For retirees and annuitants, the Office of Personnel Management pays the government contribution, and the retirement system makes withholdings from your annuity.

Exception: If you retired or started receiving compensation before January 1, 1990, and elected 75% Reduction, Basic insurance is free.

Withholdings for FEGLI Basic Insurance

The premiums shown in the following chart may change in the future. You will receive notice before any premiums change.

Cost for Annuitants for each $1,000 of the Basic Insurance Amount in Effect at the Time of your Retirement

* This amount will be withheld from your annuity for life (unless you cancel or subsequently elect 75% Reduction).

Cost of Optional Insurance for Retirees and Annuitants

The cost of optional insurance for an annuitant is the same as that for an employee, adjusted to a monthly or weekly basis. The cost continues to increase based on your age, even after you retire.

For Option A and when you choose Full Reduction for Option B or Option C, withholdings stop the month after your 65th birthday, and the coverage is free.

Basis for Withholdings

Withholdings are based on the amount of insurance in force at the time of your retirement. The withholdings do not change when the amount of insurance in force begins to reduce.

Example:  Linda chose 50% Reduction for her Basic insurance upon her retirement. Her Basic Insurance Amount is $66,000 and her 65th birthday is 02-21-03. She will pay $61.05 ($0.9250 x 66) monthly for this coverage through February 2003. Beginning March 2003, she will pay $39.60 ($0.60 x 66) monthly. (It will be shown in her April annuity payment, which is for the month of March.) Starting on April 1, 2003, her coverage will reduce by 1% of the Basic Insurance Amount per month ($660) and will continue to reduce by $660 per month until the coverage amount equals $33,000. She will continue to pay premiums monthly for the rest of her life.

Insufficient Annuity

If your annuity is insufficient to pay your life insurance premiums, you may pay your premiums directly to OPM to continue your coverage.