Employee Group Life Insurance (FEGLI)
FEGLI is a life insurance
group plan administered by the Office of Personnel Management
(OPM). The Office of Federal Employees' Group Life Insurance (OFEGLI)
has been established to process and pay claims and perform other
administrative functions needed to run the program. Participation
is entirely voluntary. However, eligible employees are automatically
covered for Basic Life unless they waive this coverage. The decision
to waive or elect life insurance should be based on the employee's
evaluation of his\her personal needs (including long and short
term plans), family situation, and existing life insurance coverage.
For detailed information,
please visit OPM's web site at http://www.opm.gov/insure/life/ or
contact a member of the Retirement and Benefits Staff at (301)
All full-time and part-time
employees on an appointment of more than one year are eligible
New employees are automatically
covered for Basic Life Insurance unless they complete an SF-2817,
Life Insurance Election Form, to WAIVE enrollment. Employees have
31 days from their entrance on duty (EOD) or 31 days from the
effective date of their conversion to a multi-year appointment
to enroll for additional coverage.
New Employees - Basic life insurance coverage is effective
on the first day the employee enters a pay and duty status unless
he/she waives coverage before the end of the first pay period.
Optional coverage for new employees is effective the first day
the employee is in a pay and duty status after the day the election
form is received in the employing office.
Break in Service - An employee returning to work after
a break in service of less than 180 days will automatically be
covered under the life insurance they had before leaving Government,
if any, and do not get an opportunity to make a new election to
increase coverage. An employee may cancel or decrease coverage
at any time. The Exception is if there was a qualifying
change in family status (e.g., marriage, divorce, death of spouse,
or acquiring an eligible child) during the separation from covered
service or during the 60-day period immediately before separation.
The employee will have 31 days from the date of reinstatement
or 60 days from the date of the event, whichever gives more time
to elect or add additional coverage.
When the employee returns to work after a break in service of
180 days or more, any previous waiver of insurance is automatically
cancelled. Unless a new waiver is filed, Basic insurance becomes
effective on the first day of entry on duty in a pay status in
a position in which eligibility for coverage is met. An employee
may elect any amount of Optional insurance within 31 days of reemployment,
regardless of the coverage held previously. If failure to elect
Optional insurance occurs, the Optional insurance carried (if
any) immediately prior to the break in service will be reinstated.
For Current employees - Changes in enrollments are effective
the beginning of the next pay period after the form is received
in the employing office. Cancellations are effective the end of
the pay period in which the enrollment form is received.
The different coverage
options available under the FEGLI program are outlined below:
- Amount equal to the employee's annual salary rounded up to the
next $1,000, plus $2,000.
Option A - Standard $10,000 Coverage for Employee
Option B - 1, 2, 3, 4, or 5 multiples of annual salary
(after salary has been rounded to the next higher thousand, if
not already an even thousand). It does not include the extra $2,000
added for Basic Insurance.
Option C - Coverage for eligible family members. The employee
may elect Option C - Family Life Insurance to provide coverage
for their spouse and eligible children. When an employee elects
Option C, all of his/her eligible family members are automatically
covered. Multiples of 1, 2, 3, 4, or 5 of coverage are available.
Each multiple is equal to $5,000 for their spouse and $2,500 for
each eligible dependent child.
Example: If 3 multiples
If the spouse
dies, the employee will receive $15,000 (3 multiples of $5,000).
If one of the eligible dependent children dies, the employee will
receive $7,500 (3 multiples of $2,500).
Each multiple is a unit.
For example, if two multiples are elected, that means there are
two multiples on the spouse and two multiples on each dependent
child. An employee cannot elect a number of multiples for the
spouse that is different from the number of multiples for each
Eligible dependent children must be unmarried and under age 22,
or if age 22 or over, incapable of self-support because of a mental
or physical disability that existed before the child reached age
22. Eligible dependent children include natural children, adopted
children, stepchildren (if they live with the employee in a regular
parent-child relationship), recognized natural children, and foster
children (if they live with the employee in a regular parent-child
relationship). Stillborn children are not covered.
Request for Life Insurance
Evidence of insurability
changes based on approval after a physical examination are effective
is effective the first day the employee is in a pay and duty status
after the approval from OFEGLI is received in the employing office.
Option A and/or B is effective the first day the employee is in
a pay and duty status after the SF-2817
is received by the employing office. The SF-2817 must be received
in the employing office within 31 days from the date the request
was approved by OFEGLI.
