all of the following requirements:

 You are entitled to retire on an immediate annuity under a retirement system for civilian

employees (including an MRA +10 annuity);

 You have been insured for the 5 years of service immediately before the date your

annuity starts, or for the full period(s) of service during which you were eligible to be

insured if less than 5 years (called the “all opportunity” requirement);

 You are enrolled in FEGLI on the date of retirement; and

 You have not converted your life insurance coverage to an individual policy. (If you

have already converted the coverage before it is determined that you’re eligible to

continue your coverage, you must void the conversion policy. To void the conversion

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policy, contact the insurance company. That company will send you a refund of any

premiums you have already paid for the conversion policy.)

Notes:

 An immediate annuity is one that begins within 30 days after the date you separate from

service for retirement.

 Any other life insurance your agency may offer in addition to or in lieu of FEGLI does

not count toward the 5-year requirement. Only FEGLI coverage counts for meeting the

5-year requirement.

Breaks in Service

Breaks in service are not counted when determining the 5 years of service requirement (because

the individual was not eligible to be enrolled in FEGLI during the break in service).

Example 1

Aaron elected Basic insurance when he first became employed on 2/7/83. He resigned 9/30/00,

and returned to Federal service 8/24/10. When he returned to service, he did not make a new

election and got back the same coverage he had before he separated on 9/30/00-Basic only. He

retired 12/31/13. The break in service between 9/30/00 and 8/23/10 didn’t count against Aaron

in determining his eligibility to continue FEGLI. The five years of service needed to continue

FEGLI in Aaron’s case are 8/24/10 – 12/31/13 and 1/30/99-9/30/00. Since he had Basic

insurance during that time, Aaron met the 5-year requirement for continuing his coverage into

retirement.

Example 2

Amy waived all FEGLI when she was first employed in 1973. She left Federal service in 2003

and returned to service in 2011. When she returned to service, she was automatically enrolled in

Basic insurance her very first day. She retired 11/30/12. Amy did not meet the 5-year

requirement for continuing her FEGLI coverage (she waived it back in 1973). Her “first

opportunity” to enroll was in 1973. Since she did not have the coverage for the full period of

service it was available to her, she also didn’t meet the all-opportunity requirement. Therefore,

Amy was not eligible to continue any of her FEGLI coverage into retirement.

Example 3

Bob began working for the Federal Government in 1975 and had Basic insurance from the day

he started. During the 1981 open season he elected 4 multiples of Option B. He left Federal

service in 1995. In 2013 Bob applied for a deferred annuity under CSRS. Since he did not retire

on an immediate annuity, Bob was not eligible to have FEGLI in retirement.

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MRA+10 Annuitants

An annuity you receive under the Minimum Retirement Age (MRA)+10 provision of FERS also

qualifies as an immediate annuity, even though you separated from service and postponed receipt

of your annuity. A postponed MRA+10 annuity is not the same thing as a deferred annuity.

Effective January 11, 1990, your insurance will be reinstated when you retire under the FERS

MRA+10 provision (as long as you are otherwise eligible to continue your enrollment).

Basic insurance stops at the end of the day on which you separate. You get the 31-day extension

of coverage, and your employing office must give you an SF 2819 (Notice of Conversion

Privilege) for conversion purposes.

If you later apply for retirement and are eligible to continue Basic insurance, the Office of

Personnel Management will send you a notice of eligibility and an SF 2818 (Continuation of Life

Insurance Coverage As An Annuitants and Compensationers). If you wish to have other than 75

Percent Reduction for Basic insurance, you must return the completed SF 2818 within 60 days

after OPM mails the form. Basic insurance will be reinstated effective the date your annuity

starts or the date OPM receives your application for annuity, whichever is later.

Basic Insurance – Compensationers

During your first 12 months in nonpay status while you are receiving workers’ compensation

from the Department of Labor, you remain covered as an employee.

When you separate from service or end 12 months of nonpay status (whichever happens first),

your FEGLI as an employee stops. However, you may be able to continue your life insurance as

a compensationer. You may continue it if you meet all of the following requirements:

 On the day you separate from service or on the day you end 12 months of nonpay status,

you are still receiving compensation payments;

 The Department of Labor has determined that you are unable to return to duty;

 You have been insured for the 5 years of service immediately before the date

compensation starts, or for the full period(s) of service during which you were eligible to

be insured if less than 5 years; and

 You have not converted your life insurance coverage to an individual policy. (If you

have already converted the coverage before it is determined you are eligible to continue

your coverage, you must void the conversion policy. To void the conversion policy,

contact the insurance company. That company will send you a refund of any premiums

you have already paid for the conversion policy.)

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Note: The year of continued coverage while in nonpay status cannot be counted toward meeting

the 5-year requirement. You must meet the 5-year/all-opportunity requirement as of the date

compensation begins.

Example 1

Beatrice elected Basic insurance only when she became employed in 1988. In June 2012

Beatrice was hurt in an accident at work and began receiving compensation; she separated from

service in November 2012 and continued receiving compensation. Since Beatrice was insured

for the 5 years of service immediately before the date that compensation started, she was eligible

to continue her FEGLI as a compensationer.

Example 2

Conrad waived all FEGLI when he became employed in 1990. During the 2004 Open Season he

elected Basic insurance; the coverage was effective 9/04/05. In September 2007 Conrad was

injured in an on-the-job accident and began receiving compensation. Since Conrad did not meet

the 5-year or all-opportunity requirement at the time his compensation began, he was not

eligible to continue coverage as a compensationer. However, Conrad’s FEGLI continued while

he was in nonpay status for a year. In September 2008, at the end of his year in nonpay status,

Conrad’s FEGLI terminated since he did not meet the 5-year/all-opportunity requirement. .

Optional Insurance

If you are eligible to continue (or have reinstated) Basic insurance, you are also eligible to

continue (or have reinstated) Optional insurance if you meet the same coverage requirements for

Optional insurance as those for Basic insurance.

For the purpose of continuing insurance as an annuitant or compensationer, you are not

considered to have been eligible for Option C during any period when you had no eligible family

member.

Example # 1

Cindy elected Basic insurance only when she first became employed in 1975. She elected 2

multiples of Option B during the 2004 open season and 5 multiples of Option B in 2012 due to a

life event. She retired 12/31/12. Cindy met the 5-year requirement for her Basic insurance and

for the first 2 multiples of her Option B; however she did not meet the 5-year or all-opportunity

requirement for her last 3 multiples of Option B coverage. Therefore Cindy was eligible to

continue only her Basic insurance and 2 multiples of Option B into retirement.

Example # 2

Ed was single and elected Basic insurance when he first became employed in 1972; he never had

any children. Ed married for the first time 10/16/11 and elected 1 multiple of Option B and 5

multiples of Option C. He retired 11/3/12. Ed met the 5-year requirement for Basic insurance.

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Since he never had any eligible family members until his 2011 marriage, he met the all-

opportunity requirement to continue his Option C. However, he didn’t meet either the 5-year or

the all-opportunity requirement for his Option B coverage. Therefore he was eligible to continue

Basic insurance and 5 multiples of Option C into retirement.

Who Makes the Determination?

For both annuitants and compensationers, OPM makes the final determination as to whether you

are eligible to continue life insurance coverage.

No Waivers

There are no waivers of any of the requirements to carry life insurance into retirement or as a

compensationer. There are no exceptions to the “no waiver” rule – it does not matter whether

you retire on disability, accept a voluntary incentive payment, etc. The only way to continue

coverage into retirement is to meet the 5-year/all opportunity rule. This is different from the

Federal Employees Health Benefits (FEHB) Program, which does allow for waivers under

exceptional circumstances.

If you are not eligible to continue your coverage into retirement, you may convert to a private

nongroup policy.

Accidental Death and Dismemberment Coverage

Insurance coverage you continue as an annuitant or compensationer does not include Accidental

Death & Dismemberment coverage.

QUALIFYING RETIREMENT SYSTEMS

 Type of System

 Qualifying Systems

 Certification of Insured Employee's Retirement Status

 Notifying OPM of a Retiree’s Death under a Qualifying Retirement System

Type of System

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For FEGLI purposes, you must retire under a civilian retirement system for Federal or District of

Columbia Government employees.

Qualifying Systems

Civilian systems include, but are not limited to, the following:

 Civil Service Retirement System (CSRS)

 Federal Employees’ Retirement System (FERS)

 Board of Governors of the Federal Reserve System

 Tennessee Valley Authority System

 Foreign Service Retirement System

 Foreign Service Pension System

 CIA Retirement System

 Public School Teachers of the District of Columbia System

 Policemen and Firemen of the District of Columbia System

 National Oceanic and Atmospheric Administration System

 Officers of the Public Health Service System

 Lighthouse Retirement System

 Federal Judiciary Retirement System

 Judiciary of the Territories Retirement System

 Teachers Insurance Annuity Association and Collegiate Retirement Equities Fund

Retirement System

 Nonappropriated Funds Retirement System

 Financial Institutions Retirement Fund System

 U.S. Tax Courts Judges Retirement System

 Military Court of Appeals Judges Retirement System

 U.S. Court of Veterans Appeals Judges Retirement System

 District of Columbia Courts Judges Retirement System

Certification of Insured Employee's Retired Status

If you retire under a system other than CSRS or FERS, the administering agency/office of that

system must certify your retirement status to the Office of Personnel Management on the SF

2820 (Certification of Insured Employee's Retired Status).

OPM will then determine whether or not you meet the requirements for continuing insurance as

an annuitant. OPM will notify both you and the administering agency/office of our decision. If

you are eligible to continue coverage, OPM’s Retirement Operations Center will maintain your

life insurance file. You will be given a CSI (“Civil Service Insurance)” file number and a letter

explaining the value of your life insurance. The duplicate copy of the SF 2820 will be sent back

to the administering agency of the retirement system.

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Notifying OPM of a Retiree’s Death under a Qualifying Retirement

System

If you die as a retiree insured under a system other than CSRS or FERS, your survivors must

inform the administering agency of the retirement system of your death. Your retirement system

will notify OPM. Your retirement system does this by completing the Agency Report of

Termination of Retired Status (bottom block) on the form SF 2820 (or on its prior version- SF

49) and preparing a letter/memo with the name of the deceased and the date of death. Your

retirement system must fax or send this information to OPM, Survivor Processing Branch. The

fax number is 724-794-1263. The address is: OPM, Retirement Operations Center, PO Box 45,

Boyers, PA 16017-0045.

Once OPM’s Retirement Office learns of the death, they will send an FE-6 (Claim for Death

Benefits) to whomever appears eligible for benefits. They will also send the necessary

certification to the Office of Federal Employees’ Group Life Insurance (OFEGLI).

The FE-6 should be completed and sent along with a certified copy of the death certificate to

OFEGLI, P.O. Box 6080, Scranton PA 18505-6080. The address for overnight deliveries is

OFEGLI at 123 Wyoming Avenue, 3rd Floor, Scranton PA 18503.

AMOUNT OF LIFE INSURANCE

 Amount of Basic Insurance

 Amount of Optional Insurance

Amount of Basic Insurance

The amount of Basic insurance you can continue as an annuitant or compensationer, if eligible, is

your Basic Insurance Amount (BIA) on the date of your separation for retirement or the

completion of 12 months nonpay status, whichever is earlier.

Amount of Optional Insurance

The amount of Option A insurance you can continue as an annuitant or compensationer, if

eligible, is $10,000.

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The number of multiples of Option B and Option C insurance you can continue as an annuitant

or compensationer, if eligible, is the number of multiples that meet the 5-year/all-opportunity

requirement (or you can choose fewer multiples).

POST- 65 REDUCTION IN THE AMOUNT OF

COVERAGE – BASIC INSURANCE

 Election for Basic Insurance

 Default Election

 How the Reduction Works

o 75 Percent Reduction

o 50 Percent Reduction

o No Reduction

 When the Reduction Starts

 Change of Election

 Judges

Election for Basic Insurance

If you are eligible to continue your Basic insurance as an annuitant or compensationer, you must

complete an SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or

Compensationer). On this form, you choose whether you want to continue your Basic life

insurance into retirement or choose compensation. If you choose to continue your Basic

insurance, you must elect the amount of Basic insurance you want to keep after age 65 (or

retirement, if it is later). The choices are 75 Percent Reduction, 50 Percent Reduction, or No

Reduction.

Notes:

 If you do not want to continue your Basic insurance into retirement, you must show this

on the SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or

Compensationer); do not complete an SF 2817 (Life Insurance Election) to cancel your

coverage.

 If you choose not to continue your Basic insurance, you cannot continue any of your

Optional insurance.

 If you choose to continue your Basic insurance, you must elect No Reduction if you

previously elected a partial living benefit.

 See the section on “Amount of Withholding for Annuitants and Compensationers” for

how your election affects your premiums.

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Default Election

If you don't make an election regarding the post-65 reduction, you will automatically have the 75

Percent Reduction (unless you previously elected a partial living benefit).

How the Reduction Works

75 Percent Reduction

If you elect a 75 Percent Reduction, when you turn 65 or retire (whichever is later), your Basic

insurance coverage reduces by 2 percent of the BIA each month until the amount has been

reduced by 75 percent. When the reduction is complete, the remaining 25 percent of the BIA is

payable as a death benefit.

Example

Emma retired with a final salary of $54,365, so her BIA was $57,000. She elected 75 Percent

Reduction. When Emma reaches age 65, the amount of her Basic insurance in force will reduce

by $1,140 each month ($57,000 x 2 percent).This coverage will be free for the remainder of her

life. The reduction will continue until $14,250 of her BIA remains ($57,000 x 25 percent). This

is the amount that will be payable if Emma dies after the full reduction has been reached.

50 Percent Reduction

If you elect a 50 Percent Reduction, when you turn 65 or retire (whichever is later), your Basic

insurance coverage reduces by 1 percent of the BIA each month until the amount has been

reduced by 50 percent. When the reduction is complete, the remaining 50 percent of the BIA is

payable as a death benefit.

Example

Floyd retired with a final salary of $59,750, so his BIA was $62,000. He elected 50 Percent

Reduction. When Floyd reaches age 65, the amount of his Basic insurance in force will reduce

by $620 each month ($62,000 x 1 percent). He will continue to pay a premium for the 50 Percent

Reduction. The reduction will continue until $31,000 of his BIA remains. This is the amount that

will be payable if Floyd dies after the full reduction has been reached.

No Reduction

If you elect No Reduction, your Basic insurance coverage does not reduce when you turn 65 or

retire (whichever is later). The full BIA is payable as a death benefit.

Example

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Elaine retired with a final salary of $47,750, so her BIA was $50,000. She elected No Reduction.

When Elaine reaches age 65, the amount of her Basic insurance in force will not reduce. She will

continue to pay a premium for the No Reduction coverage. This is the amount that will be

payable when Elaine dies.

When the Reduction Starts

The 75 percent reduction or 50 percent reduction starts at the beginning of the 2

month after

your 65

birthday or the beginning of the 2

month after your retirement, whichever is later.

Example # 1

Faye retired in 2000 with a final salary of $57,899, so her BIA was $60,000. She elected 75

Percent Reduction and turned 65 on 3/15/12. The amount of Faye’s Basic insurance in force

reduces by $1,200 each month ($60,000 x 2 percent) starting with her 5/1/12 annuity payment.

Example # 2

George retired 10/3/12 at age 67 with a final salary of $61,288, so his BIA was $64,000. He

elected 50 Percent Reduction. The amount of George’s Basic insurance in force reduces by

$640 each month ($64,000 x 1 percent) starting with his 12/1/12 annuity payment.

Change of Election

You may make certain changes to your reduction election for Basic insurance. They are shown

in the following table and discussed in more detail after the table:

You (or your

assignee) can

change Basic

insurance from

To 75 Percent

Reduction

To 50 Percent

Reduction

To No Reduction

75 Percent

Reduction

Not applicable

50 Percent

Reduction

Yes

Not applicable

No Reduction

Yes (unless you

elected a partial living

benefit)

Not applicable

If you elect 75 Percent Reduction, you cannot change the election.

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If you elect 50 Percent Reduction or No Reduction, you may cancel this election at any time.

You will then get 75 Percent Reduction. Exceptions:

 If you have assigned your insurance, you cannot cancel your election of 50 Percent

Reduction or No Reduction. Only your assignee(s) can cancel your election.

 If you elected a partial living benefit, you must elect No Reduction for your Basic

insurance. You cannot later cancel that election. If you assigned your remaining

coverage after electing a partial living benefit, your assignee(s) cannot cancel your

election of No Reduction.

If you change your 50 Percent Reduction election or No Reduction election, by law the amount

of your Basic insurance remaining switches automatically to the amount that would be in effect

if you had elected 75 Percent Reduction initially at time of retirement. You do not get a refund

of the additional premiums you paid for the higher level of coverage during the time you had it.

If you elect 50 Percent Reduction, you cannot change the election to No Reduction.

If you wish to change your election, send your request in writing (phone calls, faxes, or emails

are not acceptable) to OPM's Retirement Operations Center at P.O. Box 45, Boyers, PA 16017-

0045. You also may call 1-888-US-OPM-RET (1-888-767-6738) for more information on the

amount of your coverage and instructions for how to change or cancel your current coverage.

See the chapter on “Assignment” for information on the effect of an assignment on elections and

changes of elections.

Judges

Judges retiring under one of the following provisions are considered employees for FEGLI

purposes:

 28 U.S.C. 371(a) or (b);

 28 U.S.C. 372(a);

 28 U.S.C. 377

 26 U.S.C. 7447;

 11 D.C. Code 776; or

 Internal Revenue Code, section 7447.

Basic insurance continues without interruption or reduction, and without payment of additional

premiums for No Reduction, upon retirement. For judges choosing to receive compensation

instead of an annuity, Basic and Optional insurance reduce in the same manner as for other

compensationers.

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POST-65 REDUCTION IN THE AMOUNT OF

COVERAGE – OPTIONAL INSURANCE

 Option A

 Options B and C

 Default Election

 Full Reduction

 No Reduction

 When the Reductions Start

 How to Make the Election

o Initial Election

o At Age 65

 Can I Change My Election?

 What Is the Difference between Canceling a Multiple and Changing to Full

Reduction?

 What If I have Assigned My Insurance?

 Judges

Option A

The amount of Option A automatically reduces when you reach age 65 (or retire, if later). There

is no election to be made.

The amount of coverage reduces by 2 Percent ($200) each month until the amount has been

reduced by 75 Percent. Only 25 Percent of the original amount ($2,500) is payable as a death

benefit once the full reduction has been reached.

Options B and C

You will be given the opportunity to make an election regarding post-65 reductions for Option B

and Option C. At the time you retire or become insured as a compensationer, you must:

 Elect how many Option B and C multiples you currently have as an employee you wish

to continue into retirement; and

 Choose whether to have all of those multiples reduce (“Full Reduction”) or none of them

reduce (“No Reduction”) when you reach age 65 (or retire, if later). You may also elect

Full Reduction for some multiples and No Reduction for other multiples of your Option

B and/or Option C coverage.

If you choose to continue fewer multiples than you are eligible to continue, you must indicate

this on the SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or

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Compensationer). You should not complete an SF 2817 (Life Insurance Election) to cancel any

of your insurance at retirement.

You do not have to make the same choice for both Option B and Option C. You may choose

Full Reduction for one type of insurance and No Reduction for the other type of insurance if you

wish, and different multiples for each.

Default Election

If you do not make an election, you will automatically continue all multiples for which you are

eligible and will get Full Reduction for all multiples.

Full Reduction

If you choose Full Reduction, the value of each multiple of Option B and/or Option C reduces by

2 Percent of the original amount each month until the amount has been reduced by 100 Percent.

The insurance stops at 12:00 p.m on the day before the 50

reduction; after that no benefits are

payable upon your death (for Option B) or your family member's death (for Option C).

If you elect Full Reduction, your Option B and/or Option C is free once the coverage starts to

reduce.

Example

Gwen retired with 3 multiples of Option B, each worth $70,000; she elected Full Reduction for

all of her multiples. When Gwen reaches age 65, the value of each multiple will reduce by

$1,400 each month ($70,000 x 2 Percent); the coverage will be free once it starts to reduce. The

reduction will continue until there is no coverage left under Option B. No Option B will be

payable if Gwen dies after the full reduction has been reached. Since Gwen has 3 multiples of

Option B, the amount of her Option B at retirement equals $210,000. It will reduce $4,200 each

month ($210,000 x 2 Percent).

No Reduction

If you choose No Reduction, your Option B and/or Option C coverage will not reduce at all.

After age 65 (or retirement, if that’s later), you will continue to pay premiums appropriate to

your age group. See “Cost of Optional Insurance” for optional insurance premiums for your age

group.

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Example

Henry retired with 5 multiples of Option C and elected No Reduction for all of his multiples.

When Henry reaches age 65, the full amount of his Option C coverage will remain in effect. He

will continue to pay premiums appropriate to his age group.

When the Reductions Start

The reductions start at the beginning of the 2

month after your 65

birthday or the beginning of

the 2

month after your retirement, if that’s later.

How to Make the Election

Initial Election

When you retire or become insured as a compensationer, you must make your election on the SF

2818 (Continuation of Life Insurance Coverage As An Annuitant or Compensationer). Your

employing office will include the completed SF 2818 with the retirement package when it

submits the package to OPM.

At Age 65

Shortly before you reach age 65, your retirement system (or OWCP, for compensationers) will

send you a letter reminding you of your initial election and asking if you want to make any

changes. At that time you can choose to change your initial election and have some multiples of

Option B and/or Option C (as applicable) coverage reduce and others not reduce. If you wish to

change your initial election, return the letter to OPM’s Retirement Operations Center with your

new “Age-65” election. If you wish to retain your initial election of coverage, do nothing. You

do not have to return the letter. Your original election will remain unchanged. The following

section has a chart showing what changes you can make.

Can I Change My Election?

You may make certain changes. They are shown in the following tables and discussed in more

detail after the tables:

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OPTION B

Can change from

You

Your assignee

Full Reduction to No

Reduction—if you are

under age 65

Yes

Full Reduction to No

Reduction—if you are age

65 or older

No Reduction to Full

Reduction—if you are

under age 65

Yes, unless you assigned your

insurance

Yes

No Reduction to Full

Reduction—if you are age

65 or older

Yes, unless you assigned your

insurance

Yes

OPTION C

Can change from

You

Your assignee

Full Reduction to No

Reduction—if you are

under age 65

Yes

Not applicable (you cannot

assign Option C)

Full Reduction to No

Reduction—if you are age

65 or older

N/A

No Reduction to Full

Reduction—if you are

under age 65

Yes

N/A

No Reduction to Full

Reduction—if you are age

65 or older

Yes

N/A

Before you reach age 65, you may change from No Reduction to Full Reduction at any time.

