Annuitants and Compensationers
ELIGIBILITY FOR LIFE INSURANCE
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;
- 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); 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 policy, contact the insurance company. That company will send you a refund of any premiums you have already paid for the conversion policy.)
- You are enrolled in FEGLI on the date of retirement.
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.
Example 1
Aaron elected Basic insurance when he first became employed on 2/7/83. He resigned 9/22/00, and returned to Federal service 8/24/02. When he returned to service, he did not make a new election and got back the same coverage he had before he separated. He retired 12/31/05. The break in service didn't count against Aaron in determining his eligibility to continue FEGLI. The 5 years of service needed to continue FEGLI in Aaron's case are 8/24/02-12/31/05 and 1/30/99-9/22/00. 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 2004. When she returned to service, she elected Basic insurance her very first day. She retired 11/30/05. Amy did not meet the 5-year requirement for continuing her FEGLI coverage (she waived it back 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 2006 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.
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). 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.)
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 2004 Beatrice was hurt in an accident at work and began receiving compensation; she separated from service 11/12/04 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 1999 open season he elected Basic insurance; the coverage was effective 4/23/00. In September 2004 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. At the end of the year in nonpay status, since he did not meet the 5-year/all-opportunity requirement, Conrad's FEGLI terminated.
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 1993 open season and 5 multiples of Option B during the 2004 open season. Her 5-multiple Option B coverage became effective 9/4/05. She retired 12/31/05. 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
Damien elected Basic insurance and Option C when he first became employed in 1981; he elected 4 more multiples of Option C during the 1999 open season. The new Option C coverage became effective 4/23/00. He retired 10/03/03. Damien met the 5-year requirement for his Basic insurance and for his original Option C multiple. Because the 1999 open season was the first time multiples 2-5 of Option C became available, Damien met the all-opportunity requirement for those multiples. Therefore Damien was eligible to continue Basic insurance and all 5 multiples of Option C into retirement.
Example 3
Daisy was married and elected Basic insurance only when she became employed in 1974. She never made another FEGLI election until the 1999 open season, when she elected 5 multiples of Option C. Her new coverage became effective 4/23/00. She retired 6/30/04. Daisy met the 5-year requirement for her Basic insurance. Although the 1999 open season was the first time multiples 2-5 became available for Option C, the original Option C coverage (the first multiple) became available in 1981. Since Daisy didn't meet either the 5-year or the all-opportunity requirement for her first multiple of Option C, she was not eligible to continue any Option C into retirement.
Example 4
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 10/16/04 and elected 1 multiple of Option B and 5 multiples of Option C. He retired 11/03/05. Ed met the 5-year requirement for Basic insurance. Since he never had any eligible family members until his 2004 wedding, 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 health benefits 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
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 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.
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 the old form SF 49.) and preparing a letter/memo with the name of the deceased and the date of death. Your retirement system must fax or sent this information to OPM, attention Retirement Operations Center. 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 whoever 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 2627, Jersey City, NJ 07303-2627.
AMOUNT OF LIFE 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 on the date of your separation or 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.
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
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). 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 after age 65 (or retirement, if that's 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); 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 "Amount of Withholding for Annuitants and Compensationers" for how your election affects your premiums.
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
The amount of Basic life insurance in force reduces by 2 percent of the BIA each month until the amount has been reduced by 75 percent; 25 percent of the BIA is payable as a death benefit once the full reduction has been reached.
Example
Emma retired with a BIA of $57,000 and 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). The reduction will continue until $14,250 of her BIA remains. This is the amount that will be payable if Emma dies after the full reduction has been reached.
50 Percent Reduction
The amount of Basic life insurance in force reduces by 1 percent of the BIA each month until the amount has been reduced by 50 percent; 50 percent of the BIA is payable as a death benefit once the full reduction has been reached.
Example
Floyd retired with a BIA of $62,000 and 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). 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
The amount of Basic life insurance in force does not reduce. The full BIA is payable as a death benefit.
When the Reduction Starts
The reduction starts at the beginning of the 2nd month after your 65th birthday or the beginning of the 2nd month after your retirement, whichever is later.