You cannot elect Option C or increase your Option C Multiples
by getting a physical exam after an initial waiver of this option.
You may only elect a change to Option C based on a life event
such as marriage, divorce, death of a spouse, or acquiring an
Accidental Death &
Accidental Death &
Dismemberment benefits are a feature of Basic Life and Option
A that doubles the amount of these coverages at no additional
cost to the employee.
Basic Life Extra Benefit
This benefit doubles
the amount of Basic Life insurance payable if the employee's age
is 35 years or younger. Beginning on his/her 36th birthday, the
extra benefit decreases 10% each year until, at age 45, there
is no extra benefit. This is an automatic benefit for which there
is no additional cost.
Changes in Enrollment
The amount of Basic
Life insurance will change automatically when the employee's annual
basic pay changes to a higher or lower multiple of $1,000. The
new amount of insurance will be effective on the date the pay
change occurs. Employees may decrease the level of coverage or
cancel coverage at any time. If the employee voluntarily cancels
his/her Basic Life insurance, Optional insurance is automatically
cancelled. An employee may cancel any of the Optional insurance
without affecting the Basic Life or other Optional insurance.
A cancellation is effective at the end of the pay period in which
a properly submitted SF-2817 is received in the employing office.
Changes due to a change in marital status and/or addition of a
child are permissible for Options B and C within 60 days of the
If at least one year has passed since an employee's waiver of
FEGLI coverage, the employee may complete SF-2822, Request for
Insurance, have a physical examination at his/her own expense,
and submit the information to OFEGLI. If the request for insurance
is approved by OFEGLI and the employee had previously waived all
coverage, Basic Coverage will be effective on the date the approved
SF-2822 is received by the employing office. The employee then
has 31 days from the date OFEGLI approved the request to elect
coverage under Option A and/or B by completing an SF-2817, FEGLI
Election form, and submitting the form to the personnel office
within the 31-day time limit. The employee may not add coverage
under Option C-Family Coverage based on an approved SF-2822 by
Employees should periodically review their life insurance coverage
to ensure that they are carrying the appropriate amount of life
insurance for their needs. It is suggested that employees review
their forms when they have a change in marital status (marriage,
divorce, death of spouse), add or lose a dependent child.
All costs can be computed by using the FEGLI calculator at http://www.opm.gov/calculator/worksheet.asp.
The Basic Life amount
is payable based on the employee's tour of duty in a 52-week work
Leave Without Pay (LWOP)
Employee's life insurance
coverage continues automatically at no cost for the first 12 months
of non-pay status. The 12 months may be continuous or broken by
periods of less than 4 consecutive months of pay status. The Exception
is if the employee is receiving compensation benefits during the
first 12 months, his/her continued coverage will not be free -
the Department of Labor will withhold premiums from his/her compensation
payments. Coverage as an employee will terminate after 12 months
of non-pay status or separation from the agency, if earlier. At
that time, the employee will have the right to convert coverage
to an individual policy or continue coverage as a compensationer,
if eligible. The employee or his/her assignee(s), if applicable,
will have the right to port his/her Option B, if eligible. Contact
a benefits specialist for more information.
A terminally ill employee
who has documented medical prognosis that their life expectancy
is 9 months or less, can elect to receive a lump sum partial or
full payment of their Basic insurance. If a partial payment is
elected, the employee cannot later elect to receive another Living
Benefit to receive the remaining Basic insurance. An employee's
decision to receive a Living Benefit is irrevocable. For more
information concerning this benefit, employees must contact OFEGLI
at (800) 633-4542.
Assignment of Life
Employees may irrevocably
assign their life insurance to another person or persons, including
an individual, a corporation or an irrevocable trust. Assignment
means that the employee agrees to give up ownership of their Basic,
Standard and Additional Optional coverage FOREVER. The
employee can never change or cancel the assignment. When an employee
makes an assignment, they must assign all their FEGLI coverage
(except Option C). They cannot assign only a portion of their
coverage. Option C - Family coverage cannot be assigned.
Transfers - If the separation
is a transfer to another Federal agency, the current FEGLI election
Retirement - The retirement system will automatically continue
coverage after retirement if the employee retires on an immediate
annuity and had coverage for:
5 years of service immediately before the commencing date of their
annuity (for annuitants retiring under the Federal Employees Retirement
System (FERS) who postpone receiving their annuity, the 5 years
immediately before their separation date for annuity purposes),
2. All period(s) of service during which that coverage was
available to the employee, and he/she does not convert the coverage
to a private policy he/she does not port the coverage (applicable
to Option B only; see Portability) or the assignee(s), if applicable.
