All participants in premium conversion must have their FEHB premiums deducted from their pay as employees,� not from their retirement annuities. In order to allow eligible reemployed annuitants an opportunity to participate in premium conversion, their FEHB enrollment must be transferred from their retirement system to their employing agency.

Under CSRS/FERS, your employing office must transfer-in your FEHB enrollment as of your effective date of participation in premium conversion. Procedures and guidelines pertaining to the transfer of the FEHB enrollment of reemployed annuitants who participate in premium conversion are outlined in Payroll Office Letter P-00-13, FEHB Premium Conversion.  

Prior to Premium Conversion, the employer share of the FEHB premium for reemployed annuitants under CSRS/FERS was paid from an OPM appropriation.� Effective with Premium Conversion, your employing office must contribute the employer share of the FEHB premium for all reemployed annuitants that are enrolled in the FEHB as employees.� The employer contribution for reemployed annuitants will be remitted to OPM in the same manner as that for other employees.

Your participation in premium conversion ends on the last day of the last pay period as an employee.� When you separate from active service, your FEHB enrollment must be transferred back from your employing agency to OPM or the appropriate retirement system.

There are a number of factors for you to consider if you are employed part-time.� Although you will not be eligible for the full government contribution, your entire employee contribution will be pre-tax if you participate in premium conversion.� That larger reduction in taxable income might offset the lower government contribution. If you are a part-time reemployed annuitant, we suggest that you consult your agency or a qualified tax advisor to review your individual situation.