Exception: If you have assigned your insurance, only your assignee(s) may change from No

Reduction to Full Reduction for your Option B coverage.

Before you reach age 65, you may change any number of multiples from Full Reduction to No

Reduction at any time.

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Example

Heidi retired in October 2005 at age 55. She had 2 multiples of Option B and 5 multiples of

Option C. She elected No Reduction for her Option B and Full Reduction for her Option C. In

March 2013 at age 63 Heidi decides she wants to change 2 of her Option C multiples to No

Reduction. She can make this change now, or wait until she receives her “Age-65” letter in two

years.

You may change from No Reduction to Full Reduction at any time. When you reach age 65 you

also may choose to change some of your initial multiple elections and have some multiples of a

particular type of insurance reduce and other multiples not reduce. Exception: If you have

assigned your insurance, only your assignee(s) may change from No Reduction to Full Reduction

for your Option B coverage. If you change to Full Reduction after you reach age 65, the amount

of insurance remaining switches automatically to the amount that would be in effect if you had

elected Full Reduction originally. You do not get a refund of the premiums you paid after age

65.

After you reach age 65, you cannot change from Full Reduction to No Reduction.

Example

Isaac retired in 2006 at age 60 with 5 multiples of Option B, each worth $45,000; he elected No

Reduction for all 5 multiples. Isaac turned 65 in February 2011. In August 2011 Isaac decided

to change 4 of his multiples to Full Reduction and keep 1 multiple at No Reduction. He notified

OPM, and his change was effective 9/1/11. By law, the value of 4 of Isaac’s Option B multiples

immediately dropped to $40,500 each ($45,000 x 2 Percent x 5 months = $4,500, subtracted

from the original $45,000 amount). The premium for these 4 multiples stopped. Isaac’s 5

multiple continued at the $45,000 amount, and Isaac continued to pay the premium for this

multiple.

What Is the Difference between Canceling a Multiple and Changing to

Full Reduction?

If you cancel a multiple, that coverage (and the premiums) stop right away; you do not get the

31-day extension and the right to convert. If you become reemployed, you will not automatically

get that coverage back. Unless you return to service and are reemployed in a FEGLI-eligible

position 180 days or more after the cancellation, you can only get the coverage back by one of

the methods discussed in the section on “Canceling a Waiver”. If you die after canceling a

multiple, no benefits are paid for that multiple.

If you change to Full Reduction, your coverage goes away gradually (2 Percent each month)

instead of all at once (unless it’s already been more than 50 months since your 65

birthday).

The reductions don't start (and premiums don't stop) until the 2

month after you reach age 65.

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If you die after changing a multiple to Full Reduction, benefits are paid on whatever amount of

that multiple is left at the time of your death.

What If I Have Assigned My Insurance?

If you have assigned your insurance, you (the insured) get to make the initial election regarding

Option B reductions, just as you do for Basic. (Option C isn't subject to assignment.) After you

have made the Option B election, you can change only from Full Reduction to No Reduction

(before you reach age 65); you cannot change from No Reduction to Full Reduction.

Only your assignee can change from No Reduction to Full Reduction; your assignee cannot

change from Full Reduction to No Reduction.

Judges

Judges retiring under one of the following provisions are considered employees for FEGLI

purposes:

 28 U.S.C. 371(a) or (b);

 28 U.S.C. 372(a);

 28 U.S.C. 377

 26 U.S.C. 7447;

 11 D.C. Code 776; or

 Internal Revenue Code, section 7447.

Optional insurance continues without interruption or reduction upon retirement. For judges

choosing to receive compensation instead of an annuity, Basic and Optional insurance reduce in

the same manner as for other compensationers.

PROCEDURES FOR RETIRING EMPLOYEES

 Forms

o SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or

Compensationer)

o SF 2819 (Notice of Conversion Privilege)

o SF 2821 (Agency Certification of Insurance Status)

 If You Wish to Continue Your Insurance

 If You Do Not Want to Continue Some or All of Your Insurance Into Retirement

 If You Wish to Convert Some or All of Your Insurance

 If You Are Not Eligible to Continue Life Insurance

 Disability Retirements

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Forms

SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or

Compensationer)

This is the form you complete to sign for each type of life insurance coverage you want to

continue in retirement. This is also the form on which you elect the type of post-65 reduction

you want for your Basic insurance (75 Percent Reduction, 50 Percent Reduction, or No

Reduction), Option B (Full Reduction or No Reduction), and Option C (Full Reduction or No

Reduction). All retiring employees with FEGLI coverage must complete this form. If you do

not complete the SF 2818 you will automatically get the lowest level of post-65 coverage (75

Percent for Basic insurance and Full Reduction for Option B and Option C).

You cannot newly elect coverage at the time of retirement on the SF 2818. If you are not sure

what coverage to elect, ask your personnel office to provide you information on the level of your

coverage. You can also check your most recent SF50 “Notification of Personnel Action”, your

leave and earnings statement, and/or your agency’s on-line system (as applicable) for this

information.

SF 2819 (Notice of Conversion Privilege)

Agencies must give this form to all retiring employees, even if you appear eligible to continue

your insurance. Some employees may choose to convert Option A insurance for several reasons:

to avoid the automatic reduction in the amount of coverage after age 65, or to convert coverage

to whole life or to another type of insurance that provides a paid-up value from which they can

borrow.

This is a two-part form. Part 1 goes to you; Part 2 goes to the retirement system. Agencies must

attach to Part 2 a list of everyone (names and addresses) to whom they gave or to whom they

sent the notice.

If you have assigned your insurance, your employing office must give the SF 2819 to your

assignee(s), rather than to you. If your employing office gives the form to you, you should give it

to the assignee. If you have Option C coverage, your employing office will give you an SF 2819

in case you want to convert that coverage and also will give your assignee(s) a separate SF 2819.

The form, along with the SF 2821 (Agency Certification of Insurance Status) must be issued to

you as soon as possible before or immediately after you retire, since you only have 31 days from

the date of the notice (or 60 days from the date of the event, whichever is earlier) to convert if

you so choose

Please note the address for OFEGLI on the SF 2819 form is not current. If you wish to

convert any of your coverage, the correct address to send the SF 2819 to is: OFEGLI, P.O. Box

8149, Long Island City, NY 11101-8149.

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SF 2821 (Agency Certification of Insurance Status)

Your employing office must complete this form for all retiring employees, unless you choose to

cancel all your insurance.

This form accompanies the SF 2819 (Notice of Conversion Privilege) and notifies your

retirement system of the types of coverage you have, the length of time you have had each type

of coverage, and your final salary.

This form requires two certifying signatures: One by a person with access to personnel records

and one with access to payroll records.

If You Wish to Continue Your Insurance

You must complete the SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or

Compensationer), and your agency employing office must complete the SF 2819 (Notice of

Conversion Privilege) and SF 2821 (Agency Certification of Insurance Status) as discussed.

Your employing office will attach these forms to your retirement application and send the

package to the office that administers your retirement system. For CSRS and FERS, that is

OPM. If you retire under another retirement system, they will send your FEGLI documentation

to OPM.

Note: Once you have retired, OPM’s Retirement Operations Center (ROC) becomes your

“agency employing office.” All records relating to your FEGLI are kept in that office, and any

questions or actions you want to take regarding your FEGLI coverage must be directed to that

office. This is true for all retired civilian employees, regardless of which retirement system

you retire under.

If you need to contact the ROC, the phone number is 1-88-US-OPM-RET (1-888-767-6738)

outside the Washington, D.C., metropolitan area or 202-606-0500 within the Washington area.

Annuitants should send written inquiries to the Retirement Operations Center, P.O. Box 45,

Boyers, PA 16017-0045.

Annuitants may also contact OPM by email at [email protected], or visit the OPM websites for

Retirement (www.opm.gov/retire) or FEGLI (www.opm.gov/healthcare-insurance/life-

insurance).

If You Do Not Want to Continue Some or All of Your Insurance into

Retirement

If you do not want to carry some or all of your life insurance coverage into retirement, you still

need to complete the SF 2818 (Continuation of Life Insurance Coverage). For each type of

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coverage you have, you must indicate on the SF 2818 whether or not you wish to continue it into

retirement.

If you do not continue your Basic insurance, you cannot continue any of your Optional

insurance.

If You Wish to Convert Some or All of Your Insurance

If you only want to convert some of your Optional insurance, your employing office will attach

the original of the SF 2821 to your retirement application. You must submit Part 2 of the SF

2821, along with a completed SF 2819 indicating which options you want to convert, to

OFEGLI.

If you want to convert all of your insurance, your employing office will give you both copies of

the SF 2821 (Agency Certification of Insurance Status) and an SF 2819 (Notice of Conversion

Privilege). Your employing office will keep any Designations of Beneficiary and court orders

directing payment of FEGLI benefits.

Please note that the address for OFEGLI on the SF 2819 form is not current. If you wish to

convert any of your coverage, the correct address to send the SF 2819 to is: OFEGLI, P.O. Box

8149, Long Island City, NY 11101-8149.

If You Are Not Eligible to Continue Life Insurance

Your employing agency will give you both copies of the SF 2821 (Agency Certification of

Insurance Status) and an SF 2819 (Notice of Conversion Privilege). Your employing office must

send all life insurance documents, including any Designations of Beneficiary and court orders

directing payment of FEGLI benefits, to OPM with your retirement papers. OPM will make the

final determination as to whether you are eligible to continue your FEGLI and will have all your

life insurance records in case any questions arise in the future concerning your coverage. If you

are not eligible to continue any of your life insurance into retirement, or you think you might not

be eligible, you can convert your coverage, but you must do so within 31 days of receiving your

employing agency’s notice or within 60 days of your retirement date, whichever is earlier.

If it appears you are eligible to continue some, but not all, of your FEGLI, your employing office

will give you Part 2 of the SF 2821, as well as the SF 2819, so that you may convert your

coverage if you wish.

If you have assigned your insurance, your employing office must give the SF 2819 to your

assignee(s), rather than to you. If your employing office gives the form to you, you should give

it to the assignee. If you have Option C coverage, your employing office will give you an SF

2819 in case you want to convert that coverage and will give your assignee(s) a separate SF

2819.

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If you convert your coverage, and OPM subsequently determines that you are eligible to

continue FEGLI into retirement, your FEGLI enrollment can be reinstated. You must ask the

insurance company to void your policy and refund the premiums you already paid for the

converted policy.

Disability Retirements under CSRS

If you apply for disability retirement under CSRS, and your employing office submits a

preliminary SF 2806 (CSRS Individual Retirement Record) or SF 3100 (FERS Individual

Retirement Record), it will submit all FEGLI paperwork, including the SF 2821 (Agency

Certification of Insurance Status), SF 2817s (Life Insurance Election), and SF 2823s or SF 54s

(Designation of Beneficiary) on file with the final SF 2806/3100, rather than with the application

for retirement.

Your employing office should note your insurance status in the “Remarks” section of the

preliminary SF 2806/3100 (Individual Retirement Record) as follows:

 Basic Life: Elected [75 Percent Reduction/50 Percent Reduction/No Reduction]

 Option A: [Waived/Eligible to continue: coverage began (date)/Not eligible to continue]

 Option B: [Waived/Eligible to continue: coverage began (date) – number of multiples

held during entire last 5 years/Not eligible to continue]

 Option C: [Waived/Eligible to continue: coverage began (date) – number of multiples

held during entire last 5 years/Not eligible to continue]

WHILE RETIREMENT CLAIM IS PENDING

 If You Die

 If Your Insurance Terminates

If You Die

If you die while your retirement claim is pending, a later determination that you were entitled to

an immediate annuity may establish insurance coverage at the date of your death (unless you did

not meet the requirements for continuing coverage into retirement). Exception: If your

insurance had terminated because of 12 months in nonpay status, approval of your annuity

application will restore your insurance coverage only if your annuity would have been effective

no later than 1 month after the end of the 12-month nonpay status period.

If Your Insurance Terminates

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If your insurance terminates while your retirement claim is pending, your employing office must

notify you of the conversion privilege. If your employing office does not notify you or notify you

in a timely manner, you have the right to contact OFEGLI directly to convert your coverage as

long as you contact them within six months of the termination.

Note: It is your responsibility to know when your coverage terminates, and your rights

concerning how and when to convert coverage.

If your retirement application is approved later, and you meet the requirements for continuing

insurance as an annuitant, your insurance will be reinstated automatically. If you converted your

coverage to an individual policy, you must ask the insurance company to void your policy and

refund the premiums you already paid for the converted policy.

Example

Josh entered nonpay status 6/16/11. He filed an application for disability retirement 8/10/11.

His initial application was denied, and he resubmitted his application 1/12/12. It was denied

4/05/12. By regulation, his FEGLI coverage later terminated 6/15/12 due to 365 days nonpay

status. Josh’s employing office did not issue the SF 2819(Notice of Conversion Privilege) or the

SF 2821 (Agency Certification of Insurance Status). On 9/14/12 Josh died. Josh had the right to

convert by contacting OFEGLI within six months of the termination of his coverage. Because he

did not do so, there is no life insurance payable after his death

REEMPLOYED ANNUITANTS

 Annuity Terminated by Reemployment

 Annuity Continued during Reemployment – Excluded Position

 Annuity Continued during Reemployment in Covered Position – Basic Insurance,

Option A, and Option C

 Annuity Continued during Reemployment in Covered Position – Option B

 Notifying the Retirement System of Your Reemployment

 Electing and Waiving Coverage

 If You Are in Nonpay Status While Reemployed

 Filing a Designation of Beneficiary, Assignment Form, or Court Order during

Reemployment

 If You Die during Reemployment

 If a Covered Family Member Dies while You are Reemployed

 When You Separate – No Supplemental Annuity or New Retirement Eligibility

 When You Separate with a Supplemental Annuity or New Retirement Eligibility

 If You Are Separating and Are Eligible to Continue Reemployment-Acquired Life

Insurance

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Annuity Terminated by Reemployment

If you are reemployed under conditions that terminate your annuity, the life insurance you

carried as an annuitant also terminates. There is no right to convert. You can get life insurance

as an employee, as long as you are employed in a covered position. Note: An annuity that is

suspended is not considered to be terminated.

Annuity Continued During Reemployment – Excluded Position

If your annuity continues during your reemployment, and you are employed in an excluded

position, all of your FEGLI coverage remains with your annuity. You cannot transfer your

coverage to your employment or elect new coverage as an employee.

Annuity Continued during Reemployment in Covered Position – Basic

Insurance, Option A, and Option C

When you are reemployed in a position that does not exclude FEGLI coverage, the Basic

insurance you carried as an annuitant is suspended. You do not have a choice. Your Basic

insurance coverage must be with your employing agency.

You automatically get Basic insurance just like any other employee. Withholdings are made

from your pay, even if you are over age 65. In addition, even if you are over age 65 your life

insurance coverage as an employee will not reduce. The post-65 reductions only affect

annuitants. Your employing office makes the Government contribution instead of OPM.

The amount of your Basic insurance is based on your salary as an employee, before reduction of

pay by the amount of your annuity. The coverage includes Accidental Death & Dismemberment

coverage.

When you have Option A and/or Option C as an annuitant, and you are reemployed in a position

that does not exclude coverage, the Option A and Option C insurance you carried as an annuitant

is also suspended. You automatically get Option A and Option C insurance as an employee.

There is no need to complete a new SF 2817 (Life Insurance Election). Withholdings are made

from your pay, even if you are over age 65. In addition, even if you are over age 65 your life

insurance coverage as an employee will not reduce. The post-65 reductions only affect

annuitants.

The amount of Option A is $10,000 and includes Accidental Death & Dismemberment

coverage. Each multiple of Option C is $5,000 for a spouse and $2,500 for an eligible child.

If you do not have Option A or Option C as an annuitant, you can elect it if you have been

separated from service for at least 180 days. If separated from service less than 180 days, then

any waiver of life insurance you made during your prior employment remains in effect.

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In addition, if you had Option A and/or Option C as an employee but were not eligible to

continue some or all of the coverage into retirement, you will get the coverage back upon your

reemployment in a covered position.

Annuity Continued During Reemployment – Option B

Option B is processed differently from Basic, Option A, and Option C.

When you have Option B as an annuitant and are reemployed in a position that does not exclude

coverage, you must be given the opportunity within 60 days of reemployment to choose whether

to keep Option B as an annuitant or have it as an employee.

If you wish to keep it as an annuitant, you don't have to take any action. You do not have to

complete another SF 2817 (Life Insurance Election). Withholdings will continue to be made

from your annuity (unless you are over age 65 and have elected Full Reduction).

If you want to have Option B as an employee, you must complete an SF 2817 (Life Insurance

Election) within 60 days after reemployment. You must sign for all the insurance you want, not

just Option B; any coverage not signed for will be cancelled. If you waive coverage as a

reemployed annuitant, you also waive your insurance with your retirement annuity. The amount

of Option B coverage will be based on your salary as an employee before reduction of pay by the

amount of your annuity. Withholdings will be made from your pay.

If you do not have Option B as an annuitant, you can elect it as an employee if you have been

separated from service for at least 180 days. If separated from service less than 180 days, then

any waiver of life insurance made during your prior employment remains in effect. If you have

fewer than 5 multiples of Option B as an annuitant and elect to have it as an employee, you can

increase the number of multiples, unless your break in service is less than 180 days.

Note: If you had Option B as an employee, but were not eligible to continue all of the multiples

into retirement, you will get back any multiples that terminated upon your retirement only if you

elect to have Option B as an employee. If you keep your Option B as an annuitant, you will not

get back any terminated multiples.

If you are a compensationer and return to work and you continue receiving compensation, your

FEGLI coverage is treated the same as if you are a reemployed annuitant. You get Basic,

Options A and C (if applicable) and if you have Option B you can choose to have it with your

reemployment, or remain with your compensation.

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Notifying the Retirement System of Your Reemployment

Your employing office must notify the applicable retirement system immediately upon your

reemployment, so your retirement system can immediately suspend the appropriate FEGLI

withholdings from your annuity.

The form to use for this notification is OPM Form 1482 (Agency Certification of Status of

Reemployed Annuitants). This form is used for CSRS, FERS, and, unless notified otherwise, the

other retirement systems listed in “Qualifying Retirement Systems.”

Effect of a New Waiver

Basic Insurance

If you file a waiver of Basic insurance as a reemployed annuitant, you also cancel the suspended

Basic insurance and all Optional insurance you had as an annuitant. You cannot get it back when

you leave employment.

Option A and Option C

If you file a waiver of Option A or Option C as a reemployed annuitant, you also cancel the

suspended Option A or Option C insurance you had as annuitant. You cannot get it back when

you leave employment.

Option B

If you elect to have Option B as an employee and later file a waiver of the Option B coverage,

this does not cancel your Option B. This transfers the coverage back to your annuity.

If this is what you want to do, you must complete an SF 2817 (Life Insurance Election). Your

employing office should note in the “Remarks” section: “Reemployed Annuitant; Retirement

Claim Number __________; Option B coverage held as an employee cancelled. Reinstate

suspended Option B coverage held as an annuitant.”

Your employing office must notify your retirement system, so that it can start making the

withholdings again from your annuity.

If you wish to cancel the suspended annuitant coverage, you must notify your retirement system

in writing. Emails, phone calls, and faxes are not acceptable.

Notification of Retirement System

When you file a waiver as a reemployed annuitant, your employing office must enter the words

“Reemployed Annuitant” and your retirement claim number on the SF 2817 (Life Insurance

Election).

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Your employing office should process the SF 2817 in the usual way, and send a photocopy of the

SF 2817 to your retirement system with a short transmittal letter noting the action you took.

If You Are In Nonpay Status While Reemployed

If you complete 12 months of nonpay status while reemployed, your suspended annuitant

coverage will become effective again. Any new coverage you had elected as an employee will

terminate (you can convert this coverage to an individual contract).

Your employing office must notify your retirement system that your employee-held coverage has

terminated, so the retirement system can reinstate the coverage you held as an annuitant and

begin withholding premiums from your annuity. If you return to pay and duty status, your

employing office must notify your retirement system to suspend the annuitant coverage again.

Filing a Designation of Beneficiary, Assignment Form, or Court Order

During Reemployment

When you file an SF 2823 (Designation of Beneficiary), RI 76-10 (Assignment), or court order as

a reemployed annuitant, you should submit it to the Office of Personnel Management,

Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045. If you have insurance

coverage through your reemployment (premiums are withheld from your pay, not your annuity),

you may also file your Designation with your employing office. Your employing office must

enter the words “Reemployed Annuitant” and your retirement claim number on the form and

send it to OPM as soon as possible, but no later than your separation date from your reemploying

agency.

If You Die During Reemployment

Basic Insurance

The amount of benefits payable will be either the amount suspended as an annuitant or

compensationer, less any post-65 reductions, or the amount carried during reemployment,

whichever is higher. To ensure that the proper amount is paid, it is important that your

employing office note you were a reemployed annuitant when it files the SF 2821 (Agency

Certification of Insurance Status) with OPM at the time of your death.

Option A

The amount of benefits payable will be the amount carried during reemployment.

Option B

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The amount of benefits payable will be whichever coverage you elected to have – either the

amount carried as an annuitant or compensationer, or the amount elected in reemployment –

regardless of which amount is higher.

Claims for Benefits

Claims for death benefits must be filed through the Office of Personnel Management, not

directly with the Office of Federal Employees' Group Life Insurance (OFEGLI).

The SF 2821 (Agency Certification of Insurance Status) must show your annual pay for

insurance purposes, before it is reduced by the amount of your annuity. Your employing office

must enter the words “Reemployed Annuitant” and your retirement claim number under your

name and must send the form to the Retirement Operations Center, P.O. Box 45, Boyers, PA

16017-0045. Your employing office should not send the form directly to OFEGLI. Even though

as a reemployed annuitant you were employed with your reemploying agency at time of death,

the SF 2821 should be filed with OPM’s Retirement Operations Center, not OFEGLI. This is so

OPM can certify the correct level of coverage (whichever is higher) to OFEGLI.

You must send claims for accidental dismemberment directly to OFEGLI at P.O. Box 6080,

Scranton, PA 18505-6080.

If a Covered Family Member Dies while You Are Reemployed

Option C benefits will be payable if you had Option C as an annuitant and didn't cancel it during

reemployment, or if you elected it during reemployment.

When You Separate – No Supplemental Annuity or New Retirement

Eligibility

If you separate from service and are not eligible for a supplemental annuity or new retirement,

your reemployment-acquired insurance terminates on the date your reemployment terminates,

subject to the 31-day extension of coverage and conversion privilege.

