United States 

Office of 

Personnel Management

The Federal Government’s Human Resources Agency 

Retirement and Insurance Service 

Benefits Administration Letter
 

Number: 03-205 Date: March 25, 2003 

Subject: Federal Employees’ Group Life Insurance: Effect of the Retroactive Pay 

Raise on the Amount of FEGLI Coverage and on Life Insurance 

Certifications 

Background 

On March 21, 2003, the President signed an Executive Order authorizing a retroactive pay 

increase to white collar Federal employees. Revised salary tables are located at www.opm.gov. 

Purpose 

The purpose of this Benefits Administration Letter (BAL) is to provide guidance to agencies 

concerning the effect of the retroactive raise on the amount of Federal Employees’ Group Life 

Insurance (FEGLI) coverage and on premium withholdings and Government contributions and to 

explain when a revised SF 2821 (Agency Certification of Insurance Status) is or is not needed. 

Amount of Coverage, Withholdings, and Government Contributions 

If the retroactive pay raise moves an employee into a new $1,000 bracket, the amount of his/her 

Basic insurance (and Option B, if the employee has that coverage) increases. In computing any 

retroactive lump sum payment for these employees, agencies must withhold any additional 

amount due for Basic insurance and Option B and remit that to the Office of Personnel 

Management (OPM), along with any additional Government contributions, in the usual manner. 

SF 2821s for Employees Who Retired 

You will not need to complete new SF 2821s for employees who retired after the effective date 

of the pay raise. Agencies will be submitting a supplemental Individual Retirement Record to 

OPM showing the adjusted pay. The retirement office will use this to recompute the annuity and 

the amount of the annuitant’s FEGLI coverage. 

Civil Service 

Retirement 

System 

Federal Employees’ 

Group Life 

Insurance Program 

Federal Employees 

Health Benefits 

Program 

Federal Employees 

Retirement 

System 

Federal Long 

Term Care 

Insurance 

Program 
 

SF 2821s for Employees Who Separated or Completed 12 Months in Nonpay Status 

The SF 2821 is necessary for employees who wish to convert when their coverage terminates 

due to separation or completion of 12 months in nonpay status; however, most employees whose 

coverage terminates do not choose to convert. Since the number of individuals who convert their 

coverage is small, you will not need to complete revised SF 2821s for all employees who 

separated or completed 12 months in nonpay status since the effective date of the retroactive pay 

increase. OFEGLI (the Office of Federal Employees’ Group Life Insurance) will identify 

anyone who has converted or has started the conversion process and will contact agencies for a 

revised SF 2821 when necessary for those specific individuals. 

SF 2821s for Employees Who Died 

You will need to send OFEGLI a revised SF 2821 for any employee who died since the effective 

date of the pay raise, if the pay raise moved the employee into a different $1,000 bracket. 

 Abby L. Block, Special Advisor 

for Employee and Family Support 

 Strategic Human Resources Policy 

2