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Federal Employees Health Benefits Program Premium Conversion
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FEHB Premium Conversion HR Personnel Page

Table of Permissible Changes for Employees Electing Premium Conversion

Benefits Administration Letter 03-207 of June 10, 2003, provides agencies with the Table of Permissible Changes in FEHB Enrollment and Premium Conversion Election for Federal employees receiving premium conversion tax benefits. We are currently in the process of revising Standard Form (SF) 2809, Employee Health Benefits Election Form, to include this table. Agencies may begin to use this table for enrollments and changes for all employees who participate in premium conversion.
Added June 23, 2003

Premium Conversion Annual Reporting Requirement Discontinued

Benefits Administration Letter 02-301 of January 4, 2002, announced a new annual reporting requirement as required by the Internal Revenue Service for cafeteria plans under Section 125 of the Internal Revenue Code of 1986. On April 22 the IRS announced the discontinuation of the requirement to submit this report. A new Benefits Administration Letter announces the elimination of this reporting requirement.
Added April 30, 2002

Annual Report on Agency Premium Conversion Usage

Benefits Administration Letter 02-301 informs agency payroll offices of a new reporting requirement. Executive Branch agencies participating in FEHB Premium Conversion must submit a report to us by June 1, 2002, for our use in providing a report to the Internal Revenue Service. Other than Executive Branch agencies must file their report directly with IRS.

Correction of Administrative Errors — Clarification

Our policy has been that the correction of administrative errors involving Health Benefits Premium Conversion (HB-PC) cannot include retroactive adjustments to taxable income. Benefits Administration Letter 00-318 of May 18, 2001, revises that policy by requiring retroactive adjustments to taxable income in the event of certain administrative errors related to Premium Conversion. BAL 01-320 of June 29, 2001, provides clarification of one aspect of this new policy.

Transfers of Enrollment Between OPM and the Agencies

Benefits Administration Letter 00-315 of April 26, 2001, provides Federal agencies with information on enrollment transfers between agencies and OPM for Premium Conversion purposes.

Correction of Administrative Errors

Benefits Administration Letter 00-313 of March 30, 2001, provides information on the impact on tax withholdings and probable corrective actions for four types of errors in participant FEHB deductions:

  • An election to cancel FEHB enrollment that is not processed.
  • An election to enroll in the FEHB enrollment that is not processed.
  • An employee is incorrectly enrolled in a more-expensive plan.
  • An employee is incorrectly enrolled in a less-expensive plan.

Impact on Tax Withholdings of Incorrect FEHB Deductions

Benefits Administration Letter 00-313 of March 30, 2001, provides Federal agencies with information about the impact on tax withholdings of incorrect FEHB deductions, when the affected employee is a participant in Health Benefits Premium Conversion

Detailed Implementing Instructions

Benefits Administration Letter 00-215 of August 24, 2000, provides Federal agencies with detailed instructions on the implementation of Premium Conversion.

Required in order to qualify the FEHB program as a "cafeteria plan" under Section 125 of the Internal Revenue Code of 1986

The Regulations

5 CFR Part 550, Pretax Allotments for Health Insurance Premiums (July 19, 2000): [PDF File]   [Text File]

5 CFR Parts 890 and 892, Health Insurance Premium Conversion (July 19, 2000): [PDF File]   [Text File]

Page updated June 26, 2003