If you have life insurance that was suspended as an annuitant, that coverage, less any post-65

reductions, will be reinstated. Your employing office must notify the retirement system by fax at

724-794-1263, Attention: Life Insurance, so that it can reinstate the suspended insurance and

begin applicable withholdings and contributions. Although your prior reemploying agency is

responsible for notifying OPM, you should be vigilant and make sure your FEGLI coverage is

reinstated with your annuity and premiums are withheld. You will be responsible for any

overpayment of annuity (i.e., underpayment of FEGLI premiums).

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When You Separate with a Supplemental Annuity or New Retirement

Eligibility

When you separate from service and are eligible for a supplemental annuity or new retirement,

you can continue the reemployment-acquired life insurance if you meet the eligibility

requirements (immediate annuity and 5-year/all-opportunity requirement).

Example # 1

Irma retired in 2008 with Basic insurance only. She became reemployed in 2010 and elected 2

multiples of Option B. She retired again in 2013. She was eligible to continue her

reemployment-acquired Basic insurance, since she had already met the 5-year requirement for

that coverage. However, she didn’t meet the 5-year or all-opportunity requirement for her

Option B, so she was not eligible to continue that coverage when she left employment.

Example # 2

Jeff had Basic insurance and Option A. He elected 3 multiples of Option B during the 2004 open

season. That coverage became effective 9/4/05. Jeff retired in 2008. He was not eligible to

continue his Option B into retirement since he didn’t meet the 5-year or all-opportunity

requirement. He became reemployed in March 2009 and got back the Option B coverage that

had terminated when he retired in 2008. He worked another 3 years. When Jeff separated in

2012 after this subsequent period of service, OPM determined he was eligible for a supplemental

annuity, and he became eligible to continue his Option B because now he met the 5-year

requirement.

Your employing office must complete an SF 2821 (Agency Certification of Insurance Status), the

same as with any other retirement. The words “Reemployed Annuitant” and your retirement

claim number should be entered under your name.

If You Are Separating and Are Eligible to Continue Reemployment-

Acquired Life Insurance

Basic Insurance

Your retirement system will notify you of the amount of Basic insurance suspended as an

annuitant, less any post-65 reductions, and the amount of Basic insurance you had through

reemployment. You must choose between the two different amounts. If you choose the

reemployment-acquired insurance coverage, you must make a new post-65 reduction election on

the SF 2818 (Continuation of Life Insurance Coverage As An Annuitant or Compensationer).

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If you originally separated before January 1, 1990, and elected 75 Percent Reduction, you must

pay premiums until age 65 if you elect to continue the reemployment-acquired Basic insurance.

If you elect to reinstate the suspended “annuitant” insurance, you will not have to make any

premium payments, even if you are under age 65.

Option A

The Option A acquired through reemployment will be continued automatically unless you waive

it.

Option B

If you kept Option B as an annuitant or compensationer, there is no choice to make. If you

elected Option B as an employee, the retirement system must give you a choice between the

suspended coverage, less any post-65 reductions, or the reemployment-acquired coverage.

Option C

The Option C acquired through reemployment will be continued automatically unless you waive

it.

Note: You do not have to choose all of the suspended insurance or all of the reemployment-

acquired insurance. You may pick and choose among the different types of insurance.

PROCEDURES FOR COMPENSATIONERS

 Continued Coverage as an Employee

 Notification to the Office of Workers' Compensation Programs

 When Insurance as an Employee Terminates

o If You Appear Eligible to Continue Your FEGLI as a Compensationer

o If You Do Not Appear Eligible to Continue Your FEGLI as a Compensationer

o If It Is Not Clear Whether You Are Eligible to Continue Your FEGLI

 Canceling or Reducing Insurance

 Designation of Beneficiary Forms

 If You Return to Duty

 If You Die as a Compensationer

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Continued Coverage as an Employee

When you start receiving compensation, you remain insured as an employee until one of the

following things happens:

 You complete 12 months in nonpay status; or

 You separate from service.

Being insured as an employee, rather than as a compensationer, means:

 Basic and Option A coverage include Accidental Death & Dismemberment

 There are no reductions in the amount of insurance in force if you are over age 65

 Salary changes affect the amount of Basic insurance (unless you previously elected a

partial living benefit) and Option B

 You can elect more coverage (although, with the exception of Option C elected due to a

life event, any new coverage will not become effective until you are back in pay and duty

status

 You submit designations of beneficiary, assignments, and court orders directing payment

of FEGLI benefits to your employing office instead of to OPM.

Notification to the Office of Workers' Compensation Programs

When you go on leave without pay to receive compensation, your employing office must notify

the Office of Workers' Compensation Programs (OWCP) of the type and amount of life

insurance you have. The form to use for this purpose is OWCP Form CA-7. In the Remarks

portion of the CA-7, your employing office gives your date of birth and the beginning and

ending dates of the pay period in which pay stopped.

OWCP will make withholdings from your compensation starting from the first day of the pay

period following the one in which your pay stops. Exception: OWCP doesn’t make any

withholdings if you receive compensation for fewer than 29 days. The withholdings are the

same rate that was withheld from your salary; however, they are computed based on a 4-week

(equivalent to two pay periods) cycle.

Whenever your pay changes during the time you are still covered as an employee, your

employing office must notify OWCP, so any withholdings for Basic and Option B can be

adjusted, if necessary.

When Insurance as an Employee Terminates

When your insurance as an employee stops, you may be eligible to continue your coverage as a

compensationer.

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If You Appear Eligible to Continue Your FEGLI as a Compensationer

Your employing agency must give you an SF 2818 (Continuation of Life Insurance Coverage As

An Annuitant or Compensationer). You must complete the SF 2818 making a post-65 reduction

election for your Basic insurance (and your Option B and Option C, if you have those

coverages).

Your employing office must also complete an SF 2821 (Agency Certification of Insurance

Status) and enter your compensation claim number on the SF 2821. Your agency must give you

a copy of the SF 2821, along with an SF 2819 (Notice of Conversion Privilege), in case you wish

to convert any of your coverage.

Your employing office will send the SF 2818, SF 2821, and a copy of the SF 2819, along with

any designations of beneficiary, assignments, court orders directing payment of FEGLI benefits,

and all previous life insurance elections, to OPM.

OPM will verify your compensation status and inability to return to duty with OWCP and will

inform you whether you are eligible to continue coverage.

If you are eligible to continue coverage, OPM's Retirement Operations Center will maintain your

life insurance file and serve as your “employing office” for life insurance purposes. You will be

given a CSI file number and a letter explaining the value of your life insurance.

If you want to convert any or all of your life insurance, your employing office should follow the

same procedures as for annuitants.

If You Do Not Appear Eligible to Continue Your FEGLI as a Compensationer

If your agency determines you do not meet the 5-year/all-opportunity requirement for any of

your FEGLI coverage, they must notify OWCP.

Your FEGLI coverage continues for the first 12 months in nonpay status or until you separate

from service, if that happens first. To notify OWCP, your agency must complete a “Notice of

Life Insurance Ineligibility.” This notice is sent to OWCP at the same time the CA-7 is sent.

OWCP will flag its system to stop the withholdings at the end of 12 months. If you separate

from your agency before the end of 12 months in nonpay, your agency must notify OWCP so

they can stop the withholdings at separation.

Your agency will also give or send a copy of the “Notice of Life Insurance Ineligibility” to you.

This notifies you your FEGLI coverage will terminate upon separation or completion of 12

months in nonpay and that you have a right to convert the coverage.

See the sample “Notice of Life Insurance Ineligibility” form below.

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NOTICE OF LIFE INSURANCE INELIGIBILITY

Employee's Name

Employee's Social

Security Number

The Federal Employees' Group Life Insurance (FEGLI) law states that a person

who is receiving workers' compensation may continue his/her life insurance if the

person had the coverage for the 5 years of service immediately before he/she

started receiving compensation (or for the entire time the coverage was

available, if that's less than 5 years).

You do not meet this 5-year/all-opportunity requirement. Your compensation

started _______________. Your life insurance coverage was effective as

follows:

Type of Coverage

Effective Date of Coverage

Basic Insurance

Option A

Option B

Option C

Therefore you are not eligible to continue your FEGLI as a compensationer.

Your coverage, however, will not stop right away. You may keep your coverage

for 12 months while you are in a nonpay status. The Office of Workers'

Compensation Programs (OWCP) will withhold your premiums from your

compensation.

At the end of 12 months in nonpay status, your coverage terminates. You have

the right to convert to a private individual policy. Your agency will send you the

forms you need to convert your coverage (SF 2819 – Notice of Conversion

Privilege and SF 2821 – Agency Certification of Insurance Status).

If you separate from service before you complete 12 months in nonpay status,

your life insurance terminates at that time, and your agency must provide you the

forms necessary for conversion.

If you do not get these forms from your agency, contact your human resources

office to request them.

If It Is Not Clear Whether You Are Eligible to Continue Your FEGLI

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Your employing agency should follow the same procedures that apply to an eligible employee as

described in BAL 01-216. The Retirement Operations Center will review your life insurance

records and make a determination about your eligibility.

Canceling or Reducing Insurance

If you want to cancel or reduce insurance while you are insured as a compensationer (i.e., no

longer insured as an employee), you must notify OPM so that withholdings can be stopped or

reduced. Submit a letter to OPM, Retirement Operations Center, P.O. Box 45, Attn: Life

Insurance, Boyers, PA 16017-0045. Any cancellation or reduction of life insurance coverage

must be in writing and have an original signature. Emails, phone calls, and faxes are not

acceptable. You need to specify what action you want taken concerning your life insurance

coverage. Be sure to include your name, date of birth, Social Security number and CSI number.

You should also include a daytime phone number, so you can be reached if there are any

questions on your request. OPM determines the effective date of the change, notifies the Office

of Workers' Compensation Programs (OWCP) of the change to withholding, and sends you

verification of the new level of insurance.

Please note you cannot increase your coverage after you are insured as a compensationer, nor can

you reinstate any coverage you cancel.

If you are still insured as an employee and wish to cancel or reduce coverage, you must submit

an SF 2817 (Life Insurance Election) to your employing office.

Designations of Beneficiary, Assignments, and Court Orders

If you are still insured as an employee, you must submit any SF 2823 (Designation of

Beneficiary), RI 76-10 (Assignment), or court orders to your employing office.

If you are insured as a compensationer, you must submit these forms to OPM since your

life insurance records must be on file with them. If they are not, contact your agency to

find out where your FEGLI records are and request they be forwarded to OPM so OPM

can create a CSI file. The address is: OPM, Retirement Operations Center, P.O. Box 45,

Boyers, PA 16017-0045.

If You Return to Duty

When you have been receiving compensation and you return to duty, your employing office must

notify the Office of Workers' Compensation Programs (OWCP) and let them know the beginning

and ending dates of the pay period in which you returned to duty. There is no form to use for

this purpose; your employing office may notify OWCP by letter, phone, or e-mail.

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If a CSI file has been established by the OPM Retirement Operations Center (ROC), your agency

must also notify the ROC that you are back to work. The ROC will send the original life

insurance forms back to your agency.

If You Die as a Compensationer

If you were insured as a compensationer at the time of your death, your beneficiary(ies) should

provide notification of your death to OPM at 1-888-US-OPM-RET (1-888-767-6738) or 202-

606-0500 within the Washington D.C. metropolitan area. OPM will provide each claimant with

an FE-6 (Claim for Death Benefits). Each claimant must submit a separate claim form to the

Office of Federal Employees' Group Life Insurance (OFEGLI) at P.O. Box 6080, Scranton, PA

18505-6080. The address for overnight deliveries is OFEGLI at 123 Wyoming Avenue, 3rd

Floor, Scranton PA 18503. Claimants should not send the claim form to OPM.

TERMINATION AND REINSTATEMENT

 Termination – Annuitants

 Reinstatement – Annuitants

 Termination – Compensationers

 Reinstatement – Compensationers

Termination – Annuitants

Your insurance stops on the day your entitlement to an annuity terminates. There is no 31-day

extension of coverage or right to convert. Exception: If you are a disability annuitant and your

annuity is terminated because you are found to be recovered or restored to earning capacity, you

can keep FEGLI if you are entitled to and apply for an immediate annuity under another

provision of retirement law. (If you are eligible only for a deferred annuity, FEGLI stops when

your disability annuity stops.)

Reinstatement – Annuitants

If you are a disability annuitant, you can have FEGLI reinstated when your disability annuity is

reinstated if you meet the following conditions:

 Your disability annuity stopped because of a recovery from the disability or restoration to

earning capacity, and

 Your disability annuity is restored after December 31, 1983.

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If you meet these requirements, you can get back any FEGLI coverage you had immediately

before your annuity was terminated. Refer questions about your reinstatement to OPM, P.O. Box

45, Boyers, PA 16017-0045, or email them at [email protected]

Termination – Compensationers

Your life insurance terminates when compensation stops or when the Office of Workers'

Compensation Programs (OWCP) finds you are able to return to duty. There is no 31-day

extension of coverage or right to convert once your insurance terminates. Exceptions:

 Your life insurance will continue if you become an annuitant and are eligible to continue

life insurance as an annuitant, or if you return to work in a non-excluded position.

 If you are a compensationer who is found able to work part-time or to perform light duty

and you continue to receive a reduced level of compensation, you do not lose your

FEGLI coverage. If you return to Federal service, your Basic insurance (and Options A

and C) held as a compensationer stops and you become insured as an employee. Your

Option B coverage continues as if you were not a reemployed annuitant unless you file an

election with your reemploying agency electing to have Option B and an employee.

Reinstatement – Compensationers

There is no reinstatement of life insurance for a compensationer (unless you successfully appeal

the termination of your compensation). However, if you return to duty or become reemployed in

a non-excluded position, you can get FEGLI coverage again.

HISTORICAL INFORMATION

 Requirements for Continuing Coverage into Retirement or Receipt of

Compensation

 Reemployed Annuitants

 Post-65 Reductions

o Basic Insurance

o Option B and Option C

 Post-65 Reductions for Compensationers

 Retirement or Receipt of Compensation before April 24, 1999

 Reemployment and Its Effect on FEGLI Coverage

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Requirements for Continuing Coverage into Retirement or Receipt of

Compensation

When the FEGLI Program started in 1954, the requirement for continuing coverage into

retirement was that the employee retire on an immediate annuity with at least 15 years of

creditable civilian service. Initially compensationers were excluded, but they were later brought

into the Program retroactive to 1954.

In 1959 the service requirement was reduced from 15 years to 12 years.

In 1978 the 12-year service requirement was removed and replaced with the current 5-year/all-

opportunity coverage requirement.

Reemployed Annuitants

At the beginning of the FEGLI Program, most reemployed annuitants were not eligible for

coverage through their reemployment. Reemployed annuitants became eligible in 1966.

Post-65 Reductions

Basic Insurance

When the FEGLI Program began, regular/Basic insurance began to reduce when an

annuitant/compensationer reached age 65. The reduction continued until 75 Percent of the

original face value was gone. There was no post-retirement election to be made.

The 50 Percent Reduction and No Reduction elections began in December 1980.

Option B and Option C

When Option B and Option C were added to the Program, the post-65 reduction was automatic.

Beginning in 1999, retiring employees were able to choose between Full Reduction and No

Reduction.

Retirement or Receipt of Compensation before April 24, 1999

A compensationer who was retired or insured before April 24, 1999 and had Option B coverage

was given an opportunity between April 24 - October 24, 1999 to choose Full Reduction or No

Reduction for your Option B coverage.

If Option B had already started reducing, a compensationer was given the opportunity to freeze

the Option B coverage at the amount in force as of April 24, 1999. If elected, premiums were

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withheld again from the annuity or compensation appropriate to the insured’s age and the amount

frozen.

There was no election opportunity regarding Option C.

Reemployment’s Effect on Compensation

Prior to October 2010, a compensationer who was reemployed had FEGLI coverage reinstated at

the salary rate of their reemployment position, even if that salary was part-time or lower than the

salary for the prior period of employment.

Effective October 1, 2010, a compensationer who returns to work in a FEGLI-eligible position at

a part-time rate or lower salary while still receiving a reduced compensation benefit will be

treated the same as a reemployed annuitant. The FEGLI coverage as a compensationer stops, the

coverage transfers back to the employing agency and the compensationer has a choice: retain

Option B as a compensationer, or elect it as an employee.

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ORDER OF PRECEDENCE AND

DESIGNATION OF BENEFICIARY

 Order of Precedence and Payment of Benefits

 Designation of Beneficiary

 Designating a Trust

 Changing or Canceling Designations

 If Your Beneficiary Is a Minor

 Annuitants and Compensationers

 Court Orders

 Historical Information

ORDER OF PRECEDENCE AND PAYMENT OF

BENEFITS

 Order of Precedence

 Effect of Assignments and Court Orders

 If No Claim Is Filed

 Option C

Order of Precedence

Upon your death, the Office of Federal Employees' Group Life Insurance (OFEGLI) will pay life

insurance benefits in a particular order set by law. This order of precedence is:

 If you assigned ownership of your life insurance by filing an Assignment, Federal

Employees Group Life Insurance (RI 76-10), OFEGLI will pay benefits:

First, to the beneficiary(ies) designated by your assignee(s), if any;

Second, if there is no beneficiary, to your assignee(s).

 If you did not assign ownership and there is a valid court order on file, OFEGLI will pay

benefits in accordance with that court order.

 If you did not assign ownership and there is no valid court order on file, OFEGLI will

pay benefits:

First, to the beneficiary(ies) you designated;

Second, if there is no such beneficiary, to your widow or widower;

Third, if none of the above, to your child, or children in equal shares, with the

share of any deceased child distributed among the descendants of that child (a

court will usually have to appoint a guardian to receive payment for a minor

child);

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Fourth, if none of the above, to your parents in equal shares, or the entire amount

to the surviving parent;

Fifth, if none of the above, to the court-appointed executor or administrator of

your estate;

Sixth, if none of the above, to your other next of kin as determined under the laws

of the state where you lived.

If you want payment to be made differently from the order listed above, and you have not

assigned your life insurance, and there is no valid court order on file, you must designate a

beneficiary. If you are satisfied with the order listed above, you do not need to designate a

beneficiary.

Effect of Assignments and Court Orders

Assignments and valid court orders preempt the order of precedence.

If you assigned your life insurance, OFEGLI will pay benefits to the beneficiary(ies) designated

by your assignee(s), if any. If there is no such beneficiary, OFEGLI will pay benefits to your

assignee(s).

If you did not assign ownership and there is a valid court order on file, OFEGLI will pay benefits

in accordance with that court order.

If No Claim Is Filed

If the person who is entitled to payment under the order of precedence does not file a claim

within one year after your death (or if payment to the person who filed is forbidden by Federal

law or regulation), OFEGLI can pay the person next in the order of precedence, just as if the

person who would otherwise get the payment had died before you did.

By law, this payment bars any other person from collecting payment.

If the person who is entitled to payment under the order of precedence does not file a claim

within two years after your death, and neither OPM nor OFEGLI has received notice that such a

claim will be made, OFEGLI can pay the claimant who in OPM's judgment is equitably entitled

to the payment. By law, this payment bars any other person from collecting payment.

If a valid claim has not been filed and no claim is pending four years after your death, OFEGLI

returns the insurance proceeds to OPM for deposit in the Employees' Life Insurance Fund.

However, OFEGLI may still pay a valid claim years after the death if no prior claim has been

filed and paid.

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Option C

Option C benefits are paid to you, the insured, upon the death of your spouse or eligible

dependent child(ren).

If you die after your spouse or eligible dependent child(ren) die, but before Option C benefits are

paid (whether or not you filed for the benefits), the payment will go to the person(s) eligible for

the benefits of your Basic insurance. If you assigned your FEGLI coverage, Option C payment

will be made under the order of precedence, excluding any previous designations of beneficiary

made invalid by your assignment. Option C benefits cannot be assigned.

DESIGNATION OF BENEFICIARY

 When to Designate

 Who Can Make a Designation?

 Designation Form

 Receipt before Death

 Importance of Updating Designation

 Naming Multiple Beneficiaries

 Naming Contingent Beneficiaries

 Naming Your Estate

 Common-Disaster Clause

 Employing Office Review

 Invalid and Unacceptable Designations

 Other Errors to Avoid

 Payment When Designation Is Invalid

 Employing Office Advice to Employees

 Designations for Other Federal Benefits

When to Designate

If you are satisfied with the order of precedence, you need not designate a beneficiary.

However, you do need to designate a beneficiary in these situations:

 If you want benefits to be paid to a person, firm, charitable organization, or other legal

entity not listed in the order of precedence;

 If you want benefits to be paid in a different order from the order of precedence;

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 If you want to have a contingent beneficiary, i.e., someone to receive the benefits if your

preferred beneficiary dies before you do;

 If you want to designate a “common disaster” clause;

 If you want benefits to go to a trust you have established for your minor children; or

 If evidence of a valid marriage or dissolution of a marriage is not readily available and

you want benefits to be paid in a different order than the order of precedence.

Who Can Make a Designation?

Any insured employee, annuitant, or compensationer may designate a beneficiary. Exception: If

you have assigned your insurance, you cannot designate a beneficiary. The right to designate a

beneficiary transfers to your assignee(s).

Designations cannot be made by someone with a power of attorney or by a court-appointed

guardian, conservator, trustee, or committee. No one can designate benefits on behalf of an

insured person or assignee. Only the insured person or assignee can designate benefits.

If an insured employee, annuitant, or compensationer cannot sign a designation because of a

physical impairment, but is otherwise competent, s/he can sign with an “X”. If an insured

employee, annuitant, or compensationer is not competent, s/he cannot complete and sign a

designation form.

Designation Form

The SF 2823 (Designation of Beneficiary) is the preferred way for you to make a designation for

your FEGLI benefits. You can find instructions on how to complete the SF 2823 on the reverse

side of the form.

Your employing office must receive the valid and properly completed form before you die. If

you are retired or insured as a compensationer, you must submit the SF 2823 to OPM before you

die. The address is: Retirement Operations Center, P.O. Box 45, Boyers, PA 16017-0045.

OPM must receive the valid and properly completed form before you die.

When you complete the SF 2823, your signature must be witnessed by two persons. These

witnesses must also sign the SF 2823 and give their addresses. A witness cannot be someone

you are naming on the form as a beneficiary.

A designation made in any other document is not valid unless the designation is specifically for

your FEGLI benefits, the document is signed by you, witnessed and signed by two persons not

named as beneficiaries, received by the appropriate office before you die, does not contain any

errors that would make it invalid, and a valid SF 2823 (Designation of Beneficiary) is not already

on file.

The SF 2823 requests the social security number of your beneficiary. If your beneficiary does

not have a social security number, you should leave that space blank. In addition, if you do not

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know your beneficiary’s social security number or do not want to provide it, you should leave

that space blank. Your employing office will still accept the form. Having the social security

number will help the Office of Federal Employees' Group Life Insurance (OFEGLI) locate

missing beneficiaries and verify entitlement to benefits, thus speeding up the payment process

for difficult cases. However, the number is not absolutely necessary.

