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

United States

Office of 

Personnel Management

The Federal Government’s Human Resources Agency

Retirement and Insurance Service

Benefits Administration Letter

 

Number: 02-316 Date: September 26, 2002 

Subject: Federal Employees’ Group Life Insurance: New Premiums and Age Bands

The purpose of this Letter is to provide important changes to FEGLI Option B and C age bands and 

to withholdings and contributions rates. All the changes discussed in the Letter are effective with 

the first day of the first pay period in calendar year 2003.

NEW AGE BANDS

Agency payroll offices must add new age bands for Option B and C coverage:

For Option B, the following age bands must be added:

Current New

60-64

65-69

70-74

75-79

60 and above

80 and over

For Option C, the following age bands must be added:

Current New

70-74

70 and above 75-79

80 and over
2

NEW WITHHOLDINGS AND CONTRIBUTIONS

Basic Life Insurance. 

For employees, the new withholding and contribution rates are, as follows:

Per $1,000 of coverage

Biweekly Monthly

Withholdings 0.1500 0.3250

Contributions 0.0750 0.1625

For retirees, the monthly withholding rates for “50% Reduction” and “No Reduction” Basic life 

insurance coverage will change, as follows: 

Withholding Rate

[$ per $1,000 of coverage] Election Before 

age 65

First month after 

age 65

No change 75 percent reduction .3250 Free

New rate 50 percent reduction .9250

[.3250+.60] .60

New Rate No reduction 2.1550

[.3250+1.83] 1.83

Option A. There will be no changes to Option A withholding rates.

Option B. Withholding rates for Option B will be as follows:

Withholding Rate

Age Band [$ per $1,000 of coverage]

Biweekly Monthly

No change Under 35 0.03 0.065

No change 35-39 0.04 0.087

No change 40-44 0.06 0.130

New rate 45-49 0.09 0.195

New rate 50-54 0.14 0.303

New rate 55-59 0.28 0.607

New band 60-64 0.60 1.300

New band 65-69 0.71 1.538

New band 70-74 0.87 1.885

New band 75-79 1.07 2.318

New band 80 and over 1.27 2.752

We will issue BALs in the fall of 2003 and 2004 to announce the employee withholdings for 

these new age bands for 2004 and 2005, respectively.
3

Option C. Withholding rates for Option C will be as follows:

Withholding Rate [$ per multiple] Age Band Biweekly Monthly

No change Under 35 0.27 0.59

No change 35-39 0.34 0.74

No change 40-44 0.46 1.00

No change 45-49 0.60 1.30

No change 50-54 0.90 1.95

No change 55-59 1.45 3.14

No change 60-64 2.60 5.63

No change 65-69 3.00 6.50

New band 70-74 3.40 7.37

New band 75-79 4.50 9.75

New band 80 and over 6.00 13.00

Note above that there will be no changes to the withholding rates for any existing age bands.

This BAL is being issued in conjunction with BAL 02-209 dated September 25, 2002. 

If you have any questions about the matters discussed in this letter, we would prefer that you 

email them to us at finance@opm.gov, so that we may retain a record of them. You may also call 

us on (202) 606-0606.

Robert A. Yuran, Chief 

Financial Policy Staff