If the employee meets
the rules listed above for continuing coverage into retirement,
he/she will have several choices of how much insurance to carry
after age 65 and retired.
Post-65 Reduction in
the Amount of Coverage
Reduction: 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) electing
the amount of Basic insurance you want after age 65 (or retirement,
if later). The choices are 75% Reduction, 50% Reduction, or No
Reduction. Exception: You must elect No Reduction if you
previously elected partial living benefits.
How the Reduction
The amount of Basic life insurance in force reduces by 2% of the
original amount each month until the original amount has been
reduced by 75%; only 25% of the Basic Insurance. Amount is payable
as a death benefit once the full reduction is reached.
50% Reduction: The amount of Basic life insurance in force
reduces by 1% of the original amount each month until the original
amount has been reduced by 50%; 50% of the Basic Insurance amount
is payable as a death benefit once the full reduction is reached.
No Reduction: There is no reduction in the amount of life
insurance after your 65th birthday; 100% of the Basic Insurance
amount 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.
Default Election: If you don't make an election regarding
the post-65 reduction, you will have the 75% Reduction.
Option A: The amount of Option A automatically reduces
when you reach age 65 (or retire, if later). There is no election.
The amount of coverage reduces by 2% of the original amount each
month until the amount has been reduced by 75%. Only 25% of the
original amount is payable ($2,500) as a death benefit once the
full reduction has been reached.
Options B and C: Effective April 24, 1999, at the time
of retirement or becoming insured as a compensationer, you will:
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 Full Reduction, each multiple of coverage reduces
by 2% of the original amount each month until the amount has
been reduced by 100%. The insurance stops at 12:00 noon 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). The reduction starts at the beginning of the
2nd month after your 65th birthday or the beginning of the 2nd
month after your retirement, if later. Withholdings stop the
month after your 65th birthday (or retirement, if later) and
Options B and/or C are free.
No Reduction: If you choose No Reduction, your Options
B and/or C coverage will not reduce at all. After age 65 (or
retirement, if later), you will continue to pay premiums appropriate
to your age.
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.
To get details on continuing
coverage into retirement go to the FEGLI Handbook (RI 76-26) at
- Employees have temporary coverage for 31 days from date of separation.
They have 31 days from separation or receipt of the Notice of
Conversion Privilege to convert coverage to a non- group policy
through the OFEGLI..
Payment of Benefits
On July 22,1998, Public Law 105-205 was
enacted. This law changes the way benefits are paid under the
FEGLI Program following the death of an employee, annuitant, or
The law requires benefits to be paid in accordance with the terms
of a court decree of divorce, annulment, or legal separation,
or the terms, of a court order or court-approved property settlement
agreement radiating to such a court decree, regardless of whether
the insured individual actually completes a designation complying
with the court order.
The court order supersedes any prior designation of beneficiary elections made by the insured individual if such a court order is in effect. The insured individual cannot change his/her designation, unless the person(s) named in the court order agree(s) in writing or unless the court order is subsequently modified.
This law also allows a court order to direct the insured individual
to make an irrevocable assignment to the person(s) named in the
court order. However, until the insured properly completes an
assignment form, the assignment does not occur.
The court order must be a certified copy and can be submitted
by the insured, the ex-spouse, the attorney, etc. The certified
copy of the court order must be received in the Personnel Office
on or after July 22,1998, and before the insured individual's
Personnel will date stamp the court order and file it in the Official
Personnel Folder. Upon an employee's death, the court order will
be forwarded along with the appropriate paperwork to OFEGLI. When
the employee retires, the court order will be forwarded to the
Office of Personnel Management with the retirement application
OFEGLI will make the final determination after reviewing the court
order and all designation of beneficiary forms as to how benefits
should be paid upon an individual's death.
If a qualifying court order or assignment of benefits under the
FEGLI Program does not exist, benefits will be paid according
to the properly designated beneficiary/beneficiaries or in the
absence of a designation, in the order of precedence.
For detailed information, please visit OPM's web site at http://www.opm.gov/insure/life/ or
contact a member of the Retirement and Benefits Staff at (301)