You can download the SF 2823 (Designation of Beneficiary) at

http://www.opm.gov/forms/pdf_fill/sf2823.pdf.

Receipt before Death

Your employing office must receive your designation of beneficiary before you die for your

designation to be valid. For retirees and those insured as compensationers, OPM is your

employing agency. A designation delivered on a weekend or Federal holiday or a day when the

office is closed for any reason is not “received,” and is not valid, until the next workday. If you

die before your employing office's receipt of a new designation of beneficiary, benefits will be

paid in accordance with your previous designation on file or under the order of precedence, if

there is no previous valid designation.

You should make sure that you obtain the duplicate copy (i.e., a copy of the original) of your

designation, signed and receipted by an authorized official of your employing agency, to ensure

that your designation is properly on file. Retain this copy for your (and your beneficiaries’)

records.

Example

William wanted to update his designated beneficiary since the one on file named his ex-wife. He

completed a designation naming his spouse Jackie to receive all his FEGLI benefits. He gave

Jackie a copy of his completed form and brought the original into work to file with his HR office.

William forgot to drop off the designation, and left it in his desk. He died soon after

unexpectedly.

Since the most recent designation he completed was not on file with his employing office, his

FEGLI benefits will be paid to his former spouse. Even though Jackie has a copy of the

designation he completed, it is not valid since it was not properly filed with the appropriate

office prior to his death.

Importance of Updating Designations

It is your responsibility to ensure that your designation of beneficiary remains accurate and

reflects your intentions. Benefits will be paid based on a valid designation, regardless of whether

that designation still reflects your intentions.

You may want to consider completing a new designation form whenever you have a significant

change in your life, such as a marriage, divorce, death, or acquiring a child. For example, a

divorce does not invalidate a designation that names your former spouse as beneficiary, nor do

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state laws invalidate a designation (unless a valid court order names the former spouse to receive

FEGLI benefits). You need to complete a new SF 2823 to remove a former spouse.

In addition, if you have a same-sex partner to whom you are not legally married (i.e., your

partner does not meet the definition of a “spouse”), you may wish to name your partner as a

beneficiary if you want your FEGLI proceeds paid to him/her. If you do not have a designation

on file, benefits will be paid based on the statutory order of precedence.

Regardless of your personal circumstances, be sure your designation remains current and

accurately reflects your intentions.

You should keep your designated beneficiaries' addresses current. If you do not, OFEGLI may

not be able to locate your beneficiary, and therefore benefits will not be paid to that person. The

preferred way is to file a new designation of beneficiary whenever a beneficiary's address (or

name) changes. You may also ask your employing office to attach a beneficiary's new address to

your current designation of beneficiary form; your employing office needs to ensure the

attachment is forwarded along with the designation of beneficiary form when you retire or die.

A new address cannot be added directly to the designation of beneficiary form itself, since any

cross outs, erasures, or alterations in your form may invalidate it.

Naming Multiple Beneficiaries

If you want to name more than one beneficiary, there are two ways you can do this:

 You can designate percentages or fractions to go to each person, e.g., 50 Percent (or 1/2)

to Kirby, 25 Percent (or 1/4) to Kelly, and 25 Percent (or 1/4) to Lester. The total must

add up to 100 Percent (or 1.0 for fractions).

 You can designate types of insurance to go to various beneficiaries, e.g., Basic insurance

to Lynn, Option A to Mike, and Option B to Mildred.

You cannot designate dollar amounts, and you cannot designate an animal, such as a pet. You

can designate a charitable organization or a person who lives in a foreign country.

If the SF 2823 (Designation of Beneficiary) does not have enough room for you to list all your

beneficiaries, you can attach more names. Write “SEE ATTACHED” in Part B of the SF 2823.

On your attachment, print your name, date of birth, and Social Security number at the top. Then

list the information required in Part B of the SF 2823 for each of your beneficiaries. Sign the

SF 2823 and the attachment. The same witnesses should witness both of your signatures and

sign both the SF 2823 and the attachment. You may use this sample attachment:

Attachment to my SF 2823 (Designation of Beneficiary)

dated _______________

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Name: _________________________________

Date of Birth: ___________________________

Social Security Number: __________________

I hereby designate:

First name,

middle initial,

last name

SSN

Address

Relationship

Percent/fraction

designated

Total (Must equal 100 Percent or 1.0) __________

Signature: __________________________________Date: __________________

Witnesses to Signature:_______________________ Date: _______________

Agency Representative Signature: _______________Date: ____________

Naming Contingent Beneficiaries

A contingent beneficiary(ies) is someone to receive the benefits if the person you designate dies

before the Insured dies. If you want to name a contingent beneficiary, you can follow the

example below on your SF 2823:

 John M. Parrish, if living 100 Percent

Otherwise to: Susan A. Parrish 50 Percent

William Parrish 50 Percent

Naming Your Estate

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You can choose to have your FEGLI benefits paid to your estate when you die. If you want to

name your estate, do the following in Part B of the SF 2823:

 To My Estate 100 Percent

Common-Disaster Clause

A common-disaster clause is a statement on the designation that says that a designated

beneficiary only gets the benefits if he/she survives you by a specified minimum number of days.

The number of days specified cannot exceed 30.

You can name an alternate beneficiary to receive the benefits in this case. If you do not name an

alternate, benefits will be paid according to the order of precedence.

Example

Norm wanted to designate his wife Nina as his beneficiary, but only if she survived him by a

certain length of time. He added a common disaster clause on his SF 2823, stating that 100

Percent of the benefits are to be paid to “Nina A. Smith, if she survives me by 3 weeks;

otherwise, 50 Percent to Oscar B. Smith and 50 Percent to Odette C. Smith.”

Employing Office Actions

Your employing office may review your designation of beneficiary to verify that it appears to

have been completed properly. Your designation should be submitted to the appropriate

employing office via appropriate methods approved by your employing office. They will keep

the original copy in your Official Personnel Folder, or its equivalent. The duplicate copy (or a

copy of the original), dated and signed by an authorized agency official, is returned to you. Your

employing office will keep all prior designations of beneficiary on file.

You (and not your agency or anyone else) are responsible for completing a designation properly.

If your employing office accepts a form that is not completed properly, that does not make the

form valid.

Invalid and Unacceptable Designations

These are some of the things that may cause a designation to be invalid or unacceptable:

 You do not sign the designation.

 The designation is signed by your personal representative, power of attorney, or guardian

instead of you.

 The designation is not signed by two witnesses.

 The designation contains one or more cross outs, erasures, or alterations.

 Your employing office does not receive your designation of beneficiary until after you

die.

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 You have assigned your insurance, and you, not your assignee(s), signed the designation.

 One or both of the witnesses is also named as a beneficiary, and there are no remaining

(non-witnessing) beneficiaries named on the designation. (If there are remaining

beneficiaries, the designation is not invalid; however, payment will not be made to any

beneficiary who served as a witness. Payment will be distributed to the remaining

beneficiaries as if the beneficiary(ies) who served as a witness died before you.)

 The beneficiaries named on the original and the duplicate copies of the designation of

beneficiary are different.

 Your name, as shown in the body of the designation, is significantly different from your

signature. The difference is not significant if initials of first and middle names are used

in one place and full names in the other.

 The amounts you designated do not add up to 100 Percent (or 1.0, if you designated

fractions).

 You do not name a specific beneficiary. Examples of this are:

o Per stirpes designations – ones that provide for the equal distribution of benefits

among the children of a deceased named beneficiary. You may want to consider

a designation like this, instead:

Hector Gonzales, my son, 100 Percent, if living

Otherwise to the estate of Hector Gonzales

 A designation in which the beneficiary does not yet exist (e.g., “Mary Smith's children,

born and unborn”, or “TBD”.)

Other Errors to Avoid

To ensure proper payment to your beneficiaries, you should avoid these errors when completing

a designation of beneficiary form:

 Not stating the given name of the beneficiary (e.g., “Mrs. Patrick Doe” instead of “Penny

Doe”).

 Making provisions that cannot be recognized, such as “payment of just debts”, or “to

Raymond, if he stays in college”, or “Andrea when she reaches age 25”.

 Not clearly stating that you are naming a contingent beneficiary (e.g., “Rachel Jones or

Simon Jones” instead of “Rachel Jones, if living; otherwise to Simon Jones”).

The back of the SF 2823 (Designation of Beneficiary) contains examples of several different

types of designations, showing the correct way to make each type.

Payment When Designation Is Invalid

OFEGLI will make payment in accordance with your last valid designation of beneficiary (or

according to the order of precedence, if there is no designation) when your latest designation

form:

 Lacks either your signature or witnesses' signature(s);

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 Was not received by your employing office or retirement system before your death; or

 Was signed while you were incompetent or under undue influence, as found by a court of

competent jurisdiction.

OFEGLI will make payment in accordance with the statutory order of precedence when your

latest designation form:

 Names a beneficiary who died before you, and there are no other surviving named

beneficiaries;

 Names a beneficiary who forfeited his/her right to the proceeds by wrongfully causing

your death (and no other beneficiaries were named);

 Names a trust that was never established (and no other beneficiaries were named); or

 Names an entity that does not exist, or for which there is no legitimate, recognized

successor organization (and no other beneficiaries were named).

Employing Office Advice to Employees

When you become insured, your employing office should give you a copy of the FEGLI Program

Booklet (FE 76-21, or FE 76-20 for Postal employees) or let you know that a copy is available

on OPM’s website at http://www.opm.gov/healthcare-insurance/life-insurance/. The booklet

lists the order of precedence and discusses the option of designating a beneficiary.

From time to time employing offices should remind their employees that changes in family

status, without a corresponding change in designation of beneficiary, could result in benefits not

being paid the way you want.

However, you, not your agency, are solely responsible for ensuring that your designation is

correct and accurately reflects your intentions.

Designations for Other Federal Benefits

The SF 2823 (Designation of Beneficiary) is completed to designate FEGLI benefits. There are

separate forms to be used for other types of designations, as follows:

 SF 2808 (Designation of Beneficiary, CSRS)

 SF 3102 (Designation of Beneficiary, FERS)

 SF 1152 (Designation of Beneficiary, Unpaid Compensation of Deceased Civilian

Employee)

 TSP-3 (Designation of Beneficiary, Federal Thrift Savings Plan)

You can download all the forms from the OPM Designations of Beneficiary page on the FEGLI

website www.opm.gov/healthcare-insurance/life-insurance/designating-a-beneficiary/.

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DESIGNATING A TRUST

 Information Required

 Inter Vivos Trusts

 Testamentary Trusts

 Other Formats

Information Required

You can designate a person or institution as a trustee under the terms of a trust agreement to

receive the life insurance benefits upon your death.

To make sure that these designations are clear and to allow quick identification of the entitled

party, OPM has established suggested formats to use for these designations. To be valid, the

trustee designation must be attached to and made a part of the designation of beneficiary form.

The employing office should mark the attachment as received in the same manner as the

designation of beneficiary in case it gets separated from the designation. The designation of

beneficiary form should state “See attached” in the space for the designation.

While it is not absolutely necessary to use the OPM-established formats, the following

information must be included for the designation to be valid:

 A statement that the FEGLI death benefit is to be paid to the trustee or successor trustee,

and

 The name and date of the Trust (for inter vivos trusts).

Inter Vivos Trusts

An inter vivos trust is one that you establish during your lifetime.

This is a suggested format for this type of trust:

Name of Insured (please print): ______________________________________

Social Security Number of Insured: ___________________________________

INTER VIVOS TRUSTEE DESIGNATION

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TO BE ATTACHED TO AND MADE PART OF DESIGNATION OF BENEFICIARY

DATED______________________________________

I request that the amount payable under the FEDERAL EMPLOYEES' GROUP LIFE

INSURANCE PROGRAM (Proceeds) be paid to the Trustee(s) or Successor Trustee(s) as

provided under (Name of Trust Agreement) __________________________________

bearing the date of ______________ executed by me.

I further request that in the case of the failure of said Trustee(s) to be appointed as such or to

qualify as such for any reason, or the termination for any reason of the trust prior to my death

that the Proceeds shall be paid to:

Name

Address

Relationship

_________________

__________________

_________________

______________

_________________

__________________

_________________

______________

_________________

__________________

_________________

______________

The Office of Federal Employees' Group Life Insurance (OFEGLI) shall not be responsible

for the application or disposition of the proceeds by said Trustee and the receipt by said

Trustee shall fully discharge OFEGLI's liability under the FEDERAL EMPLOYEES'

GROUP LIFE INSURANCE PROGRAM.

____________________________________

______________________________

Signature of Insured/Assignee (Only the

Insured/Assignee may sign. Signatures by guardians,

conservators or through a power of attorney are not

acceptable.)

Date of execution (Month, day, year)

Two Witnesses to Signature (A witness is not eligible to receive payment as a beneficiary):

__________________

________________________

_______________________________

Signature of witness

Number and street

City, state and ZIP code

__________________

________________________

_______________________________

Signature of witness

Number and street

City, state and ZIP code

Testamentary Trusts

A testamentary trust is one that you create by your will at death.

This is a suggested format for this type of trust.

Name of Insured (please print): __________________________________

Social Security Number of Insured: _______________________________

TESTAMENTARY TRUSTEE DESIGNATION

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TO BE ATTACHED TO AND MADE PART OF DESIGNATION OF BENEFICIARY DATED

_________________

I request that the amount payable under the FEDERAL EMPLOYEES' GROUP LIFE

INSURANCE PROGRAM (Proceeds) be paid to the Trustee(s) or Successor Trustee(s) as

provided under my Last Will and Testament, and I further request that in the case of the

failure of said Trustee to be appointed as such or to qualify as such by reason of non-probate

of any Will to that effect or for any other reason whatsoever, the Proceeds shall be paid to:

Name

Address

Relationship

_________________

__________________

_________________

______________

_________________

__________________

_________________

______________

_________________

__________________

_________________

______________

The Office of Federal Employees' Group Life Insurance (OFEGLI) shall not be responsible

for the application or disposition of the proceeds by said Trustee and the receipt by said

Trustee shall fully discharge OFEGLI's liability under the FEDERAL EMPLOYEES'

GROUP LIFE INSURANCE PROGRAM.

____________________________________

______________________________

Signature of Insured/Assignee (Only the

Insured/Assignee may sign. Signatures by guardians,

conservators or through a power of attorney are not

acceptable.)

Date of execution (Month, day, year)

Two Witnesses to Signature (A witness is not eligible to receive payment as a beneficiary):

__________________

________________________

_______________________________

Signature of witness

Number and street

City, state and ZIP code

__________________

________________________

_______________________________

Signature of witness

Number and street

City, state and ZIP code

Other Formats

If you want to use some other format, cannot provide the information requested above, or need

additional information about designating a trust, please contact OFEGLI in writing at P.O. Box

6080, Scranton, PA 18505-6080. The address for overnight deliveries is OFEGLI at 123

Wyoming Avenue, 3rd Floor, Scranton PA 18503.

CHANGING OR CANCELING DESIGNATIONS

 Your Right to Change or Cancel

 Changing Your Designation of Beneficiary

 How Long Does My Designation Last?

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Your Right to Change or Cancel

Unless you have assigned your life insurance, or your employing office has received a valid

court order requiring benefits to be paid to a specific person(s), you have the right to change or

cancel your designation of beneficiary at any time, without the knowledge or consent of any

previous beneficiary.

Changing or Cancelling Your Designation of Beneficiary

If you want to change your designation of beneficiary, complete a new designation form, SF

2823, and submit it to your employing office. This will supersede any prior designation.

If you want to cancel your current designation without naming a new beneficiary, you need to

complete a new designation form and submit it to your employing office. On the form write

“Cancel Prior Designations” in Part B. When you die, benefits will be paid according to the

order of precedence.

How Long Does My Designation Last?

Your designation of beneficiary remains valid until one of the following things happen:

 You submit a valid new designation either naming a different beneficiary or canceling

your previous designation;

 You cancel your insurance;

 Your insurance as an employee terminates (your designation automatically cancels 31

days after the date of the termination). Exception: If you become insured as an annuitant

or compensationer, your designation continues;

 Your annuity terminates (your designation automatically cancels the day your annuity

terminates). Exception: If you are entitled either to OWCP benefits (and determined by

the Department of Labor to be unable to return to duty) or to an immediate annuity under

another provision of retirement law, your insurance and your designation continue;

 Your compensation stops or the Department of Labor determines that you are able to

return to duty (your designation automatically cancels the day of the determination or the

day your compensation stops). Exception: If you are entitled to continue insurance as an

annuitant or you return to Federal service on the day after compensation terminates, your

insurance and your designation continue;

 The effective date of an assignment of insurance (if an assignment has been made).

If you separate from Federal service and convert your life insurance to a private policy, any

designation of beneficiary you made under the FEGLI Program does not convert. If you wish to

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designate a beneficiary under your conversion policy, you must contact the insurance company

that issued the conversion policy.

If you transfer from one agency to another, and your FEGLI continues, your designation of

beneficiary remains in effect. Exception: If your transfer to another agency was before

November 17, 1986, any designation completed before that date is invalid. You must file a new

designation if you do not want benefits paid according to the order of precedence.

Your employing office must alert OFEGLI to any designations and subsequent transfers made

prior to November 17, 1986, whenever life insurance forms are sent to OFEGLI.

IF YOUR BENEFICIARY IS A MINOR

 Payment to Minors Barred

 What Will OFEGLI Do?

Payment to Minors Barred

A minor is a child under age 18. If the state where the child lives sets a lower age for reaching

adulthood, that lower age applies.

OFEGLI cannot pay benefits to a minor.

What Will OFEGLI Do?

If the beneficiary is a minor – whether by designation or under the order of precedence –

OFEGLI will pay a court-appointed guardian, if there is one. Parents – biological or adoptive –

are not automatically guardians. A court must appoint a guardian and grant to the guardian the

authority to collect money on behalf of the child. The guardian then can submit a claim to

OFEGLI with proof of the guardianship, and benefits will be paid to the guardian on behalf of

the minor.

If there is no court-appointed guardian, and the proceeds are $10,000 or more, OFEGLI will hold

the money in an interest-bearing account until the minor reaches legal age. At that time, the

child can apply for the proceeds on his/her own behalf.

If there is no court-appointed guardian, and the proceeds are under $10,000, OFEGLI will pay

the minor’s parent(s). The parent(s) must agree in writing to:

 Hold the money for the child until he/she reaches legal age;

 Account for the money to the child when the child reaches legal age; and

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 Indemnify OFEGLI (meaning hold OFEGLI harmless in a possible future lawsuit) in the

event the parent(s) misuses the funds.

If the parent(s) do not agree in writing to the three conditions, a court-appointed guardian or

court-appointed conservator can be paid. If there is no court-appointed guardian or court-

appointed conservator, the proceeds will be held in an interest-bearing account until the minor

reaches legal age. At that time, the child can apply for the proceeds on his/her own behalf.

ANNUITANTS AND COMPENSATIONERS

 Continuing Designations

 Procedures

 FERS MRA+10 Retirements

 While Insured as an Annuitant or Compensationer

 Reemployed Annuitants

Continuing Designations

When you are eligible to continue your FEGLI as an annuitant or compensationer, any valid

designation of beneficiary on file with your employing office remains valid, unless you change

or cancel the designation or your annuity or compensation stops.

Procedures

When you retire, unless you elect to convert your insurance, your employing office must attach

any SF 2823 or SF 54 (a previous version of the Designation of Beneficiary), RI 76-10

(Assignment), and/or court order directing payment of FEGLI benefits, to your retirement

application and send it, together with the original SF 2821 (Agency Certification of Insurance

Status), and all other FEGLI documents to OPM’s retirement office.

If you are separating for disability retirement after a finding of total disability has been made by

OPM, your employing office will send the SF 2823 (Designation of Beneficiary) and/or court

order with the final SF 2806/SF 3100 (CSRS/FERS Individual Retirement Record).

When you become insured as a compensationer (see the subsection “Continuing FEGLI

Coverage as a Compensationer” ), your employing office must send any SF 2823 or SF 54

(Designation of Beneficiary), RI 76-10 (Assignment), and/or court order directing payment of

FEGLI benefits, together with the original SF 2821 (Agency Certification of Insurance Status),

and all other FEGLI documents to OPM’s retirement office.

FERS MRA+10 Retirements

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If you are a separating employee eligible to retire under FERS MRA+10 provisions, but you do

not file an application, your employing office must keep any current designation of beneficiary,

assignment, and/or court order directing payment of FEGLI benefits in your Official Personnel

Folder or its equivalent. Your employing office will check the appropriate box on the SF 2821

(Agency Certification of Insurance Status) to show that the designation has been retained in the

OPF.

When you later apply for retirement, the retirement system will request your designation and all

other FEGLI documents from the National Personnel Records Center. Your most recent

designation on file will be made valid upon reinstatement of your life insurance. If you want to

change your designation, contact OPM at Retirement Operations Center, P.O. Box 45, Boyers,

PA 16017-0045.

While Insured as an Annuitant or Compensationer

An annuitant or compensationer has the same rights as an employee to make, change, or cancel a

designation. See the subsection “Your Right to Change or Cancel”.

If you are retired or insured as a compensationer, you must submit any new designation of

beneficiary to OPM’s retirement office regardless of the retirement system from which you are

retired. Send your completed designation of beneficiary to Retirement Operations Center,

Retirement Information and Correspondence Branch, P.O. Box 45, Boyers, PA 16017. Send

assignments and/or court orders directing payment of FEGLI benefits to the same address.

OPM must receive the designation of beneficiary, assignment, and/or court order before you die.

Reemployed Annuitants

If you are a reemployed annuitant, you should submit any new designation of beneficiary to

OPM, Retirement Operations Center, Retirement Information and Correspondence Branch,

P.O. Box 45, Boyers, PA 16017-0045. If you have insurance coverage through your

reemployment (premiums are withheld from your pay, not your annuity), you may also file your

designation with your employing office; however, your employing office must send it to OPM as

soon as possible after receiving it. Your employing office must enter the words “Reemployed

Annuitant” and your retirement claim number on the designation form before sending it to OPM.

COURT ORDERS

 Effect of a Court Order

 Submission of Court Order

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 Disposition of Court Order

Effect of a Court Order

With the enactment of Public Law 105-205 on July 22, 1998, FEGLI benefits must be paid in

accordance with the terms of a valid court order, regardless of whether you actually complete a

designation of beneficiary form complying with the court order.

The court order supersedes any of your prior designations. When such a court order is in effect,

you cannot change your designation or make a new designation, unless the person(s) named in

the court order agree(s) in writing or unless the court order is subsequently modified. Your

employing office may accept a designation from you, but that does not make it valid.

