Office of Personnel Management

Retirement and Insurance Service

1920 1954 1959 

 

1986 

Benefits Administration Letter

Number: 95-215 Date: April 21, 1995 

SUBJECT: Federal Employees' Group Life Insurance:

Announcement of a Limited Open Season

_________________________________________________________________

GENERAL INFORMATION

_____________________________________________

 When Is the The open season will be held from May 22,

 Open Season? 1995, through July 21, 1995.

_____________________________________________

 Why Are We We are having an open season because it is

 Having an required by Public Law 103-409, the FEGLI

 Open Season? Living Benefits Act. We will send specific information relating to

living benefits in a separate Benefits Administration Letter (BAL).

_________________________________________________________________

OPEN SEASON MATERIAL

_____________________________________________

 Revised FEGLI The FEGLI Booklet, RI 76-21, has recently

 Booklet been revised. The Office of Federal Employees' Group Life

Insurance (OFEGLI) has sent a supply to all agencies, as described

in BAL 95-214. 

_____________________________________________

 SF 2817 SF 2817, Life Insurance Election, has not been changed. The

September 1992 and February 1988 editions may still be used.

This form is available from GSA/FSS using the normal

FEDSTRIP/MILSTRIP procedures as specified by your agency's

procurement or acquisitions office. The National Stock Number

(NSN) is 7540-01-231-4280, and the price is $3.97 per hundred.

_____________________________________________
Benefits Administration Letter 95-215

-2-

 Will There Be There will be no special material prepared

 Any Special for this open season.

 Open Season

 Material? Posters, tabletop tent cards, and a video were distributed for the

"FEGLI 93" open enrollment period; however, no such material

will be available for the 1995 limited open season.

You may wish to stock up on SF 2823, Designation of Beneficiary.

_____________________________________________

 What Must Agencies must distribute the revised FEGLI

 Agencies Do? Booklet, RI 76-21, to all eligible employees, whether or not they

are enrolled in FEGLI. This includes employees who are within the

first 12 months of leave without pay (LWOP).

Agencies must also notify their employees of the limited open

season. A sample notice is attached to this BAL.

_________________________________________________________________

OPEN SEASON ELECTIONS

_____________________________________________

 Who Is Eligible Only eligible employees who have waived or

 to Participate cancelled all FEGLI coverage may participate 

 in the Open in the open season.

 Season?

Eligible employees means all employees who are not excluded from

FEGLI coverage by law or regulation. This includes employees

who are within the first 12 months of LWOP (the 12-month

limitation does not apply to employees on LWOP while serving in

an employee organization, while assigned to a State or local

government or to an institution of higher education, or while

transferred to an international organization), employees on sick or

annual leave, employees within the first 12 months of LWOP while

receiving compensation, and reemployed annuitants who are not

otherwise excluded from "employee coverage" by virtue of the type

of their appointment or a break in service.

Employees who have been on LWOP for more than 12 months are

not eligible to participate in this open season.

_____________________________________________
Benefits Administration Letter 95-215

-3-

 What Types of The only type of election that employees can

 Elections Can make is for Basic coverage.

 Employees Make?

Employees cannot elect any Optional coverage. Nor can any

already-insured employee add or increase any Optional coverage.

Existing waivers of Basic insurance will not be disturbed unless a

new election is submitted. Existing designations of beneficiary for

currently enrolled employees also will not be affected.

_____________________________________________

 What Is the Open season elections are effective the first

 Effective Date day of the first pay period which begins on

 of Open Season or after the date the employing office

 Elections? receives the SF 2817.

_____________________________________________

 What about Pay Normally, life insurance elections made

 and Duty Status during an open enrollment period become

 Requirements? effective only after a pay period during which the employee was in

pay and duty status for at least 32 hours.

For this open season only, this pay and duty status requirement is

waived. Basic insurance will become effective whether or not the

employee is in pay and duty status.

_____________________________________________

 Can these These enrollments may be carried into

 Elections Be retirement if the employee otherwise meets

 Carried into the five-year/first-opportunity requirement

 Retirement? of the FEGLI law.

This open season will not be considered a first opportunity to enroll

for purposes of meeting the requirements for continuing FEGLI as

an annuitant.

_____________________________________________

 What's Different In previous open enrollment periods,

 for Employees on employees on LWOP could make a life insurance

 Leave without election; however, that election would not

 Pay? become effective until the employee had returned to work and had

been in pay and duty status for 32 hours within one pay period.
Benefits Administration Letter 95-215

-4-

For this open season only, life insurance elections made by

employees within the first 12 months of LWOP will become

effective the first day of the first pay period beginning on or after

the employing office receives the SF 2817, regardless of whether

the employee returns to pay and duty status.

