The U.S. Office of Personnel Management (OPM) has announced select Federal Employees’ Group Life Insurance Program (FEGLI) premium rate changes starting January 1, 2016. Additionally, OPM will be holding a FEGLI Open Season from September 1-30, 2016.
Authorized by law, FEGLI is a life insurance program for federal and postal employees and retirees. OPM is charged with administering the program and setting premiums, and contracts with Metropolitan Life Insurance Company (Metlife) to provide the insurance coverage. In Fiscal Year 2013, over 75,000 death and dismemberment claims were paid, totaling $2.7 billion in benefit payments.
Effective January 1, 2016, FEGLI premium rates will change for certain types of coverage in certain age bands. Please note, there will be no change in premium rates for Basic Insurance for current employees. There will be premium decreases for coverage levels for many age bands under Coverage Options A, B, and C. However, there will be premium increases under Option B for those in the 80 plus age band, and for individuals in any of the age bands above 70 under Option C. Some participant premium rates will stay the same under Options A, B and C. For retirees, premium rates will also register a mix of holding steady, increasing and decreasing, but there will be an increase in premium rates for individuals who have selected Post-Retirement Basic Insurance with a 50% Reduction and No Reduction.
For information on the overall FEGLI program, please visit: https://www.opm.gov/healthcare-insurance/life-insurance/reference-materials/handbook.pdf
Additionally, OPM has announced a FEGLI Open Season that is to be held September 1-30, 2016. During the month of September 2016, federal employees will be able to enroll in FEGLI (including those who previously turned it down) without a Qualifying Live Event or taking a physical exam, and to increase overall insurance coverage levels. Unlike the annual health insurance (FEHBP) and Flexible Spending Account (FSA) Open Season, FEGLI Open Seasons are rare, with the last one occurring in 2004. Any coverage changes made under the September 2016 FEGLI Open Season will take effect October 1, 2017, as stipulated under existing law and regulations.
NTEU will continue to keep you updated on FEGLI, and on all other benefit program changes.