United States

Office of 

Personnel Management

The Federal Government’s Human Resources Agency

Retirement and Insurance Service

Benefits Administration Letter

 

Number: 01-202 Date: January 29, 2001 

Subject: Federal Employees Health Benefits: More on Children's Equity

On November 21, 2000, we issued Benefits Administration Letter (BAL) 00-224, providing 

information on implementing the Federal Employees Health Benefits Children's Equity Act of 2000 

(Public Law 106-394).

On December 14, 2000, the Financial Policy Staff issued Payroll Office Letter (POL) P-00-36, 

providing information to payroll offices. We have attached a copy of this POL.

As we informed you in BAL 00-224, payroll offices will flag the records of employees who are 

subject to a court or administrative order to provide health benefits for their children. When such 

an employee attempts to make an enrollment change, the payroll office may contact the personnel 

office to determine whether the change is allowable.

Also, we stated in BAL 00-224 that when such an employee goes into nonpay status, he/she cannot 

elect to terminate the coverage. The employee must either make direct premium payments or incur 

a debt to be repaid when the employee returns to pay status. Please note that this applies only 

during the first year in nonpay status. Since, by law, an employee cannot continue FEHB coverage 

after a year in nonpay status, coverage terminates at the end of a year, even for those employees 

subject to a court/admin order.

Abby L. Block

Assistant Director

 For Insurance Programs

Attachment

Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System
 

Civil Service Federal Employees Federal Employees Federal Employees 

Retirement Group Life Health Benefits Retirement 

System Insurance Program System 

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Retirement and Insurance Service 

Payroll Office Letter 

Number: P-00-36 Date: December 14, 2000 

SUBJECT: FEDERAL EMPLOYEES HEALTH BENEFITS - CHILDREN'S EQUITY ACT 

Public Law 106-394, the "Federal Employees Health Benefits Children's Equity Act of 2000," requires 

agencies to ensure that employees, who are required to do so by a court or administrative order, 

provide health benefits coverage for their children. Agencies are required to enroll employees in the 

FEHB, if they do not voluntarily enroll or purchase other health benefits coverage. BAL 00-224 

discusses in detail the effect of Public Law 106-394 and can be downloaded from our web-site at 

http://www.opm.gov/asd/index.htm. 

After they are involuntarily enrolled in the FEHB, these employees face restrictions as to the type of 

enrollment changes they may make while subject to the court or administrative order. Since they will 

have the capability to attempt to change their enrollment via Employee Express, we need to ensure 

that only authorized changes are accepted. Therefore, to prevent unauthorized enrollment changes, 

agencies must "intercept" all FEHB enrollment changes attempted by these employees via Employee 

Express. Such enrollment changes may be processed into payroll systems only after personnel offices 

have given the approval to do so. If this procedure results in the delay of authorized enrollment 

changes, they should be processed retroactively. 

You will recognize employees involuntarily enrolled in the FEHB by the SF 2809s prepared by your 

personnel office. The SF 2809s will include the following annotation in the "remarks" block in Part H: 

"Being enrolled for self and family coverage involuntarily under Public Law 106-394" 

Please review the changes you have processed during the recent Open Season to ensure that 

employees effected by Public Law 106-394 have not made unauthorized enrollment elections. If you 

find that you have processed such unauthorized changes, discuss the appropriate remedies with your 

personnel offices as soon as practicable. 

If you have any questions regarding this information, we would prefer that you email us at 

finance@opm.gov, so that we have a record of our communication. You may also phone us on (202) 

606-0606. 

 

 Robert A. Yuran, Chief 

 Financial Policy Staff 

 Retirement and Insurance Service