Do my premiums change now that I’m retired?
If you are eligible, and choose to continue your insurance as an annuitant or compensationer, you must complete a Continuation of Life Insurance Coverage form (SF 2818). On this form, you elect if you want to continue your Basic life insurance into retirement or compensation and elect the amount of Basic insurance you want after age 65 (or retirement, if later). The choices are 75% Reduction, 50% Reduction, or No Reduction.
For annuitants, the Office of Personnel Management pays the Government contribution, and the retirement system makes withholdings from your annuity.
Cost for Annuitants for each $1,000 of the Basic Insurance Amount in Effect at the Time of your Retirement
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75% Reduction
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50% Reduction
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No Reduction
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Until the Month after your 65th Birthday
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$0.3250 monthly
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$0.9250 monthly
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$2.1550 monthly
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Starting the Month after your 65th Birthday
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Free
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$0.60 monthly*
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$1.83 monthly*
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* This amount will be withheld from your annuity for life (unless you cancel or subsequently elect 75% Reduction).
If you have Optional insurance and are eligible to continue it, you must choose how you would like to continue it in retirement (if you choose to keep Option A, it automatically reduces when you reach age 65 [or retire, if later]. There is no reduction election for Option A). For Options B and C, you can choose whether to have all or some of the multiples reduce or not reduce.
You pay 100% of the cost of Optional insurance. The premiums for the three Optional insurance coverages are based on your age and the number of Option B and/or Option C multiples (up to five) you elect. They may increase as you get older. Refer to our Handbook for more information on the pricing of the three Optional insurances.