The insurance elected by an employee on LWOP terminates when

the employee has completed 12 months in nonpay status, even if the

insurance has been in effect for less than 12 months. It is the length

of the nonpay status, not the length of the insurance coverage, that

determines when the insurance terminates. These employees would

be entitled to the 31-day extension of coverage and the right to

convert to a nongroup policy. (This 12-month limitation does not

apply to employees who are on LWOP while serving in an

employee organization, while assigned to a State or local

government or to an institution of higher education, or while

transferred to an international organization.)

The amount of insurance acquired by an employee on LWOP is the

same amount he/she would have if he/she were in pay status.

_____________________________________________

 Processing Open The employing office must enter the date of

 Season Elections receipt on all open season SF 2817s. An authorized agency official

must ensure that the employee is eligible for Basic insurance and

has elected only Basic and must assign an effective date.

Part 1 of the form must be filed in the employee's Official Personnel

Folder or its equivalent. Part 2 of the form is for agency use in

determining the life insurance code to enter on SF 50. Part 3 of the

form must be returned to the employee.

The numeric code for an open season change is the number "6." 

Agencies should fill in the number "6" in the box provided on the

SF 2817 for all open season changes.

_____________________________________________
Benefits Administration Letter 95-215

-5-

 Belated Open Employing offices must receive open season

 Season Elections elections by close of business July 21, 1995. However, an

employing office may use its authority, within six months after the

end of the open season, to make a determination that an employee

was unable to file an open season election on time for reasons

beyond his/her control. An employing office may accept an election

from an employee within 31 days after making such a

determination. These belated open season elections and

accompanying premium withholdings will be effective retroactive to

the first pay period beginning on or after July 21, 1995. Failure on

the part of the employee to file a belated election within the 31 days

provided will be considered a waiver of the opportunity to file.

_________________________________________________________________

NON-OPEN SEASON ELECTIONS MADE DURING THIS TIME

_____________________________________________

 What about Other New hires and employees who first become

 Elections Made eligible for FEGLI coverage during the May 22

 during Open through June 21 open season may elect FEGLI

 Season? coverage, including Optional coverage, as usual. The usual rules

on effective dates and pay and duty status requirements will apply

for these individuals, since they will not be making open season

changes.

Agencies must carefully review SF 2817s received during the open

season to determine whether the election is an open season change

or another type of change and apply the proper rules.

_________________________________________________________________

Abby L. Block, Chief

Insurance Policy

 and Information Division

Attachment
SUGGESTED ANNOUNCEMENT

SUBJECT: Limited Life Insurance Open Season, May 22, 1995, through July 21, 1995

A limited open season under the Federal Employees' Group Life Insurance (FEGLI) Program will

be held from May 22, 1995 through July 21, 1995. During this open season, any eligible

employee who is not currently enrolled may elect Basic insurance; employees may not elect any

Optional insurance. Employees who are already enrolled in FEGLI may not participate in the

open season. No physical examination is required. Any existing waiver of Basic insurance will

not be disturbed unless a new election is submitted. Similarly, existing designations of beneficiary

for currently enrolled employees will not be affected.

You will receive a revised FEGLI Booklet, RI 76-21, which provides information about the

FEGLI Program. Please review the Booklet carefully before making your decision about FEGLI

coverage. If you are eligible and wish to enroll, complete a Standard Form (SF) 2817, Life

Insurance Election. This form is available from [name and location of appropriate person or

office] and must be submitted to that office in time to be received before the close of business on

July 21, 1995. Open season elections and accompanying withholdings will be effective the first

day of the first pay period on or after the date the employing office receives the SF 2817.

NOTE: Remember that, in order to carry any newly-elected coverage into retirement, it must be

in effect for the five years of service immediately before the date of retirement (or for the entire

period(s) of service during which it was available, if this is less than five years). If you are

approaching retirement eligibility, you should be aware of the five-year/first-opportunity

requirement, so that you will not be surprised if you are not able to take your coverage into

retirement. There is no waiver authority under the FEGLI law. If you do not meet the fiveyear/first-opportunity requirement, you will be eligible to convert to nongroup insurance (without

a medical examination).

If you need further information or assistance, contact [enter name, location, and phone number

of installation insurance specialist].