Example 1
Faye retired in 2000 with a BIA of $60,000. She elected 75 Percent Reduction and turns 65 on 3/15/06. The amount of Faye's Basic insurance in force will reduce by $1,200 each month ($60,000 x 2 percent), starting with her 5/1/06 annuity payment.
Example 2
George retired 10/3/06 at age 67 with a BIA of $64,000; he elected 50 Percent Reduction. The amount of George's Basic insurance in force will reduce by $640 each month ($64,000 x 1 percent) starting with his 12/1/06 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 |
No |
No |
| 50 Percent Reduction |
Yes |
Not applicable |
No |
| No Reduction |
Yes (unless you elected a partial living benefit) |
No |
Not applicable |
If you elect 75 Percent Reduction, you cannot change the election.
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 cancel your 50 Percent Reduction election or No Reduction election, the amount of your Basic insurance remaining switches automatically to the amount that would be in effect if you had elected 75 Percent Reduction originally. You do not get a refund of the additional premiums you paid for the higher level of coverage.
If you elect 50 Percent Reduction, you cannot change the election to No Reduction.
Contact OPM's Retirement Operations Center at P.O. Box 45, Boyers, PA 16017-0045 or 1-888-US-OPM-RET (1-888-767-6738) if you wish to change your election.
See "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.
POST-65 REDUCTION IN THE AMOUNT OF COVERAGE - OPTIONAL INSURANCE
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 of your Option B and C multiples 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).
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). 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 want to.
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 50th 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.
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.
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 2nd month after your 65th birthday or the beginning of the 2nd 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). Your employing office will include the completed SF 2818 with the retirement package when it submits the package to OPM.
In this initial election you cannot choose to have some multiples reduce and some not reduce within the same type of coverage. For example, if you have 5 multiples of Option B, you cannot choose to have 3 multiples reduce and 2 not reduce. You must make the same election - either Full Reduction or No Reduction - for all the multiples of Option B.
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 will be able to choose to have some multiples of particular type of coverage reduce and others not reduce.
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:
OPTION B
| Can change from |
You |
Your assignee |
| Full Reduction to No Reduction-if you are under age 65 |
Yes |
No |
| Full Reduction to No Reduction-if you are age 65 or older |
No |
No |
| 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 |
No |
| Full Reduction to No Reduction-if you are age 65 or older |
No |
No |
| No Reduction to Full Reduction-if you are under age 65 |
Yes |
No |
| No Reduction to Full Reduction-if you are age 65 or older |
Yes |
No |
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 from Full Reduction to No Reduction at any time.
Note: Before you reach age 65, any change you make for a particular type of insurance must apply to all the multiples of that insurance.
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 2006 Heidi decides she wants to change 2 of her Option C multiples to No Reduction. At this time she cannot make that change. She can either change all of her Option C multiples to No Reduction or leave them all at Full Reduction.
After you reach age 65, you may change from No Reduction to Full Reduction at any time. You may at this time choose to 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 2001 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 2006. In August 2006 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 9/1/06. 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 5th 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 180 days or more after the cancellation, you can only get the coverage back by one of the methods discussed in "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 65th birthday). The reductions don't start (and premiums don't stop) until the 2nd month after you reach age 65. 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 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
SF 2818 (Continuation of Life Insurance Coverage)
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).
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 to avoid the automatic reduction in the amount of coverage after age 65 or to convert coverage to whole life or another type of insurance that provides a paid-up value you can borrow against.
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 sent the notice to.
If you have assigned your insurance, your employing office must give the SF 2819 to your assignee(s), rather than to you. 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.
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 2627, Jersey City, NJ 07303-2627.
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 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 2 certifications: One by the personnel office and 1 by the payroll office.
If You Wish to Continue Your Insurance
You must complete the SF 2818 (Continuation of Life Insurance Coverage), 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.
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 retire@opm.gov.
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 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 2627, Jersey City, NJ 07303-2627.
If You Are Not Eligible to Continue Life Insurance
If it appears you are not eligible to continue any of your life insurance into retirement, 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 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 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 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.