Submission of Court Order

To be valid, a certified copy of the court order must be on file with the insured’s employing

office before the insured’s death. Anyone can submit the court order, including the ex-

spouse or attorney.

If you are an annuitant, the court order must be sent to OPM at Retirement Operations Center,

Retirement and Correspondence Branch, P.O. Box 45, Boyers, PA 16017-0045. If you are a

compensationer, during the first 12 months of nonpay status the court order must go to your

employing office. After you separate or complete 12 months in nonpay status, the court order

must be sent to OPM.

Disposition of Court Order

Your employing office must file any court order in your Official Personnel Folder (OPF) (or its

electronic equivalent). Your employing office must clearly stamp the court order with the

receipt date and flag your OPF in some way to indicate that it contains a court order. Your

employing office will not review the court order or make any determination on its validity.

If your employing office receives a subsequent court order for you, it should also date stamp and

file it in your OPF, with the previous court order(s). Your employing office should send all court

orders, along with the other life insurance forms, to either OFEGLI (at your death) or OPM (at

your retirement). At the time of your death, OFEGLI will determine which court order, if any, is

valid for payment of benefits.

If you submit a designation of beneficiary when you have a court order on file, your employing

office should certify its receipt, and file it in your OPF. Your employing office should notify

you that there is a court order on file and that the designation may not be valid. At the time of

your death, OFEGLI will determine whether the court order is still in effect or whether benefits

should be paid according to the designation.

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Sometimes a court order awards a portion of an employee’s future annuity, or a future survivor

annuity. Retirement regulations require that an employee’s court order with such provisions be

filed with OPM’s Court-Ordered Benefits Office. But if there is a FEGLI benefit provided for in

the court order and you are an active employee at the time of filing, a copy of the court order

must be filed with the employing agency, too.

Example

Jay is a married employee with FEGLI coverage. He has no designation of beneficiary form on

file. He divorces his spouse Angela. They have no children. The divorce court order provides

that Angela is entitled to a future share of Jay’s retirement annuity, and to 100% of his FEGLI

insurance. Angela’s attorney properly files a copy of the court order for the future annuity share

with OPM’s Court-Ordered Benefits Branch, but does not file a copy with Jay’s agency. Jay also

does not file the court order with his employing agency.

Jay later dies as an active employee. Because the court order awarding FEGLI benefits is not

on file with the appropriate office (in this case his employing agency) at the time of his death,

FEGLI proceeds will be paid based on the order of precedence, so his parents will receive the

proceeds.

HISTORICAL INFORMATION

 Transfers from One Agency to Another

 Court Orders

 Same-sex spouses

Transfers from One Agency to Another

Until November 1986, designations of beneficiary automatically cancelled when an employee

transferred from one agency to another. Since November 1986, designations remain valid when

an employee changes agencies.

Court Orders

Prior to July 22, 1998, court orders requiring payment of FEGLI benefits in a specific way had

no validity under the FEGLI law. Payments were made in accordance with the order of

precedence or in accordance with a valid assignment. Now, court orders are recognized in the

order of precedence if they are received before your death in the appropriate office (agency

employing offices for employees, OPM for those insured as annuitants or compensationers).

Same-sex spouses

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Effective June 26, 2013, a same-sex spouse of a valid marriage is recognized as a family member

for benefits under the FEGLI Program. Legal same-sex marriages entered into following this

decision will be treated in the same manner as opposite-sex marriages, regardless of an

employee’s or annuitant’s state of residency. Consistent with OPM’s long-standing policy of

recognizing the legal foreign marriages of opposite-sex couples for purposes of FEGLI, OPM

will also recognize legal same-sex marriages granted in countries that authorize such marriages,

regardless of an employee’s or annuitant’s state of residency, for purposes of these programs.

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ASSIGNMENT

 Definition

 Reasons for Assigning

 How to Make an Assignment

 After Assignment

 Designations of Beneficiary

 Payment of Benefits

 Viatical Settlements

 Employing Office Responsibilities

 Annuitants and Compensationers

 Termination and Conversion

 Historical Information

DEFINITION

 What Is an Assignment?

 What Coverage Is Affected?

 Living Benefits

 Tax Implications

 Tax Treatment of Viatical Settlement Payments

What Is an Assignment?

An assignment is the transfer of ownership of your life insurance to another individual (s),

corporation, or trustee.

You are still the insured person, but you no longer own the insurance on your life. You continue

to pay the FEGLI premiums from your employee salary or retirement annuity

An assignment is irrevocable. You may not later change your mind or cancel the assignment.

What Coverage Is Affected?

When you make an assignment, you assign your Basic insurance, and Option A and Option B, if

you have that coverage. An assignment applies to all of this coverage; you cannot assign only

part of this coverage.

You cannot assign Option C; nor can you assign your Accidental Dismemberment coverage

(which is part of Basic insurance and Option A for employees).

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You may not assign only part of your insurance or assign only one type of insurance.

Living Benefits

If you elect a partial living benefit, you may later assign all remaining insurance (Basic and/or

Optional if applicable). If you elect a full living benefit, you may later assign Optional

insurance.

Neither you nor an applicant acting on your behalf may elect a living benefit if you have already

assigned your insurance.

REASONS FOR ASSIGNING

 To Comply with a Court Order

 For Inheritance Tax Purposes

 To Obtain Cash before You Die

 To Pay off Debts

To Comply with a Court Order

You may assign your insurance to comply with an order issued by a divorce court requiring that

a former spouse and/or children from a previous marriage be named as the beneficiary of FEGLI

proceeds.

If a court order requires you to make an assignment, you must still complete an assignment form

for the assignment to take place. A court order requiring an assignment is not, in itself, a valid

assignment.

For Inheritance Tax Purposes

Provisions of Federal and/or state laws may give certain advantages when insurance has been

assigned. When you die, the Internal Revenue Service (IRS) determines whether FEGLI

proceeds are included in your gross estate. If you wish to make an assignment for tax

advantages, you should consult with a competent estate tax advisor.

To Obtain Cash before You Die

You may assign your insurance to a viatical settlement company. Under this arrangement you

would assign your Basic, Option A, and Option B to a viatical settlement company and that

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company would pay you cash in exchange for ownership of your FEGLI coverage. A living

benefit, which is paid by the Office of Federal Employees’ Group Life Insurance (OFEGLI),

only allows Basic insurance to be paid before your death and is available only if you have a

medical prognosis that you have nine months or less to live. Viatical settlement companies have

their own guidelines to determine whom they are willing to accept assignments from and from

whom they may pay cash to in other circumstances. Any agreement made with a viatical

settlement company is a private agreement between you and the company.

To Pay off Debts

You may assign your insurance to pay off a debt; however, you cannot cancel the assignment

once the debt is paid. Under this arrangement you would have to find a company or person

willing to accept your assignment in exchange for canceling your debt.

Tax Implications

You may wish to consult a tax attorney and consider getting a ruling from the Internal Revenue

Service (IRS) before you assign your life insurance.

This is especially important if you want to make an assignment to a trust or want to avoid

inheriting the FEGLI coverage upon the death of your assignee.

A tax attorney has specific information about tax laws and IRS regulations and can make a

determination about the tax effect of an assignment.

HOW TO MAKE AN ASSIGNMENT

 Assignment Form

 Multiple Assignees

 Unacceptable Assignments

 Withholdings and Contributions after an Assignment

Assignment Form

You may make an assignment by completing an Assignment, Federal Employees’ Group Life

Insurance (RI 76-10), available at http://www.opm.gov/forms/pdf_fill/ri_76-10.pdf. Only the

insured (or an assignee re-assigning the insurance) may assign the insurance. No one may make

an assignment on the insured’s or assignee’s behalf. The assignment form must be signed by

two witnesses. An assignee cannot be a witness to the assignment.

An assignment is effective on the date your employing office receives the properly completed,

signed, and witnessed form.

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The assignment must specify percentages or fractions of the insurance to go to each assignee.

The percentages must total 100 Percent (or fractions must equal 1.0). You cannot name

contingent assignees in the event the primary assignee(s) predeceases you.

You cannot assign dollar amounts, and you cannot assign specific types of coverage.

Multiple Assignees

An assignment can be made to more than one individual, corporation, or trustee.

If you have multiple assignees, no assignee can cancel coverage unless all assignees agree.

Unacceptable Assignments

Your employing office may return your Assignment (RI 76-10) if it is not completed properly.

These are some of the things that may cause an assignment to be invalid:

 You have elected a full living benefit and have no optional coverage.

 You have named more than one assignee, but they are connected by the word “or.”

 Your name, as shown in the body of the assignment, is significantly different from your

signature. The difference is not significant if initials of first and middle names are used

in one place and full names in the other place.

 You have already assigned your insurance, and your assignee(s) has(have) not assigned

ownership back to you.

 Your date of birth is not shown or is obviously wrong.

 Shares of assignees are not stated correctly (e.g., the shares total less than or more than

100 Percent, or they are given in dollar amounts, rather than percentages or fractions).

 You did not sign the assignment form. (A guardian or someone with power of attorney

cannot make an assignment on your behalf.)

 The assignment form does not have the signatures of two witnesses.

 An assignee is a witness.

 The employing office does not receive the assignment until after you die.

Please note that any erasures or corrections made on the assignment form may have the effect of

invalidating the assignment.

If your assignment is unacceptable, your employing office will “VOID” the form, and return it to

you with an explanation of why it is unacceptable. However, your employing office's failure to

return an incorrect Assignment (RI 76-10) does not make your assignment valid.

Withholdings and Contributions after an Assignment

After making an assignment, by regulation you continue to pay the premiums. Your employing

office must continue to withhold the premiums from your salary or annuity or compensation and

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must continue to make the Government contribution. The assignee may not pay the premiums.

(However, you may wish to negotiate privately to have the viatical settlement company

reimburse you. This is a private transaction between you and the company. Neither your agency

nor OPM is a party to any arrangement you make with a viatical settlement company.)

AFTER ASSIGNMENT

 Your Rights as the Insured

 Rights of the Assignee

 Current Address

Your Rights as the Insured

After making an assignment, you still have the right to:

 Continue Option C coverage, if you have it;

 Elect more insurance (during a FEGLI open season, by providing satisfactory medical

information, or with a life event). Note: All of the new insurance – except Option C –

comes under the existing assignment;

 Elect a post-65 reduction at retirement for Basic insurance (however, if you elect other

than 75 Percent Reduction, you cannot later change to 75 Percent Reduction); and

 Elect a post-65 reduction at retirement for Options B and C (however, if you elect No

Reduction for Option B, you cannot later change to Full Reduction).

After making an assignment, you cannot:

 Revoke that assignment;

 Cancel or reduce insurance;

 Designate a beneficiary;

 Convert to a private policy when FEGLI terminates;

 Elect a living benefit;

 Change your post-65 reduction election for Basic insurance from No Reduction or 50

Percent Reduction to 75 Percent Reduction;

 Make another assignment (unless your insurance has been reassigned back to you); or

 Change your post-65 reduction election for Option B from No Reduction to Full

Reduction.

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Rights of the Assignee

After you assign your insurance, the assignee has the right to:

 Cancel or reduce insurance;

 Change a post-65 reduction election for Basic insurance to 75 Percent Reduction (unless

you had previously elected a partial living benefit);

 Designate and change beneficiaries;

 Convert to a private policy when FEGLI terminates (except Option C);

 Reassign the insurance; and

 Change your post-65 reduction election for Option B from No Reduction to Full

Reduction.

An assignee cannot:

 Increase the amount of insurance;

 Elect a living benefit;

 Make the original post-65 reduction elections;

 Take any action regarding your Option C coverage, if you have it; or

 Change your post-65 reduction election for Option B from Full Reduction to No

Reduction.

Current Address

Each assignee is responsible for keeping your employing office aware of his/her current address.

Employing offices must attach an assignee's change of address notice to the assignment form in

your Official Personnel Folder (or its equivalent).

DESIGNATIONS OF BENEFICIARY

 Your Designation

 Assignee's Designation

Your Designation

An assignment automatically cancels your prior designation(s) of beneficiary. (However, the

agency must continue to retain the cancelled designation(s) in your Official Personnel Folder (or

its electronic equivalent), in case the assignment is later found to be invalid.)

Once an assignment is effective, you no longer have the right to designate a beneficiary.

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Assignee's Designation

Assignees can designate beneficiaries. An assignee's beneficiary(ies) will receive the designated

amount of assigned insurance upon your death. Your assignee is the beneficiary if s/he does not

designate a different beneficiary.

An assignee can designate him/herself as the primary beneficiary and name some other person(s)

as contingent beneficiary(ies) in case s/he dies before you. By naming a contingent beneficiary,

your assignee can simplify life insurance payment.

PAYMENT OF BENEFITS

 If You Die before Your Assignee

 If Your Assignee Dies before You

If You Die before Your Assignee

When you die, benefits will be paid either to your assignee's beneficiary(ies), or to the assignee if

there are no living designated beneficiaries and the assignee did not complete a designation.

If Your Assignee Dies before You

If your assignee dies before you, your assignee’s heir(s) become the new owners of your

insurance and therefore the new assignee(s). These heirs have the same right as the original

assignee to designate a beneficiary.

If the new assignee did not designate a beneficiary, but the previous assignee did designate a

beneficiary, benefits will still be paid to the original (previous) assignee’s designated beneficiary.

Example:

Sue assigned her insurance to her brother, Todd. Todd designated his girlfriend, Tracy, as his

beneficiary. Todd died before his sister Sue, and Todd’s son Vincent inherited all of Todd’s

property, including ownership of Sue’s insurance. Vincent, however, did not designate a

beneficiary; so when Sue died, benefits were paid to Tracy, the beneficiary designated by the

original assignee, Todd.

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If the original assignee did not designate a beneficiary, and s/he dies before you, benefits will be

paid to the new assignee (i.e., the person(s) who inherits the original assignee’s property),

according to the laws of the state in which your assignee lived at the time of his/her death. The

new assignee may also designate a beneficiary, in which case the benefits will be paid to the new

assignee’s beneficiary.

Example:

Vera assigned her insurance to her brother, Warren. Warren died before Vera, and he had not

designated a beneficiary. Warren’s widow, Wendy, inherited all of Warren’s property, so Wendy

became the new owner/assignee. When Vera dies, benefits will be paid to Wendy. If Wendy

chooses to designate a beneficiary, then the benefits will be paid to Wendy’s beneficiary.

VIATICAL SETTLEMENTS

 Information about Viatical Settlement Companies

 Tax Treatment of Viatical Settlement Payments

Information about Viatical Settlement Companies

When you want to assign your insurance to a viatical settlement company, the company may ask

your employing office to provide information about your FEGLI coverage.

Your employing office must have a signed release from you before it can provide the

information; the viatical settlement company should give you the necessary release form. Your

employing office will file copies of the release and the information disclosed to the viatical

settlement company in your Official Personnel Folder (or its electronic equivalent).

Some of the items that a viatical settlement company may request are:

 Group Policy Number – This number is 17000-G, with the Metropolitan Life Insurance

Company.

 Certificate Number – There is no certificate number for FEGLI.

 Copy of the Group Certificate – Your certificate of insurance is a copy of your most

recent Life Insurance Election (SF 2817), or open season election form along with a copy

of the FEGLI Program Booklet for Federal Employees (FE 76-21), or for U.S. Postal

Service Employees (FE 76-20).

 Total Death Benefit – This is the amount of your Basic insurance, plus any Optional

insurance. If you are under age 45, this would also include information about the Extra

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Benefit age multiplication factor. If you are retired and over age 65, this would include

any post-65 reductions that have occurred.

 Waiting Period before the Employee Can Make an Assignment – There is no waiting

period.

 Bi-weekly or Monthly Premium

 Whether the Policy Has Accelerated Benefits – Yes, but only Basic insurance can be

accelerated (i.e., only Basic insurance can be taken as a living benefit). Only employees,

not retirees, can elect a living benefit.

 Whether Partial Acceleration Is Permitted – Yes, i.e., employees (but not retirees) can

elect a partial living benefit.

 Whether the Viatical Settlement Company Can Pay the Premiums – No. By regulation,

premiums must continue to be withheld from your salary, annuity, or compensation. You

can negotiate privately to have the viatical settlement company reimburse you. (This is a

private transaction between you and the company. Neither your agency nor OPM is a

party to any arrangement you make with a viatical settlement company.)

 Whether There Are Any Assignments Against the Policy – The employing office must

check to see whether you have already assigned your insurance and whether that

assignment still appears to be valid.

 Whether the Policy Has a Disability Waiver – There is no disability waiver under FEGLI.

 Whether the Policy Can Be Converted – The group insurance can be converted if it

terminates, other than by voluntary cancellation. If the insurance has been assigned, only

the assignee(s) can convert it, and only if it terminates. EXCEPTION: If the annuity or

compensation of an insured individual is terminated, or if the Department of Labor finds

that an insured compensationer is able to return to duty, his/her FEGLI coverage held as

an annuitant or compensationer stops on the date of the termination or finding. There is

no 31-day extension of coverage or conversion right.

 Whether the Employee Must Have a Minimum Amount of Insurance to be Eligible to

Make an Assignment – No.

 Whether an Irrevocable Beneficiary Can Be Designated – No. Designations can be

changed at any time. Only an assignment is irrevocable.

Tax Treatment of Viatical Settlement Payments

Qualified payments from viatical settlement companies received on or after January 1, 1997, are

not subject to Federal income tax (Pub. L. 104-191, the Health Insurance Portability and

Accountability Act of 1996, Subtitle D, Treatment of Accelerated Death Benefits). Payments

received from a viatical settlement company before that date were subject to Federal income tax.

This law sets qualification standards for viatical settlement providers, terminally ill insured

persons, chronically ill insured persons, and in the case of chronically ill insured persons, how

the payment may be spent. If you are considering assigning your insurance to a viatical

settlement company, you should consult a tax advisor to determine if you and the viatical

settlement company meet the qualification standards. Under this law, to be considered

terminally ill, a person's life expectancy can be no more than 24 months.

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This law amends the Federal Internal Revenue Code, which directly affects Federal income

taxes, not state taxes. However, many states have laws, regulations, or rulings concerning the

taxability of payments received from viatical settlement companies. You may wish to consult a

tax advisor or your state's tax department for specific information concerning state income tax

laws.

EMPLOYING OFFICE RESPONSIBILITIES

 General

 Prohibited Actions

 Notification to Assignee

 When You Die

 When You Separate

General

It is your employing office's responsibility to make information available to employees about

how to make an irrevocable assignment and of the permanence of the assignment. However,

employees are still responsible for knowing about their benefits.

Prohibited Actions

If you assign your insurance, you cannot make another assignment (unless your assignee

reassigned your insurance back to you), designate a beneficiary, elect a living benefit, or cancel

or reduce insurance. Therefore, whenever you want to take any of these actions, your employing

office must verify whether you are eligible to do so by determining whether you have a valid

assignment on file.

If you are hired after a break in Federal service of less than 31 days, your employing office must

check your Official Personnel Folder (or its electronic equivalent) to determine whether there is a

valid assignment on file. Your assignment remains valid unless your break in service is 31 days

or more.

Notification to Assignee

When you make an assignment, your employing office will notify each assignee that you have

assigned ownership of your life insurance. The notice will include the amount of insurance you

assigned and will give the percentage of the total insurance that the assignee now owns. The

notice will also inform the assignee of his/her responsibility for notifying the employing office of

any change of address. See below for a sample notice.

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Your employing office must also provide each assignee a copy of FEGLI Program Booklet for

Federal Employees (FE 76-21), or for U.S. Postal Service Employees (FE 76-20). a copy of the

completed form Assignment, Federal Employees’ Group Life Insurance Program (RI 76-10),

and a blank Designation of Beneficiary (SF 2823).

Sample Notice

This is a sample notice that your employing office can use:

Dear (assignee's name):

This is to notify you that (employee's name) has assigned _____ Percent

ownership of his/her coverage in the Federal Employees' Group Life Insurance

(FEGLI) Program to you. (Employee's name) has Basic insurance (as applicable:

plus Option A-Standard and Option B-Additional at _____ times his/her annual

pay). The enclosed booklet explains the features of the different types of

insurance.

You are the beneficiary of the life insurance coverage, and you will be entitled to

the benefit upon (employee's name)'s death. However, we urge you to designate a

contingent beneficiary to receive the benefits in the event that you die before

(employee's name). To do this, complete the attached Designation of Beneficiary

form and return it to (name and address of employing office). To designate a

contingent beneficiary, name yourself as primary beneficiary and another person

to receive benefits in case you die before the insured person. See example 3 on

the Back of Part 1 of the Designation of Beneficiary form.

It is important that you tell us when your address changes, so that we can notify

you if events occur that affect the life insurance coverage that has been assigned

to you. When you write to tell us about a change of address, be sure to include

the name and Social Security number of the insured employee. Whenever your

named beneficiary's address changes, please submit a new designation of

beneficiary form showing the updated address.

Sincerely,

(Employing Office Official)

When You Die

When you die, your employing office will send a Claim for Death Benefits (FE-6) to each

assignee at the last known address. If an assignee has designated a beneficiary, the FE-6 will be

sent to the assignee's beneficiary(ies).

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When You Separate

When you separate from service (when the Nature of Action Code for SF 50 (Notification of

Personnel Action) begins with a “three”(3)), your employing office will include on your

separation SF 50 Remark B69: “Employee has assigned ownership of life insurance coverage.”

ANNUITANTS AND COMPENSATIONERS

 Assignment Remains in Effect

 Conversion vs. Continuation

 Assignments by Annuitants and Compensationers

Assignment Remains in Effect

When you retire or become insured as a compensationer and you are eligible to continue FEGLI

coverage, your assignment remains in effect, unless your assignee(s) choose(s) to convert your

insurance to a private policy at the time of your retirement (it cannot be converted afterwards).

Your employing office will transfer the assignment form to OPM with the rest of your FEGLI

documents.

Conversion vs. Continuation

When you have assigned your insurance and you retire or become insured as a compensationer,

your employing office will send a Notice of Conversion Privilege (SF 2819) to each assignee.

Your employing office must also send each assignee a copy of the Agency Certification of

Insurance Status (SF 2821) and a copy of the Assignment (RI 76-10) by which you made the

assignment.

When there are multiple assignees, some may choose to let their share of the FEGLI coverage

continue and some may choose to convert their share to a private policy. The amount of

insurance continued or converted depends on the assignee's share of the total; if the amount is

not a multiple of $1,000, it is rounded up to the next thousand dollar amount.

Example

Yolanda has Basic and Option A. She assigns her insurance to three assignees as follows:

Zachary gets 50 Percent, Adrian gets 30 Percent, and Arlene gets 20 Percent. At the time

Yolanda retires, her Basic Insurance Amount is $90,000.

Zachary wants to let his share of the insurance continue into retirement; Adrian and Arlene want

to convert their shares.

