The Office of Personnel Management (OPM) last week announced it has updated the handbook for the Federal Employees’ Group Life Insurance program (FEGLI).
According to OPM, some of the FEGLI handbook updates include:
- Eligibility of Federal judges of the United States Court of Appeals for Veterans Claims
- Eligibility for married couples to include same-sex spouses
- Updates on premium rate decreases for Optional insurance and the full list of FEGLI premium rates effective January 1, 2016, may be found in the Handbook section entitled, “Cost of Insurance.” In the section, “Post 65 Reductions in the Amount of Insurance,” premiums for post-age 65 reductions in the amount of Basic and Optional coverage are clarified as are premium cease dates for enrolled individuals.
- Updates on eligibility for individuals electing to transition to phased retirement and for employees returning to full employment after electing phased retirement are included in the section dedicated to phased retirement.
- The “Table of Legislation Affecting FEGLI” has been updated to reflect the changes found throughout the Handbook.
Most employees are eligible for FEGLI coverage. FEGLI provides group term life insurance. As such, it does not build up any cash value or paid-up value.
It consists of Basic life insurance coverage and three options. In most cases, if you are a new federal employee, you are automatically covered by Basic life insurance and your payroll office deducts premiums from your paycheck unless you waive the coverage.
In addition to the Basic, there are three forms of Optional insurance you can elect. You must have Basic insurance in order to elect any of the options. Unlike Basic, enrollment in Optional insurance is not automatic — you must take action to elect the options.
The cost of Basic insurance is shared between you and the government. You pay 2/3 of the total cost and the government pays 1/3. Your age does not affect the cost of Basic insurance. You pay the full cost of Optional insurance, and the cost depends on your age.
To review the updated FEGLI handbook, download it here (207-page PDF. OPM does not provide paper copies of this guide.).