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 (Individual Retirement Record), it will submit 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, rather than with the application for retirement.
Your employing office should note your insurance status in the "Remarks" section of the preliminary SF 2806 (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 you die while your retirement claim is pending, a later determination that you were entitled to an immediate annuity establishes 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
If your insurance terminates while your retirement claim is pending, your employing office must notify you of the conversion privilege.
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.
REEMPLOYED ANNUITANTS
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 coverage, the Basic insurance you carried as an annuitant is suspended.
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.
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 handled 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 31 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. 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 31 days after reemployment. You must sign for all the insurance you want, not just Option B; any coverage not signed for will be cancelled. 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 don't 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.
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."
If you retired under the System for Police and Firemen of the District of Columbia, the appropriate office to notify is the Retirement Division, Office of Pay and Retirement, Room 200, 410 E Street, NW, Washington, DC 20001.
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.
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).
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 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.
If You Die During Reemployment
Basic Insurance
The amount of benefits payable will be either the amount suspended as an annuitant, 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.
Option A
The amount of benefits payable will be the amount carried during reemployment.
Option B
The amount of benefits payable will be whichever coverage you elected to have - either the amount carried as an annuitant 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, not to OFEGLI.
You must send claims for accidental dismemberment directly to the OFEGLI at P.O. Box 2627, Jersey City, NJ 07303-2627.
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 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.
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 1998 with Basic insurance only. She became reemployed in 2001 and elected 2 multiples of Option B. She retired again in 2004. She was eligible to continue her employment-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 1999 open season. That coverage became effective 4/23/00. Jeff retired in 8/3/03. 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 2004 and got back the Option B coverage that had terminated when he retired in 2003. He worked another 2 years. When Jeff retired the 2nd time, he was eligible to continue his Option B, because he now met the 5-year requirement (4/23/00-8/3/03 plus 3/04-3/06).
Example 3
Jill retired in 1998 with Basic insurance and Option C. She became reemployed in 2001 and elected 4 more multiples of Option C. She worked 1 year and retired with a supplemental annuity. When Jill left service, she was eligible to continue all 5 multiples of Option C. At the time she retired in 1998 Option C didn't have multiples. She met the 5-year requirement and continued her original Option C into retirement. When she became reemployed and elected multiples 2-5, she had it for the entire time it was available to her; so she met the all-opportunity 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 2 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).
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.
Option B
If you kept Option B as an annuitant, 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.
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
When you start receiving compensation, you remain insured as an employee until 1 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 on an every-4-weeks basis.
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.
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). 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." 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.
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 |
|
You are therefore 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 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 send 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
Your employing agency should follow the same procedures as for an eligible employee. 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 (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. 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 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 or reinstate any coverage that 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. 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 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.
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 1-88-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 2627, Jersey City, NJ 07303-2627. Claimants should not send the claim form to OPM.
TERMINATION AND REINSTATEMENT
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 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.
If you meet these requirements, you can get back any FEGLI coverage you had immediately before your annuity was terminated.
Termination - Compensationers
Your life insurance terminates when compensation stops or when the Office of Workers' Compensation Programs 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 insurance as a compensationer stops and you become insured as an employee. If you do not return to Federal service, your life insurance continues as a compensationer.
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 again.
HISTORICAL INFORMATION
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 face value was gone. There was no 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. Starting in 1999, retiring employees were able to choose between Full Reduction and No Reduction.
Retirement or Receipt of Compensation before April 24, 1999
If you were retired or insured as a compensationer before April 24, 1999, and you had Option B coverage, you were given an opportunity between April 24 - October 24, 1999, to choose Full Reduction or No Reduction for your Option B coverage.
If your Option B had already started reducing, you were given the opportunity to freeze your Option B coverage at the amount in force as of April 24, 1999. If you made this election, you began to have premiums withheld again from your annuity appropriate to your age and the amount you chose to freeze.
There was no election opportunity regarding Option C.
U.S. Office of Personnel Management 1900 E Street NW, Washington, DC 20415 | (202) 606-1800 | TTY (202) 606-2532