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As a result of Adrian and Arlene’s elections to convert, Yolanda will carry $45,000 of Basic

insurance and $5,000 of Option A into retirement (Zachary's share [$90,000 x 50 Percent and

$10,000 x 50 Percent]). Withholdings from her annuity will be based on these amounts.

Adrian can convert up to $27,000 of Basic insurance and up to $3,000 of Option A ($90,000 x 30

Percent and $10,000 x 30 Percent). Arlene can convert up to $18,000 of Basic insurance and

$2,000 of Option A ($60,000 x 20 Percent and $10,000 x 20 Percent).

If your assignee(s) choose(s) to continue FEGLI coverage, rather than convert, you must make a

post-65 reduction election on the Continuation of Life Insurance Coverage As an Annuitant or

Compensationer (SF 2818). If you choose other than 75 Percent Reduction for Basic insurance,

the assignee(s) can change to 75 Percent Reduction (unless you previously elected a partial living

benefit). You must also make a post-65 reduction election for Option B, if you have it. If you

choose No Reduction, the assignee(s) can change to Full Reduction.

Assignments by Annuitants and Compensationers

Annuitants and compensationers can assign their insurance in the same manner as employees.

If you are an annuitant and wish to make an assignment, you must contact OPM’s Retirement

Operations Center, P.O. Box 45, Boyers, PA 16017-0045 for a copy of the form, or download it

at http://www.opm.gov/healthcare-insurance/life-insurance/reference-materials/publications-

forms/assignment-of-life-insurance/. The phone number is 1-888-767-6738 and 202-606-0500 in

the DC Metro Area. The phone lines are open from 7:45 AM to 5:00 PM EST Monday through

Friday.

If you are a compensationer still insured as an employee and wish to make an assignment, you

must contact your employing office. If you are insured as a compensationer (you have separated

or completed 12 months in nonpay status), you must contact OPM.

TERMINATION AND CONVERSION

 Termination

 Conversion

Termination

Your assignment terminates 31 days after your FEGLI coverage terminates, unless you are

reemployed during the 31-day period in a position in which you are eligible for life insurance.

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Once terminated, an assignment is not reinstated if you get FEGLI again at a later date. If you

still want the insurance to be assigned, you must complete a new Assignment (RI 76-10)

Conversion

When your assigned insurance terminates (other than by voluntary cancellation by all assignees),

each assignee has the right to convert his/her share of the insurance to a private policy on you. If

an assignee's share is not a multiple of $1,000, it is rounded up to the next thousand dollar

amount.

EXCEPTION: If the annuity or compensation of an insured individual is terminated, or if the

Department of Labor finds that an insured compensationer is able to return to duty, his/her

FEGLI coverage held as an annuitant or compensationer stops on the date of the termination or

finding. There is no 31-day extension of coverage or conversion right.

When your assigned insurance terminates, your employing office will send a Notice of

Conversion Privilege (SF 2819), a copy of the Agency Certification of Insurance Status (SF

2821), and a copy of your Assignment (RI 76-10) to each assignee.

If you also have Option C coverage, your employing office will send you a Notice of Conversion

Privilege (SF 2819) and a copy of the Agency Certification of Insurance Status (SF 2821). You

can use these forms only to convert your Option C coverage.

HISTORICAL INFORMATION

Federal judges are allowed to assign their FEGLI coverage beginning July 10, 1984.

All other Federal employees, annuitants, and compensationers are allowed to assign their FEGLI

coverage beginning October 3, 1994.

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LIVING BENEFITS

 What Are Living Benefits?

 Election Procedures

 Effect of a Living Benefit Election

 Miscellaneous Provisions

 Historical Information

WHAT ARE LIVING BENEFITS?

 Definition

 Living Benefits vs. Assignment to a Viatical Settlement Company

 Eligibility

 Amount of Insurance Available for Election

 Limit on Number of Elections

Definition

Living benefits are life insurance benefits paid to you while you are still living, rather than paid

to a beneficiary or survivor when you die. (They are also known as accelerated benefits in the

private sector.)

Living Benefits vs. Assignment to a Viatical Settlement Company

Living benefits payments come from the Employees' Life Insurance Fund (part of the U.S.

Treasury). Viatical settlement companies are private sector businesses not connected with the

Federal Government. A viatical settlement is an exchange for cash for the life insurance due to a

terminally or chronically ill person. (See Assignment chapter at [link]).

The amount of insurance available and the requirements for receiving a living benefit payment

are set forth in Federal law. Viatical settlement companies set their own requirements and

payment amounts. Any contract entered into with a viatical settlement company is a private

agreement between you and the company.

Eligibility

You are eligible to elect a living benefit if you are an employee, annuitant, or compensationer

enrolled in the FEGLI Program who has been diagnosed as terminally ill with a life expectancy

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of 9 months or less, the Office of Federal Employees’ Group Life Insurance (OFEGLI) agrees

with that diagnosis, and you have not assigned your insurance.

You cannot apply in advance; you must be terminally ill at the time of application.

Another person may apply for a Living Benefit on your behalf if all of the following conditions

are met: (i) Your physician must certify that you are physically or mentally incapable of making

an election; (ii) The applicant must have power of attorney or a court order authorizing him or

her to elect a Living Benefit on your behalf; (iii) The applicant must place his or her own

signature on the application and attach it to a true and correct copy of the power of attorney or

court order authorizing the applicant to make the election on your behalf; and (iv) The applicant

must either be your sole beneficiary or attach a true and correct copy of each beneficiary’s

written and signed consent.

Amount of Insurance Available for Election

Only Basic insurance is available for payment as a living benefit. Optional insurance cannot be

paid as a living benefit.

If you are an employee, you can elect either a full living benefit, i.e., all of your Basic insurance,

or a partial living benefit (which must be expressed as a multiple of $1,000). Annuitants and

compensationers can elect only a full living benefit.

Limit on Number of Elections

You can elect living benefits only once.

If you elect a full living benefit, you have no Basic insurance left. If you elect a partial living

benefit, you cannot later elect another living benefit from the remaining Basic insurance.

ELECTION PROCEDURES

 Application Process

 Completing the Election

 Living Benefits Approval

 Living Benefits Disapproval

 Employing Office Responsibilities during the Election Process

 Employing Office Processing of a Living Benefit Election

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Application Process

If you (or a power of attorney acting on your behalf) want to apply for a living benefit, you must

contact the Office of Federal Employees' Group Life Insurance (OFEGLI) at 1-800-633-4542.

OFEGLI will send you a Claim for Living Benefits (FE-8).

Note: Agencies cannot obtain a supply of FE-8, and employing offices are not to give this form

to employees who ask about living benefits. Agencies should provide the employee with the

phone number for OFEGLI, as listed above.

When OFEGLI sends the FE-8, it also sends a calculation sheet, so you can estimate the amount

of Basic insurance available. The calculation sheet takes into account the age multiplication

factor for employees under age 45 and the post-65 reduction for annuitants age 65 and over.

The amount available to be paid as a living benefit will be reduced by an amount representing

lost earnings to the Employees' Life Insurance Fund because of the early payment of benefits.

The amount is called an actuarial reduction.

Completing the Election

You complete Part A of the Claim for Living Benefit (FE-8), and your doctor completes Part B.

Send the form back to OFEGLI. The address shown on the FE-8 form may not be current. The

current address is P.O. Box 6080, Scranton PA 18505-6080. The address for overnight

deliveries is OFEGLI, 123 Wyoming Avenue 3rd Floor, Scranton, PA 18503.

OFEGLI determines whether you qualify for a living benefit, not your agency or OPM.

Living Benefits Approval

If OFEGLI approves your living benefits application, you will receive a check along with an

Explanation of Benefits (FE-8C). You can change your mind about electing a living benefit up

until you cash or deposit the check. The effective date of the living benefit election is the date

you cash or deposit the payment.

If you decide not to elect the living benefit, you should write “Void” on the check and return it to

OFEGLI. If the living benefit payment is not cashed before your death, your representative must

return the check to OFEGLI. Your beneficiaries may then file a claim for death benefits.

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Living Benefits Disapproval

If OFEGLI does not approve your living benefit application, you will be notified. There are no

appeal rights; however, you can provide OFEGLI with additional medical evidence to support

your claim or reapply if future circumstances warrant.

Employing Office Responsibilities during the Election Process

When OFEGLI receives your application for a living benefit, it will fax or email your employing

office a Certification for FEGLI Living Benefits for Employees (FE-8A). (If you are retired,

OFEGLI will send a certification form to OPM’s Retirement Office.) Your employing office (or

OPM’s Retirement Office) must certify whether you are enrolled in Basic insurance, whether

you have assigned your insurance, and the amount of your current annual basic pay.

Like the Agency Certification of Insurance Status (SF 2821), the FE-8A requires dual

certification, i.e., it must be certified by both a personnel official and a payroll official.

Employing offices must ensure the addresses of the personnel and payroll offices are complete,

since OFEGLI uses these addresses to send the agency a copy of the Explanation of Benefits

(FE-8C).

It is critical this certification be completed and returned to OFEGLI promptly. Agencies must

fax the completed certification to OFEGLI, at 1-866-554-8357 and then mail the original to

OFEGLI.

If an employing office's personnel and payroll functions are in different geographic locations, the

personnel office can send the FE-8A with its signature directly to OFEGLI and fax a copy to its

payroll office. The payroll office can make its certification on the faxed copy, faxing it to

OFEGLI when it is complete (so OFEGLI can start processing it) and also mailing it. In this

case the required original signatures will be on 2 separate copies of the FE-8A.

Employing Office Processing of a Living Benefit Election

When your employing office receives notification of a living benefit election (i.e., a copy of the

FE-8C, Explanation of Benefits), the personnel office must produce a Notification of Personnel

Action (SF 50). The appropriate Nature of Action code for the SF 50 is either 805 (Elected full

living benefits) or 806 (Elected partial living benefits).

Note: There will be no change to the codes used in box 27 on this form. The code for FEGLI

will remain the same as it was before the living benefit election. You still have Basic insurance;

however the amount of insurance in force is either $0 (in the case of a full living benefit) or a

reduced amount (in the case of a partial living benefit).

The “Remarks” section of the SF 50 should state:

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“Code B67

Elected full living benefits on ________.

Basic coverage now equals zero.”

“Code B68

Elected partial living benefits on ________.

Post-election Basic Insurance Amount is ________.

Must elect “No reduction” for Basic insurance at retirement.”

The “Remarks” section should state what Optional insurance, if any, you have, including the

number of multiples of Option B and Option C, if applicable.

When the OPM Retirement Office receives notification of a living benefits election, it will make

changes to the online annuity roll system to show that the retiree elected living benefits. No

SF 50 forms are completed for retirees.

EFFECT OF A LIVING BENEFIT ELECTION

 Post-election BIA

 Retirement Election for Post-65 Reductions

 Changes in Withholdings and Contributions

Post-election BIA

When you cash or deposit the living benefits check, OFEGLI sends a copy of the Explanation of

Benefits (FE-8C) to your personnel and payroll offices. This Explanation of Benefits shows the

effective date of your living benefit election and the amount of Basic insurance that remains (the

post-election BIA); if you elected a full living benefit, the post-election BIA is $0.

Your employing office does not calculate the amount of your post-election BIA; this is done by

OFEGLI.

This post-election BIA never changes after the effective date of the living benefits election.

Even if your salary changes, the post-election BIA remains the same. Your premiums also are

based on your post-election BIA. If you are under age 45 at the time of death, OFEGLI will

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multiply the post-election BIA by the appropriate factor. If you are age 45 or older at the time of

death, the age factor used in computing benefits payable upon your death will not change.

Example

Ben elects a partial living benefit; his post-election BIA is $15,000. Three months later he gets a

pay raise; 2 months later he turns 41; 1 month later he dies.

At the time of death, his BIA is $15,000; his pay raise had no effect on his BIA, since a post-

election BIA never changes. Although he was 41 at the time of death, the death benefits are

computed based on age 40 since that was his age at the time of his living benefit election. His

beneficiary(ies) would therefore receive $22,500 (Basic insurance of $15,000 x an age factor of

1.5 [the age factor for age 40]).

Retirement Election for Post-65 Reductions

The BIA for an employee who elects a living benefit cannot change. If you elected a partial

living benefit and you qualify to continue coverage into retirement, you must elect “No

Reduction“ for Basic insurance on the Continuation of Life Insurance Coverage (SF 2818),

unless you decide to cancel or convert your coverage. You cannot change to 75 Percent

Reduction at a later date.

A living benefits election has no effect on your post-65 reduction election for Option B or

Option C.

Changes in Withholdings and Contributions

If you elect a full living benefit, withholdings and contributions for Basic insurance stop.

If you elect a partial living benefit, withholdings and contributions for Basic insurance are

reduced, and based on your post-election BIA.

Changes in withholdings and contributions are effective at the end of the pay period in which

your living benefit election is effective. If the pay period ends before your employing office

receives its copies of the Explanation of Benefits (FE-8C), it must make a retroactive adjustment.

MISCELLANEOUS PROVISIONS

 Optional Insurance

 Accidental Death & Dismemberment Coverage

 Designations of Beneficiary

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 Assignment

 Incorrect Prognosis

 Tax Treatment of Living Benefits

Optional Insurance

A living benefits election has no effect on your Optional insurance. All Optional insurance

remains in place, and your living benefits election has no effect on the withholdings for Optional

insurance.

Although changes in pay do not change the amount of your Basic insurance after a living

benefits election, the amount of Option B insurance does continue to change when pay increases

or decreases. If you elect a partial living benefit, premium withholdings for Basic insurance and

Option B insurance will be based on different amounts.

Accidental Death & Dismemberment Coverage

If you elect a full living benefit, you lose Accidental Death & Dismemberment (AD&D)

coverage on Basic insurance, since your Basic Insurance Amount is $0. (AD&D coverage

remains in effect for Option A.)

If you elect a partial living benefit, you still have AD&D coverage, but only on your post-

election BIA.

Designations of Beneficiary

A living benefit election has no effect on your designation of beneficiary. Option A benefits,

Option B benefits, and any Basic benefits remaining after a partial living benefit election are paid

to your designated beneficiary (or according to the order of precedence, if there is no

designation).

However, if you designated Basic insurance to one beneficiary and Optional insurance to another

beneficiary, and you elect a full living benefit, the beneficiary designated to receive Basic

benefits will not receive any payment when you die. The beneficiary designated to receive

Optional insurance will still receive those benefits.

Assignment

If you have assigned your insurance, you cannot elect a living benefit. Your assignee(s) cannot

elect a living benefit on your behalf.

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If you elect a full living benefit, you can assign Optional insurance. If you elect a partial living

benefit, you may assign any remaining Basic insurance, as well as Optional insurance.

Incorrect Prognosis

If you elect a living benefit and live longer than the expected 9 months, you do not have to repay

the living benefit.

Tax Treatment of Living Benefits

Living benefit payments are not subject to Federal income tax.

You should consult a tax advisor or your state's tax department for specific information

concerning state income tax laws.

HISTORICAL INFORMATION

 Living Benefits Allowed

 Tax Treatment

 Assignment

 Power of Attorney

Living Benefits Allowed

Living benefits first became available July 25, 1995 as a result of Public Law 103-409.

Tax Treatment

Prior to January 1, 1997, living benefits payments were subject to Federal income tax. Effective

January 1, 1997, living benefits payments are not subject to Federal income tax.

Assignment

Until October 17, 1997, individuals who elected a living benefit could not later assign their

remaining insurance.

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Power of Attorney

Effective October 1, 2010, a power of attorney acting on behalf of an insured individual can

apply for the living benefit.

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CLAIMS

 Information for Claimants

 Employing Office Responsibilities

 Amount of Death Benefit Payable

 Timely Notice and Filing of Claims for Accidental Loss

 Payment of Claims

 Payment to a Minor

 Questions regarding Claims

INFORMATION FOR CLAIMANTS

 Claims Processing

 Requirements for Payment of a Claim

 Filing a Claim:

o Active Employee at Time of Death

o Retired or Receiving Compensation at Time of Death

o Option C

 Death of Child Incapable of Self-Support

 Limitation on Payment

Claims Processing

Claims for benefits are adjudicated and paid by the Office of Federal Employees' Group Life

Insurance (OFEGLI), an administrative unit of MetLife that contracts with OPM to pay FEGLI

claims . Any questions about the status of a claim must be directed to that office at

P.O. Box 6080, Scranton PA 18505-6080. The address for overnight deliveries is OFEGLI, 123

Wyoming Avenue 3rd Floor, Scranton, PA 18503.

or by calling 1-800-633-4542. The telephone lines are open from 8:30 AM to 4:00 PM EST.

Overseas beneficiaries should call 1-212-578-2975.

Requirements for Payment of a Claim

OFEGLI can only pay death benefits after it has received:

 Claim for Death Benefits (Form FE-6);

 A certified copy of the death certificate or other satisfactory proof of death; and

 Certification by the employing office for employees, or by OPM’s Retirement Operations

Center for retirees or compensationers. Such certification must include all supporting

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documentation, as described below. Agencies use the Agency Certification of Insurance

Status (SF 2821).

The supporting documentation must include all of your designations of beneficiary (if any).

Your employing office must also send all of your FEGLI election forms, any assignments and

any court order(s) on file that direct payment of FEGLI benefits.

A dismemberment claim must include a physician's statement and a Claim for Accidental Means

Dismemberment Benefits (FE-7).

Filing a Claim

Active Employee at Time of Death

If you are employed at the time of your death, your family or other individual(s) should provide

notification of your death to your employing office. Your employing office will provide a copy

of the Claim for Death Benefits (FE-6) to the person(s) who appear eligible to claim benefits,

although the agency does not determine who is eligible. Each claimant must submit a separate

claim form to your employing office.

Your employing office will forward the claim(s) to OFEGLI, along with the Agency Certification

of Insurance Status (SF 2821), all of your completed original designations of beneficiary, any

assignment forms, any court orders on file, and any other election forms and documents relating

to your insurance status. However, your employing office may tell your survivors/beneficiaries

to send their claim forms and other documentation directly to OFEGLI.

OFEGLI will process the claim(s) once it has received the insurance certification from your

employing office and the claim form(s) from the claimant(s).

Retired or Receiving Compensation at the Time of Death

If you are retired or insured due to receipt of Office of Workers' Compensation Programs

(OWCP) benefits at the time of your death, your claimant(s) should report your death to OPM at

1-888-US-OPM-RET (1-888-767-6738) outside the Washington, DC metropolitan area or 202-

606-0500 within the Washington, DC metropolitan area. Claimants may also report the death

online at http://www.opm.gov/retirement-services/contact-retirement/#General%20Contact/ .

OPM will mail a Claim for Death Benefits (FE-6) form to the person who reports your death.

Each claimant must submit a separate claim form to the Office of Federal Employees' Group Life

Insurance (OFEGLI) at P.O. Box 6080, Scranton PA 18505-6080. The address for overnight

deliveries is OFEGLI at 123 Wyoming Avenue 3rd Floor, Scranton, PA 18503. Claim forms

should not to be sent to OPM. OPM will send the certification of the insured’s FEGLI coverage

to OFEGLI.

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OFEGLI will process the claim(s) once it has received the insurance certification from OPM's

Retirement Operations Center and the claim form(s) from the claimant(s).

Option C

If you are an employee, and an insured family member dies, you must complete Parts A through

C of the Statement of Claim, Option C-Family Life Insurance (FE-6 DEP) and provide it, along

with a certified copy of the death certificate, to your employing office. Your employing office

must complete Part D, Certification of Insurance Status, and send the completed form, with the

death certificate, to OFEGLI.

If you are retired or insured as a compensationer, you must send the FE-6 DEP claim form and a

certified copy of the death certificate to OPM, Retirement Operations Center, P.O. Box 45,

Boyers, PA 16017-0045. OPM will complete Part D of the claim form and send the completed

form with the death certificate to OFEGLI.

If you die after your spouse or eligible child(ren) die, but before Option C benefits are paid

(whether or not you filed a claim), the person(s) eligible for your Basic insurance benefits may

submit a claim for the Option C benefits. If you had assigned your Basic insurance, payment of

Option C benefits will be made under the order of precedence, starting with the 2

on the list

(widow or widower).

Death of Child Incapable of Self-Support

OFEGLI can only pay Option C benefits for a child age 22 or over if the deceased child was

incapable of self-support because of a mental or physical disability that existed before s/he

reached age 22. If you do not have an employing office determination of incapability of self-

support on file, or if the determination has expired, you must provide your employing office with

the information necessary to make this determination.

This determination is made by your employing office, not by OFEGLI or by OPM.

Limitation on Payment

Benefits will not be paid to someone who wrongfully causes the death of the insured person. For

example, if someone wrongfully causes your death, he/she cannot receive Basic, Option A or

Option B benefits, even if he/she is otherwise entitled to those benefits. If you wrongfully cause

the death of one of your insured family members, you cannot receive Option C benefits for that

death.

EMPLOYING OFFICE RESPONSIBILITIES

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 Inviting Claims

 Certification

 Claim Review

 Errors in Certification

 Pre-payment Verification

 Death during 31-day Extension of Coverage

Inviting Claims

Upon your death or dismemberment, your employing office must promptly contact the person(s)

who appear entitled to benefits and provide assistance in filing a claim.

Certification

When you die, your employing office must immediately prepare an Agency Certification of

Insurance Status (SF 2821, available at http://www.opm.gov/forms/pdf_fill/sf2821.pdf) and send

Parts 1 and 2 along with all other supporting documentation, to OFEGLI. Your employing office

should keep the original in your Official Personnel Folder (the OPF, or its electronic equivalent)

until it receives a claim form from you, although it is acceptable for them to send the original.

Part 3 is the file copy. Your employing office will send the original with the claims filed by your

beneficiar(y)ies to OFEGLI. However, to expedite processing, your agency may instead send the

certification to OFEGLI without waiting for your beneficiary’s(ies’) claim forms and direct your

beneficiar(y)ies to send their claim(s) directly to OFEGLI.

With the advent of electronic Official Personnel Folders (eOPFs), many agencies now submit

imaged versions and/or photocopies of original FEGLI documents. This is acceptable as long as

the submitted documents are produced from an official system of records. For more information

refer to Benefits Administration Letter 12-102.

Claim Review

When your employing office receives a claim, it should verify it has been completed properly.

Your name and date of birth as shown on the claim form must agree with the information on the

agency certification. If there is an apparent discrepancy, your employing office should attach a

statement to the claim verifying that both the claim and the agency certification refer to the same

person.

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Errors in Certification

If your employing office discovers an error in its certification of your insurance status, it must

immediately contact the Office of Federal Employees' Group Life Insurance (OFEGLI) at 1-800-

633-4542 (or fax to 1-866-554-8357) to request that payment based on the incorrect certification

not be made. It must send a revised Agency Certification of Insurance Status (SF 2821) showing

the correct insurance amount as soon as possible.

Pre-payment Verification

OFEGLI is required to obtain verification before making payment to beneficiaries of insured

individuals with $200,000 or more of FEGLI coverage, and, at their discretion, to verify any

unclear certification. When seeking pre-payment verification, OFEGLI asks for the insured's

current salary, annual salary (if different), and details on enrollment in Optional insurance, if

applicable.

Any discrepancies identified in the claims selected for pre-payment verification must be resolved

before OFEGLI can authorize payment of benefits.

Employing offices must cooperate with OFEGLI in doing these pre-payment verifications and

resolutions of discrepancies. This will ensure timely payments to the beneficiaries.

Death during 31-day Extension of Coverage

If you die after your FEGLI terminates, but within the 31-day extension of coverage, your

employing office must make sure that the Agency Certification of Insurance Status (SF 2821)

shows the date of and reason for termination of insurance coverage, not the date of your death.

The 31-day extension of coverage does not include Accidental Death & Dismemberment

(AD&D) coverage.

The 31-day extension only applies to terminated coverage. It does not apply when you

voluntarily waive or cancel coverage.

AMOUNT OF DEATH BENEFIT PAYABLE

The amount of death benefit payable is always the amount of insurance in force on the date of

your death. It will be based on your annual rate of basic pay and the FEGLI coverage you are

enrolled in on the date of death. The “regular” death benefit (Basic and Option A and Option B

if applicable) is payable regardless of the cause of death. For employees, accidental death

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benefits may also be payable, depending on the cause of death. Accidental Death and

Dismemberment (AD&D) coverage stops when your employment ends. It does not carry into

retirement.

You cannot have more than one amount of each type of insurance in force, even if you are

concurrently employed, or even if you were employed under different retirement systems. In the

event there seems to be overlapping amounts of insurance, the higher amount will be paid.

Example #1

Beverly separates from service in a position in which she had Basic insurance of $80,000,

Option A, and 1 multiple of Option B worth $78,000. During the 31-day free extension of

coverage period, she is employed in a position where she has Basic coverage of $60,000, Option

A, and 1 multiple of Option B worth $58,000. After she starts the new job, but before the end of

the 31-day extension, she dies.

Benefits payable will be based on the Basic and Option B insurance she had from her first

employment, since that is the higher amount; Option A benefits are $10,000. (If her death was

the result of an accident, however, the amount of benefits payable would be increased by

$70,000: $60,000 accidental death benefit under Basic insurance from her second position and

$10,000 accidental death benefit under Option A from her second position.)

Exception: If you are a reemployed annuitant at the time of your death, the Option B coverage

that you chose to carry (either your annuitant coverage or your coverage as an employee) will be

paid, regardless of which is the higher amount.

Example #2

Sally retires from her position with the Tennessee Valley Authority (TVA), in which she had

Basic insurance worth $36,000 that she was eligible to carry into her TVA-retirement. Two

years later she is employed in a position with the Social Security Administration (SSA) under the

Federal Employees Retirement System (FERS), where she has Basic coverage worth $40,000

and Option A worth $10,000.

Even though she receives annuity or salary under two different retirement systems, she is only

entitled to be insured under one FEGLI enrollment. Her coverage should be treated the same as

if she were a reemployed annuitant. Her coverage as an annuitant under TVA is suspended while

she is “reemployed”, and she pays premiums for the coverage under the FERS position. If she is

reemployed at the time of her death, benefits payable are based on the higher of the two

coverages. If she retires from his FERS position and is eligible to continue her SSA-acquired

FEGLI coverage into retirement, she must choose between the two coverages.

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TIMELY NOTICE AND FILING OF CLAIMS FOR

ACCIDENTAL DISMEMBERMENT

 Filing of Claim

 Late Notice and Filing

Filing of Claim

A claim for accidental dismemberment benefits, with proof of the loss, must be submitted within

one year of the loss, on the FE-7 (Claim for Accidental Means Dismemberment Benefits,

available at http://www.opm.gov/forms/pdf_fill/fe7.pdf).

Late Filing

If it is not possible to file a claim within the specified times, you must file your claim as soon as

reasonably possible, along with an explanation of the delay. OFEGLI will determine if the

explanation is satisfactory enough to allow payment of benefits.

PAYMENT OF CLAIMS

 Payment of Claims

o Payment of FEGLI Claims

o Federal Income Tax

o Payments of Less Than $5,000

o Payments of $5,000 or More

o Total Control Account

Payments of FEGLI Claims

The Office of Federal Employees’ Group Life Insurance (OFEGLI) is an administrative unit of

Metropolitan Life Insurance Company that pays claims for the Federal Employees’ Group Life

Insurance (FEGLI) Program.

When an insured enrollee dies while insured under FEGLI, the beneficiary(ies) or other survivors

will receive the insured’s Basic, and Option A/Option B benefits (if enrolled).

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Federal Income Tax

Life insurance proceeds are not considered taxable income for personal income tax purposes.

Interest paid on FEGLI proceeds, however, is reportable as income for Federal income tax

purposes. The Office of Federal Employees' Group Life Insurance pays interest on claims from

the date of the insured's death to the date of the payment. OFEGLI pays a maximum of two

years interest, even if the time from date of death to date of payment is over two years. You may

wish to consult your tax advisor for further advice.

Payments of Less Than $5,000

If OFEGLI is paying the beneficiary less than $5,000, the beneficiary will receive a check.

Payments of $5,000 or More

If OFEGLI is paying the beneficiary $5,000 or more, the beneficiary will have a choice of two

ways to receive the payment:

 A check; or

 A MetLife Total Control Account (TCA), an interest bearing account set up in the

beneficiary’s name with Metropolitan Life Insurance Company (MetLife)

If the beneficiary is receiving $5,000 or more and does not make a decision on how to receive

payment, a MetLife Total Control Account will be set up in the beneficiary’s name.

Total Control Accounts

The MetLife TCA is a settlement option offered by MetLife for the payment of claims. It

is also known as a “retained asset account (RAA)”. A MetLife TCA is not a checking,

savings, or money market bank account. Since the MetLife TCA is not a bank account, it

is not insured by the Federal Deposit Insurance Corporation (FDIC) or any government

agency. Instead, MetLife guarantees the full amount in the MetLife TCA, including all

interest earned. MetLife’s guarantee is further backed by the beneficiary’s respective state

guaranty association. Maximum guarantee limits vary from state to state and may change

over time. If the beneficiary chooses a MetLife TCA, the relationship is between the

beneficiary and MetLife, not with the federal government or any of its agencies.

The MetLife TCA offers a minimum guaranteed annual effective interest rate, meaning

that MetLife commits to pay the beneficiary at least that specified rate of interest on the

money in the account. The beneficiary begins earning interest the day the MetLife TCA is

created. Interest is earned daily, but is not credited until the last day of the month. The

interest rate offered on the MetLife TCA may be better or worse than the prevailing

market rates. The MetLife TCA is a product offered by MetLife on which the company

may make a profit. The beneficiary pays no monthly maintenance fees on a MetLife TCA.

The beneficiary has complete control of, and access to, the entire amount of the insurance

proceeds. The beneficiary can withdraw the full amount from the MetLife TCA at any

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time. The information packet the beneficiary receives will include a draft book (similar to

a checkbook). At any time and at no cost, the beneficiary can write drafts (similar to

checks) from a minimum of $250 up to the full balance of the account. In addition, the

beneficiary will receive periodic activity statements, and can designate a beneficiary for

the account. If the beneficiary chooses the MetLife TCA settlement option, he or she will

receive more detailed information from MetLife when the account is opened.

Claimants who need more information about the MetLife TCA settlement option, how

retained asset accounts work in general, and how insurance companies are regulated in a

claimant’s respective state can contact the National Association of Insurance

Commissioners (NAIC). NAIC is the standard-setting and regulatory support organization

created and governed by the chief insurance regulators from the 50 states, the District of

Columbia and five U.S. territories, and assists state insurance regulators, individually and

collectively, in serving the public interest regarding insurance issues. Claimants can visit

www.naic.org. The site also provides links to the respective state insurance commissions

at http://www.naic.org/state_web_map.htm.

PAYMENT TO A MINOR

 Payment to a Guardian

 Payment to the Minor's Parents

 Held on Deposit

 Designations in Trust for a Minor

Life insurance benefits cannot be paid to a minor. The age of adulthood for the FEGLI Program

is 18, unless the state in which the minor lives has established a lower age of adulthood. In that

case, the lower age applies.

When a minor is entitled to payment of benefits, OFEGLI will:

 Pay the court-appointed guardian of the minor child's estate;

 Pay the parent(s) of the minor child, if the proceeds are $10,000 or less; or

 Hold the proceeds on deposit until the minor child reaches adulthood.

Payment to a Guardian

A parent does not automatically qualify as a guardian of the child’s estate. S/he must apply to be

the guardian. A court must appoint a guardian and grant to the guardian the authority to collect

money on behalf of the child. The guardian then can submit a claim to OFEGLI with proof of

the guardianship, and OFEGLI will pay benefits to the guardian on behalf of the minor.

Payment to the Minor's Parents

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When the benefits payable to a minor do not exceed $10,000, OFEGLI will release the funds to

the minor's parent(s), provided that the parent(s) agree(s) in writing to meet all of the following

conditions:

 The parent(s) will hold such amount for the sole use and benefit of the minor until the

minor reaches adulthood;

 The parent(s) will account to the minor for such amount when the minor reaches

adulthood; and

 The parent(s) will hold OFEGLI harmless in the event the minor, when he/she reaches

adulthood, brings any legal action challenging OFEGLI's payment of such amount to the

minor's parent(s).

Held on Deposit

If there is no guardian and there are no plans to appoint one, and the proceeds are greater than

$10,000, OFEGLI will hold the funds in the minor's name in an interest-bearing account.

OFEGLI will pay the funds, plus interest, to the minor when he/she reaches adulthood.

Designations In Trust For A Minor

When a designation of beneficiary calls for payment to be made in trust for a minor, OFEGLI

will determine whether a trust has been established and whether payment can be made in

accordance with the designation and trust. If not, then OFEGLI will request that a guardian be

appointed by a court. If no guardian is appointed, then payment will be made either to the parent

if the proceeds are less than $10,000, or held on deposit until the minor reaches adulthood.

QUESTIONS REGARDING CLAIMS

If a claimant has a question regarding the status of a claim, he/she must contact OFEGLI at

1-800-633-4542. Overseas beneficiaries should call 1-212-578-2975.

The following information should be provided to OFEGLI:

1. The name of the insured employee/retiree/compensationer

2. The insured's social security number

3. The name of the deceased (if different than above), and

4. The date of death of the deceased

5. Contact information for the claimant(s)

If a claimant thinks OFEGLI made an error in paying benefits, s/he must contact OFEGLI.

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If a claimant thinks s/he is due money from FEGLI benefits and that legal action is necessary to

get the money, the claimant must take action in Federal court against MetLife, the company that

OPM contracts with, not against OPM.

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GLOSSARY OF TERMS

A - B - C - D - E - F - I - L - O - P - R - S - T - U - V - W

Accidental Death

Death caused solely through violent, external, and accidental means. This has meaning under

FEGLI if, as a direct result of the bodily injuries, independently of all other causes, you die

within 1 year of the accidental injury.

Accidental Death & Dismemberment (AD&D) Exclusions

The Office of Federal Employees’ Group Life Insurance (OFEGLI) will not pay AD&D benefits

if your death or loss in any way results from, is caused by, or is contributed to by:

 physical or mental illness;

 the diagnosis of or treatment of a physical or mental illness;

 ptomaine or bacterial infection (however, OFEGLI will pay AD&D benefits if the loss is

caused by an accidentally sustained external wound);

 a war (declared or undeclared), any act of war, or any armed aggression against the

United States, in which nuclear weapons are actually being used;

 a war (declared or undeclared), any act of war, or any armed aggression or insurrection in

which you are in actual combat at the time bodily injuries are sustained;

 suicide or attempted suicide;

 injuring yourself on purpose;

 illegal or illegally obtained drugs that you administer to yourself;

 driving a vehicle while intoxicated, as defined by the laws of the jurisdiction in which

you were operating the vehicle.

Accidental Dismemberment

Bodily injuries caused solely through violent, external and accidental means. This has meaning

under FEGLI if, as a direct result of the bodily injuries, independently of all other causes, you

lose your limb(s) or eyesight in one or both eyes within 1 year of the accidental injury.

 Loss of hand means loss by severance at or above the wrist joint, or equivalent loss, as

determined by OFEGLI.

 Loss of foot means loss by severance at or above the ankle joint, or equivalent loss, as

determined by OFEGLI.

 Loss of sight means total and permanent absence of any usable vision in one eye.

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Acquisition of an Eligible Child

Acquisition of an eligible child occurs when a child is born to the insured; the insured adopts a

child; the insured acquires a foster child; the insured’s stepchild or recognized natural child

moves in with the insured; an otherwise eligible child’s marriage is dissolved by divorce or

annulment, or his or her spouse dies; or the insured gains custody of an eligible child.

Age Multiplication Factor

A factor used to determine the extra amount of Basic insurance payable at the time of your death,

if you die before age 45 (also referred to as the “extra benefit”). Please see the table of extra

benefit amounts.

Agency (see also “Employing Office”)

A department or independent establishment of the executive, legislative, or judicial branch of the

United States Government. This includes Government-owned or -controlled corporations, the

District of Columbia Government (for certain eligible employees), and Gallaudet College. This

term refers to the whole organization, as distinguished from its subdivisions and field

installations.

“Independent establishment” includes the Senate, the House of Representatives, the Library of

Congress, the Office of the Architect of the Capitol, the Administrative Office of the United

States Courts, and the Supreme Court of the United States.

In the executive branch, the Department of Defense, Department of the Army, Department of the

Navy, and Department of the Air Force are considered to be separate agencies.

Annuity

A retirement benefit (pension) paid on a monthly basis.

Annuitant

A former employee (retiree) entitled to an annuity under a retirement system established for

employees. This includes the retirement system of a nonappropriated fund instrumentality of the

Department of Defense or the Coast Guard.

Annuity Starting Date

The effective date of your annuity. This date may be retroactive. Also called “annuity

commencing date.”

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Assign and Assignment

Your irrevocable (permanent – it can’t be undone) transfer of ownership of your FEGLI

coverage (except Dismemberment coverage and Option C) to another individual, corporation,

trust, or other entity.

Assignee

The individual, corporation, trust, or other entity to whom you irrevocably transfer ownership of

your FEGLI coverage (except Dismemberment coverage and Option C).

Automatic Cancellation of Waiver

The automatic entitlement to Basic insurance and ability to elect Optional insurance if you are

reinstated to a FEGLI eligible position after a break in service of at least 180 days.

Basic Insurance

The coverage, based on your annual rate of basic pay, which you automatically have as an

eligible employee unless you waive (cancel) it.

Basic Insurance Amount (BIA)

The amount of your Basic insurance on which you pay premiums. It is determined by:

 taking your annual rate of basic pay;

 rounding it up to the next even $1,000; and

 adding $2,000.

Beneficiary

The individual, corporation, trust, or other entity that is eligible to receive FEGLI benefits when

you die.

Cancellation

The stopping of FEGLI coverage by voluntary action. Also called “waiver.” You may cancel

coverage at any time.

To cancel coverage an employee must complete an SF 2817 (or its electronic equivalent if you

work for an agency that utilizes online electronic enrollment and recordkeeping) waiving

coverage. An annuitant or compensationer must write a letter to the retirement system stating

that he/she no longer wants Basic or all or part of Optional life insurance coverage. Reducing

the number of multiples of Option B or Option C is a cancellation of those multiples.

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Cancellation also happens if you agree to make direct premium payments, then fail to do so

within the required timeframe.

Canceling a Waiver

Obtaining Basic or Optional life insurance coverage after you have previously waived or

cancelled it.

CFR

Code of Federal Regulations. The FEGLI regulations are found at part 870, title 5 of the Code of

Federal Regulations.

Child (as used in the definition of family member (for Option C) and as used with life events)

 a child born within marriage;

 an adopted child;

 a stepchild or foster child who lives with you in a regular parent-child relationship; or

 a recognized natural child.

It does not include a stillborn child or a grandchild (unless the grandchild qualifies as a foster

child).

Your child must be unmarried and under age 22 or, if age 22 or over, must be incapable of self-

support because of a physical or mental disability that existed before the child reached age 22.

Child (as used in the order of precedence for payment of benefits)

 a child born within marriage;

 an adopted child; or

 a recognized natural child.

It does not include a stepchild, a stillborn child, a grandchild, or a foster child.

Adopted children inherit from their adoptive parents under the order of precedence, not from

their birth parents (unless they are designated beneficiaries). However, a child who is adopted

by the spouse of a birth parent inherits from that birth parent.

OFEGLI cannot pay benefits to a minor. A child who has reached the age of 18 is considered an

adult and can receive a benefit payment in his/her name. But if the age of adulthood where the

individual has legal residence is set at a lower age, the child is considered an adult upon reaching

that lower age.

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Compensation

The compensation under Subchapter I of Chapter 81 of Title 5, United States Code, which is

payable because of an on-the-job injury or disease.

Compensationer

An employee or former employee who is receiving compensation and who the Department of

Labor, Office of Workers’ Compensation Programs (OWCP), determines is unable to return to

duty.

Concurrent Employment

Legally serving in more than 1 position at the same time.

Contributions

Amounts which the Government pays from its salary appropriations or other available funds as

the employer's share of the cost of Basic insurance.

Conversion

The exchange of FEGLI coverage for insurance under an individual policy purchased from a

private insurance company listed by the Office of Federal Employees’ Group Life Insurance

(OFEGLI) and approved by OPM.

Court Order

A court decree of divorce, annulment, or legal separation; or a court-approved property

settlement agreement relating to any court decree of divorce, annulment, or legal separation-that

requires benefits to be paid to a specific person or persons and is received in the employing office

before the insured dies. A court order has meaning under FEGLI if it requires FEGLI benefits to

be paid expressly to a specific person or persons.

Covered Position

A position in which an employee is not excluded from FEGLI eligibility by law or regulation.

Date of retirement

The starting date of annuity. This date may be retroactive.

Days

Calendar days.

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Dependent

Living with or receiving regular and substantial support from you, the insured individual.

Designation of Beneficiary

A notice, signed by you, witnessed and signed by two persons, and on file with the appropriate

office prior to death indicating the person(s), firm, corporation or legal entity you want to receive

your life insurance benefits. The form generally used for life insurance designations is the SF

2823 (Designation of Beneficiary, available at http://www.opm.gov/forms/pdf_fill/sf2823.pdf).

Employee

An individual appointed or elected to a position in or under the executive, legislative, or judicial

branch of the United States Government, as defined at 5 U.S.C. 8701(a).

Employing Office

The agency office (or retirement system office) that has responsibility for life insurance actions.

 The Administrative Office of the United States Courts is the employing office for judges

of the following courts:

All United States Courts of Appeals;

All Unites States District Courts;

The Court of International Trade;

The Court of Federal Claims; and

The District Courts of Guam, the Northern Mariana Islands, and the Virgin

Islands.

 The Washington Headquarters Services is the employing office for judges of the United

States Court of Appeals for the Armed Forces.

 The United States Tax Court is the employing office for judges of the United States Tax

Court.

 The United States Court of Veterans Appeals is the employing office for judges of the

United States Court of Veterans Appeals.

Extension of Coverage

Automatic continuation of your life insurance coverage for 31 days after your life insurance

ends, unless your coverage ends by your waiver or cancellation of coverage or because your

annuity or compensation terminates. The 31-day extension of coverage does not include AD&D

coverage.

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Family Member

A spouse (including a valid common law or same-sex marriage) and unmarried dependent

eligible child(ren).

Foster Child

As used in the definition of family member (for Option C) and for life events, a foster child is a

child:

 who is unmarried and under age 22 (if the child is over age 22, he/she must be incapable

of self-support because of a physical or mental disability that existed before age 22);

 who lives with you;

 who has a parent-child relationship with you, not the child’s biological parent;

 who is dependent upon you for his/her primary source of financial support; and

 whom you expect to raise to adulthood.

Immediate annuity

 An annuity that begins no later than 1 month after the date the insurance would otherwise

stop (the date of separation from service); or

 An annuity under 5 CFR 842.204(a)(1) for which the starting date has been postponed

under 5 CFR 842.204 (called an MRA+10 annuity).

Incontestability

A statutory provision allowing coverage you received erroneously to become valid.

Incontestability applies if it has been at least 2 years between the time the error was made and the

time the error was discovered and you paid the applicable premiums during that time. For

annuitants and compensationers, incontestability applies if you erroneously continued insurance

upon retirement or entitlement to compensation under subchapter I of chapter 81 of title 5 U.S.C.

In Force

The amount of insurance in force is the amount of coverage you have at any particular point in

time.

Inter Vivos Trust

A trust that you establish during your lifetime.

Life Event

For purposes of electing or increasing Option B and/or Option C coverage, a life event is:

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 Marriage (including a valid common-law or same-sex marriage);

 Divorce (including a valid common-law or same-sex marriage);

 death of spouse; or

 acquiring an eligible child.

Living Benefit

A life insurance benefit (Basic insurance only) paid to you while you are still living, rather than

paid to a beneficiary after you die. To qualify for a living benefit you must be terminally ill,

with a life expectancy of 9 months or less.

OFEGLI

The Office of Federal Employees' Group Life Insurance, an administrative unit of Metropolitan

Life Insurance Company which makes payments to beneficiaries under the FEGLI contract.

OFEGLI is not a Federal agency. It is staffed by employees of the life insurance contractor.

OFEGLI is located in Oriskany, NY. Its address for mailing processing is P.O. Box 6080,

Scranton, PA 18505-6080. The address for overnight deliveries (such as Federal Express) only

is OFEGLI, 123 Wyoming Avenue, 3rd Floor, Scranton PA 18503. The phone number is 1-800-

633-4542. The phone lines are open from 8:30 AM to 4:00 PM (EST).

Open Season

Time period set by OPM in which employees may elect or increase life insurance coverage,

regardless of any current waiver of insurance in effect. FEGLI Open Seasons are not held

annually and are infrequent.

OPM

The U.S. Office of Personnel Management, the Federal agency charged with administering the

FEGLI Program and the contract between the government and MetLife. .

Option A

$10,000 in coverage that you can elect in addition to Basic insurance. Also called Standard

Optional Insurance.

Option B

Coverage equal to one, two, three, four, or five multiples of your annual basic rate of pay that

you can elect in addition to Basic insurance. Also called Additional Optional Insurance.

Option C

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Coverage to insure your spouse and eligible child(ren) that you can elect in addition to Basic

insurance. You can elect one, two, three, four or five multiples (each multiple equals $5,000 for

a spouse and $2,500 for an eligible child). Also called Family Optional Insurance. It is payable

to you, the insured, based on the death of an eligible family member.

Optional Insurance

Insurance that you can elect in addition to Basic insurance. There are three types of Optional

insurance: Option A, Option B, and Option C.

Order of Precedence

Under Federal law, the order* in which life insurance benefits are paid to your survivors:

1. your designated beneficiary or beneficiaries;

2. if there is no designated beneficiary, your widow or widower;

3. if neither of the above, your child or children in equal shares, with the share of any

deceased child distributed among the descendants of that child (see “Payment to a

Minor”);

4. if none of the above, to your parents in equal shares – or the entire amount to the

surviving parent;

5. if none of the above, to the executor or administrator of your estate;

6. if none of the above, to the next of kin as determined under the laws of the State where

you lived.

*Exception: The order of precedence does not apply when you have validly assigned your

insurance or when a valid court order is on file.

OWCP

The Office of Workers' Compensation Programs, U.S. Department of Labor, which administers

Subchapter I of Chapter 81 of Title 5, United States Code.

Parent

 The mother or father of a child born within marriage or an adopted child;

 The mother of a child born outside of marriage; or

 The father of a child born outside of marriage, if the child meets the definition of a

recognized natural child.

Pay and Duty Status

Time when you are actually working; it does not include time on annual or sick leave, leave

without pay, excused absence, military leave, or other absence from duty. Required for FEGLI

coverage to initially become effective.

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Post-65 Reduction

The schedule by which your insurance coverage as an annuitant reduces from its original

retirement amount after your 65

birthday (or after retirement, if later). For Basic insurance, the

choices are 75 Percent Reduction (2% monthly), 50 Percent Reduction (1% monthly), and No

Reduction. For Option B and Option C, the choices are Full Reduction (2% monthly) and No

Reduction. There is no choice for Option A; it reduces by 75 Percent (2% monthly from its

original amount of $10,000.

Recognized Natural Child

A child born outside of marriage. An insured individual is considered to be the father of such a

child under the following conditions:

 The individual acknowledged paternity in writing;

 A court ordered the individual to provide support;

 Before the individual died, a court pronounced him to be the father;

 The individual names himself as the father on a certified copy of the public record of

birth or church record of baptism; or

 Public records, such as records of schools or social welfare agencies, show that – with his

knowledge – the individual was named as the father of the child.

If paternity is not established by one of the above means, OFEGLI may consider other evidence,

such as the child's eligibility as a recognized natural child under other State or Federal programs

or proof that the father included the child as a dependent child on his income tax returns.

Reconsideration

The final level of administrative review of an employing office’s initial decision to determine if

the employing office followed the law and regulations correctly when making the initial decision

concerning FEGLI eligibility and coverage. It must be done at the same level or above at which

the initial decision took place.

Regular Parent-Child Relationship

 Exercising parental authority, responsibility, and control over the child;

 Caring for, supporting, and disciplining the child; and

 Making decisions about the child’s education and medical care.

Return to Duty

(compensationers only)

Return to the duty or occupation or work that you were doing at the time of the injury.

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Separation

Leaving Federal service, either by resignation, retirement, being laid off, or being fired.

Service

Federal civilian service that is creditable under Subchapter III of Chapter 83 or Subchapter II of

Chapter 84 of Title 5, United States Code. This includes service under a nonappropriated fund

instrumentality (NAF) of the Department of Defense or the U.S. Coast Guard for an individual

who elected to remain under a retirement system established for employees described in Section

2105(c) of Title 5, United States Code.

Terminal Leave

Leave taken immediately prior to separation.

Terminally Ill

(for purposes of qualifying for a Living Benefit)

Having a medical prognosis of a life expectancy of 9 months or less.

Termination

The stopping of an insured’s FEGLI coverage by involuntary action.

Testamentary Trust

A trust that is created by your will at your death.

Total Control Account

The MetLife TCA, also known as a retained asset account, is a settlement option offered by

MetLife and an alternative to a lump sum check for the payment of FEGLI claims.

Underdeduction

Failure to withhold the required amount of life insurance deductions from your pay, annuity, or

compensation. This includes nondeductions (when none of the required amount is withheld) and

partial deductions (when only part of the required amount is withheld). If there is no pay during

a pay period, there is no underdeduction.

U.S.C.

United States Code.

U.S. Office Of Personnel Management

231

Viatical Settlement Firm

A private company that exchanges cash for assignment of life insurance to a terminally or

chronically ill person.

Waiver

 Not electing a particular type of coverage or multiple of coverage (for Option B and

Option C); or

 Cancellation of coverage.

Withholdings

Amounts deducted from your pay, annuity, or compensation for the full cost of Optional

insurance and your share of the cost of Basic insurance.

SF50 Equivalents of Insurance Codes

INSURANCE SF 50 Code

An employee in a position excluded from FEGLI coverage by law or regulation. A0

FEGLI coverage as an employee ended due to completion of 12 months in nonpay status. A1

(Applicable even when employee remains in nonpay status with the agency but continues all or

some of the FEGLI coverage as a compensationer while in receipt of workers' compensation).

Waived B0

Basic only C0

Basic + Option A D0

Basic + Option C (1x) E1

Basic + Option C (2x) E2

Basic + Option C (3x) E3

Basic + Option C (4x) E4

Basic + Option C (5x) E5

Basic + Option A +Option C (1x) F1

Basic + Option A +Option C (2x) F2

Basic + Option A +Option C (3x) F3

Basic + Option A +Option C (4x) F4

Basic + Option A +Option C (5x) F5

Basic + Option B (1x) G0

Basic + Option B (1x) + Option A H0

Basic + Option B (1x) + Option C (1x) I1

Basic + Option B (1x) + Option C (2x) I2

Basic + Option B (1x) + Option C (3x) I3

Basic + Option B (1x) + Option C (4x) I4

Basic + Option B (1x) + Option C (5x) I5

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Basic + Option B (1x) + Option A + Option C (1x) J1

Basic + Option B (1x) + Option A + Option C (2x) J2

Basic + Option B (1x) + Option A + Option C (3x) J3

Basic + Option B (1x) + Option A + Option C (4x) J4

Basic + Option B (1x) + Option A + Option C (5x) J5

Basic +Option B (2x) K0

Basic + Option B (2x) + Option A L0

Basic + Option B (2x)+ Option C (1x) M1

Basic + Option B (2x)+ Option C (2x) M2

Basic + Option B (2x)+ Option C (3x) M3

Basic + Option B (2x)+ Option C (4x) M4

Basic + Option B (2x)+ Option C (5x) M5

Basic + Option B (2x) + Option A + Option C (1x) N1

Basic + Option B (2x) + Option A + Option C (2x) N2

Basic + Option B (2x) + Option A + Option C (3x) N3

Basic + Option B (2x) + Option A + Option C (4x) N4

Basic + Option B (2x) + Option A + Option C (5x) N5

Basic +Option B (3x) 90

Basic + Option B (3x)+ Option A P0

Basic+ Option B (3x) + Option C (1x) Q1

Basic+ Option B (3x) + Option C (2x) Q2

Basic+ Option B (3x) + Option C (3x) Q3

Basic+ Option B (3x) + Option C (4x) Q4

Basic+ Option B (3x) + Option C (5x) Q5

Basic + Option B (3x) + Option A+ Option C (1x) R1

Basic + Option B (3x) + Option A+ Option C (2x) R2

Basic + Option B (3x) + Option A+ Option C (3x) R3

Basic + Option B (3x) + Option A+ Option C (4x) R4

Basic + Option B (3x) + Option A+ Option C (5x) R5

Basic + Option B (4x) S0

Basic + Option B (4x) + Option A T0

Basic + Option B (4x) + Option C (1x) U1

Basic + Option B (4x) + Option C (2x) U2

Basic + Option B (4x) + Option C (3x) U3

Basic + Option B (4x) + Option C (4x) U4

Basic + Option B (4x) + Option C (5x) U5

Basic + Option B(4x) + Option A + Option C (1x) V1

Basic + Option B(4x) + Option A + Option C (2x) V2

Basic + Option B(4x) + Option A + Option C (3x) V3

Basic + Option B(4x) + Option A + Option C (4x) V4

Basic + Option B(4x) + Option A + Option C (5x) V5

Basic + Option B (5x) W0

Basic + Option B (5x) + Option A X0

Basic + Option B (5x) + Option C (1x) Y1

Basic + Option B (5x) + Option C (2x) Y2

Basic + Option B (5x) + Option C (3x) Y3

U.S. Office Of Personnel Management

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Basic + Option B (5x) + Option C (4x) Y4

Basic + Option B (5x) + Option C (5x) Y5

Basic + Option B (5x) + Option A +Option C (1x) Z1

Basic + Option B (5x) + Option A +Option C (2x) Z2

Basic + Option B (5x) + Option A +Option C (3x) Z3

Basic + Option B (5x) + Option A +Option C (4x) Z4

Basic + Option B (5x) + Option A +Option C (5x) Z5

Table of Legislation Affecting FEGLI

Public Act

Resolution

Number

Congress

Date of

Law

Citation

Nature

598

Aug 17,

1954

68 Stat.

736

Original Act

763

Sept. 1,

1954

68 Stat

1116

Stipulates that official

reporters of the proceedings

and debates of the Senate

and their employees shall be

considered employees in the

legislative branch for life

insurance purposes.

356

Aug. 11,

1955

68 Stat

676

Creates the Insurance Fund

and provides for the

investment of moneys in the

Fund, in addition to

providing for the

Commission's assumption of

Beneficial Association

Agreements. This law also

provides for continuation of

insurance during retirement

and nonpay status.

541

May 28,

1956

70 Stat.

213

Provides for continuance of

insurance by employees

receiving benefits under the

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234

Federal employees'

compensation law.

881

Aug. 1,

1956

70 Stat.

882

Provides that insurance

coverage ceases when an

employee enters active

military service.

918

Aug. 2,

1956

70 Stat.

934

Retains life insurance

coverage for certain

Agriculture Department

employees detailed to

States.

935

Aug. 2,

1956

70 Stat.

955

Grants coverage to

employees of Gallaudet

College.

177

Aug. 28,

1957

71 Stat.

452

Retains life insurance

coverage for employees

transferring to International

Atomic Energy Agency.

377

Apr. 11,

1958

72 Stat.

Authorizes payment of

expenses incurred by the

Commission in making

Beneficial Association

Assumption Agreements

and extends the time for

these agreements.

745

Aug. 25,

1958

72 Stat.

838

Provides for each former

President an office staff, and

directs that the staff

members be considered

Federal employees for life

insurance purposes.

795

Aug. 28,

1958

72 Stat.

959

Retains life insurance

coverage for employees

transferring to international

organizations.

U.S. Office Of Personnel Management

235

July 17,

1959

73 Stat.

217

Excludes from life insurance

coverage any Federal

employment performed by

teachers in dependent

schools of the Department of

Defense in overseas areas

in other capacity during a

recess period between two

school years.

377

Sept. 23,

1959

73 Stat.

700

Permits life insurance

coverage to continue for

nondisability retirees after at

least 12 years of service;

reduces amount of

insurance by 2 percent per

month when employee

attains age 65 or retires,

whichever is later.

568

July 1,

1960

74 Stat.

302

Provides life insurance

coverage for Agricultural

Stabilization and

Conservation County

Committee employees.

611

Aug. 28,

1962

76 Stat.

406

Provides that the amount of

insurance payable will

escheat to the credit of the

Fund if claim for payment

has not been filed within four

years after the death of the

employee.

195

Dec. 11,

1963

77 Stat.

348

Provides that persons

employed on the office staff

of Mrs. Jacqueline B.

Kennedy shall be

considered "Federal

employees for life insurance

purposes."

U.S. Office Of Personnel Management

236

531

Aug. 31,

1964

78 Stat.

737

Provides insurance

coverage for certain United

States Commissioners.

631

Oct. 6,

1964

78 Stat.

1007

Provides insurance

coverage for temporary

teachers in the District of

Columbia if they have been

so temporarily employed for

a total time of at least two

years.

Mar. 9,

1965

79 Stat.

Authorizes the Commission

to contract with the

Appalachian Regional

Commission for continuance

of life insurance coverage

held by a Federal employee

transferring to a regional

commission as a regular

employee.

136

Aug. 26,

1965

79 Stat.

567

Authorizes the Commission

to contract with regional

commissions established

under the Public Works and

Economic Development Act

of 1965 for continuance of

life insurance coverage held

by a Federal employee

transferring to a regional

commission as a regular

employee.

373

Mar. 23,

1966

80 Stat.

Specifies that a designation,

change, or cancellation of

beneficiary in a will or other

document not filed with the

Commission is invalid.

379

Mar. 30,

80 Stat.

Preserves life insurance

U.S. Office Of Personnel Management

237

1966

coverage of Congressional

employees receiving certain

Congressional staff

fellowships.

206

Dec. 16,

1967

81 Stat.

646

Provides for $10,000

minimum regular insurance,

increases maximum amount

of regular insurance from

$20,000 to $32,000,

provides for automatic

increases in maximum

amount of insurance

whenever pay assigned to

Federal executive pay level

II increases, creates a new

program of optional

insurance, and improves

financing of insurance costs.

578

Oct. 17,

1968

82 Stat.

1107

Grants insurance coverage

to all full-time and part-time

United States magistrates

and all clerical and

secretarial assistants

employed in the office of full-

time magistrates.

418

Sept. 25,

1970

84 Stat.

869

Extends insurance coverage

to noncitizen employees

whose duty station is in the

Panama Canal Zone.

529

Oct. 21,

1972

86 Stat.

1050

Authorizes the waiver of

retroactive salary deductions

for Federal Employees'

Group Life Insurance

purposes upon an

employee's restoration to

duty following a finding of

erroneous removal or

U.S. Office Of Personnel Management

238

suspension.

437

Oct. 10,

1978

92 Stat.

1055

Provides that all employees

appointed under the

provisions of this Act are

eligible under the FEGLI

Program.

454

Oct. 13,

1978

92 Stat.

1111

Amends the FEGLI law by

striking out "Commission"

each place it appears and

inserting in lieu thereof

"Office". In addition, various

technical amendments to

Section 8716 and the

Federal Employees Part-

Time Career Act of 1978

(Pub. L. 95-437) are

effected.

583

Nov. 2,

1978

92 Stat.

2481

Reduces from 12 years to 5

years the length of service

requirement for retaining

group life insurance

coverage into retirement. In

addition, provides that for an

employee who becomes

eligible to continue optional

and/or regular life insurance

while receiving

compensation for a work

injury on or after November

2, 1978, the amount of the

compensationer's insurance

will be subject to the same 2

percent monthly reduction

as is applied to all other

insured persons when they

attain age 65 and are

retired.

U.S. Office Of Personnel Management

239

Aug. 14,

1979

93 Stat.

384

Redefines "employee" for

the purpose of life insurance

coverage to exclude the

previous reference to a

United States

Commissioner.

330

Aug. 26,

1980

94 Stat.

1035

Provides that bonuses be

included as annual pay for

FEGLI for physicians and

dentists of the Department

of Veterans Affairs.

427

Oct. 10,

1980

94 Stat.

1831

Restructures the "regular

insurance" and renames it

"basic insurance" renames

"optional insurance" as

"standard optional

insurance" and creates the

"additional optional" and

"family optional" insurance.

Also provides an age

multiplication factor to permit

additional amounts of "basic

insurance" for younger

employees, permits

employees who retire on or

after December 9, 1980, to

elect a lesser reduction in

the "basic insurance" after

attaining age 65 and

requires employees retiring

after 1989 to continue to pay

premiums for basic coverage

until they attain age 65. In

addition, this law provides

that agencies may waive

retroactive collection of

premiums under certain

circumstances so long as

U.S. Office Of Personnel Management

240

the agency remits the

amount due to the Fund.

This law also repeals the

requirement of maintaining

an advisory committee for

life insurance, and provides

for preemption of conflicting

state and local group

insurance laws.

499

Dec. 5,

1980

94 Stat.

2606

Exempts the premiums

received by the office of

Federal Employees' Group

Life Insurance under the

FEGLI Program from state

and local premium taxes.

164

April 2,

1982

96 Stat.

Amends the FEGLI law by

striking out "Court of Claims"

and inserts in lieu thereof

"United States Claims

Court."

353

July 10,

1984

98 Stat.

350

Allows certain Federal

judges to continue their

FEGLI coverage as active

employees after they retire,

and to make an irrevocable

assignment of their FEGLI

coverage to another person.

621

Nov. 8,

1984

98 Stat.

3379

Allows FEGLI coverage for

employees of St. Elizabeths

Hospital who went to work

for the District of Columbia

Government immediately

following Federal

employment, without any

break in service.

June 17,

99 Stat.

Allows an annuitant whose

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241

1985

disability is terminated

because of restoration to

earning capacity or recovery

from disability and whose

disability annuity is restored

to elect to resume FEGLI

coverage held immediately

before his or her disability

annuity is terminated.

335

June 6,

1986

100 Stat.

597

Ends the availability of

FEGLI coverage for the

employees of the

government of the District of

Columbia, beginning with

individuals first employed

with the District on or after

October 1, 1987. Allows an

employee who enters the

military on active duty or

active duty training to

continue FEGLI coverage for

up to 12 months. Provides

for reinstatement of FEGLI

coverage for individuals who

qualify for an immediate

annuity when they leave

Federal service but

postpone the commencing

date of the annuity. Allows

FERS annuitants to make

direct payment of premiums

for their FEGLI coverage

when their annuity is too low

to cover the insurance

premiums.

336

June 19,

1986

100 Stat.

639

Clarifies Public Law 98-353

by providing that certain

Federal judges who retire on

U.S. Office Of Personnel Management

242

or after January 1, 1982,

may continue their basic and

optional FEGLI coverage as

if they were still in active

employment.

238

100

June 8,

1988

100 Stat.

1744

Authorizes OPM to convert

the premium pay of law

enforcement officers under

FERS to annual pay.

Specifies that any provision

of law outside of the FEGLI

law which confers eligibility

for FEGLI coverage shall not

apply to individuals

commencing employment in

these positions on or after

October 1, 1988.

679

100

Nov. 7,

1988

102 Stat.

4071

Provides FEGLI coverage to

certain individuals appointed

to the staff of a former

President or a former Vice

President under the

Presidential Transition Act of

1963.

303

101

May 29,

1990

104 Stat.

250

Authorizes the payment of

the Government contribution

for Basic life insurance

coverage for individuals

under age 65 who retire, or

commence receiving

compensation, after

December 31, 1989.

508

101

Nov. 5,

1990

104 Stat.

1388

[855]

Allows certain employees

who retire under a

Nonappropriated Fund

instrumentality retirement

plan to retain FEGLI

U.S. Office Of Personnel Management

243

coverage as annuitants.

509

101

Nov. 5,

1990

104 Stat.

1432

Provides that interim

geographic adjustments and

locality-based comparability

payments be included in

annual pay for FEGLI.

513

101

Nov. 5,

1990

104 Stat.

2064

Extends coverage under the

FEGLI Program to U.S.

hostages in Iraq, Kuwait,

and Lebanon while they are

in hostage status and for 12

months thereafter.

103

Aug. 10,

1993

107 Stat.

312

Provides that premium pay

for overtime inspectional

service be included as

annual pay for FEGLI for

customs officers.

336

103

Oct. 3,

1994

108 Stat.

2661

Allows all insured individuals

to make an irrevocable

assignment of their Basic,

Option A, and Option B

coverage to an individual,

corporation, or trustee.

409

103

Oct. 25,

1994

108 Stat.

4230

Allows insured employees

and annuitants to elect to

receive their Basic insurance

as a living benefit if they are

terminally ill with a life

expectancy of 9 months or

less.

134

104

Apr. 26,

1996

110 Stat.

1321

Allows certain employees of

the District of Columbia

Financial Control Authority

to elect to be considered

Federal employees for

purposes of FEGLI.

U.S. Office Of Personnel Management

244

105

Aug. 5,

1997

11 Stat.

251

Allows judicial and

nonjudicial employees of the

District of Columbia Courts;

the District of Columbia

Corrections Trustee; the

District of Columbia Pretrial

Services, Defense Services,

Parole, Adult Probation, and

Offender Supervision

Trustee; and employees of

these trustees to be

considered Federal

employees for purposes of

FEGLI.

205

105

Jul. 22,

1998

112 Stat.

683

Provides that certain court

orders supersede the order

of precedence for the

payment of life insurance

benefits.

274

105

Oct. 21,

1998

112 Stat.

2419

Makes technical corrections

to Pub. L. 105-33, extends

FEGLI to employees of the

Public Defender Service of

the District of Columbia, and

allows certain former DC

Government employees who

work for the Federal

Government to continue

their DC Government

insurance.

311

105

Oct. 30,

1998

112 Stat.

2950

Eliminates the maximums on

Basic and Option B; allows

coverage of foster children

under Option C; makes

erroneous coverage valid, if

it has been in effect for at

least 2 years and the

U.S. Office Of Personnel Management

245

individual has paid the

applicable premiums; allows

direct payment of premiums

for any employee, annuitant,

or compensationer whose

pay is too small to make

withholdings; allows retiring

employees to elect

unreduced Options B and C;

allows certain employees

whose coverage terminates

to port Option B (3-year

demonstration project); and

increases Option C

coverage to 1-5 multiples of

the current amounts.

113

106

Nov. 29,

1999

113 Stat.

1501

Amends title 28 to require

the Judiciary to pay on

behalf of Justices and

judges of the United States

any increases in FEGLI

premiums imposed after

April 24, 1999.

398

106

Oct. 30,

2000

114 Stat.

1654

Allows Department of

Defense employees who

waived or cancelled Basic

insurance to elect it within

60 days of being designated

emergency essential under

section 1580 of title 10

U.S.C.

522

106

Nov. 22,

2000

114 Stat.

2440

Allows the Court Services

and Offender Supervision

Trustee and the trustee's

employees to be treated as

Federal employees for the

purpose of FEGLI.

U.S. Office Of Personnel Management

246

181

110

Jan. 28,

2008

Allows Federal civilian

military reservists called up

to active duty to elect FEGLI

coverage for an additional

12 months (24 total) while in

civilian nonpay status

246

110

Jun.

18,

2008

122 Stat.

1651

Authorizes the offset of

nontax payments to collect

delinquent Federal debt

without regard to the amount

of time the debt has been

delinquent.

417

110

Oct. 14,

2008

Allows new election

opportunity for certain

civilian employees

supporting military

contingency operations

under section 101(a) (13),

title 10 and DoD employees

deemed ”emergency

essential” under section

1580, title 10.

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