Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System

 

 United States

Office of Personnel Management

Retirement and Insurance Service

Benefits Administration Letter

Number: 99-204 Date: February 10, 1999 

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

Purpose The purpose of this Benefits Administration Letter (BAL) is

to transmit the new age bands and premiums under the

Federal Employees’ Group Life Insurance (FEGLI)

Program and to implement a change in the way employees

move from one age band to another.

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New Premiums The Office of Personnel Management (OPM) periodically

reviews the FEGLI rates to determine whether

circumstances require any changes in the premiums. The

last premium change was effective January 1, 1993.

Because of lower mortality rates in most age groups, OPM

has decided to revise the FEGLI premiums. Premiums are

being reduced for Basic insurance and in most age bands for

Optional insurance. The new rates will be published in

regulation; we will notify you by another BAL when those

regulations are published.

The new premium tables are attached.

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New Age Bands Pub. L. 105-311, Federal Employees Life Insurance

Improvement Act, enacted October 30, 1998, made

numerous changes to the FEGLI Program. One of those

changes is to allow employees who are retiring or becoming

insured as compensationers to elect unreduced Option B

and/or Option C coverage. Currently, these coverages

automatically begin to reduce when an
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annuitant/compensationer reaches age 65. Another change

the new law makes is to provide a three-year portability

demonstration project, which allows employees whose

insurance is terminating due to separation or completion of

12 months in nonpay status to continue their Option B

coverage on a direct pay basis. (We will provide detailed

information regarding these changes in a later BAL.)

Since Options B and C may now be continued to a later age

in retirement, and Option B may be continued through

portability, additional age bands are necessary.

Therefore, the previous upper age band of “60 and over”

has been replaced by three new age bands: 60-64, 65-69,

and 70 and over. The attached premium tables reflect the

new age bands, and separate rates have been developed for

those age bands for Options B and C. (For ease of

agencies’ administration, we have shown Option A with the

same age bands as Options B and C; however, the premiums

are the same for all Option A age bands beyond age 60.)

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Change in the Way Currently, when an employee has a birthday that moves

Employees Move from him/her to another age band, the premiums for the new

One Age Band to Another age band don’t go into effect until the January following the

birthday.

To follow standard industry practice, we are changing this

policy. When an employee has a birthday that moves

him/her to another age band, the premiums for the new age

band will become effective the pay period following the pay

period in which the birthday occurs.

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Effective Date The effective date for these changes is April 24, 1999.

The new premiums and age bands will be in place the first

pay period beginning on or after April 24, 1999.

The change in moving from one age band to another in the

pay period following the employee’s birthday is effective for

birthdays on or after April 24, 1999.

Employees who have a birthday from January 1, 1999,

through April 23, 1999, that moves them into a new age

band will start paying the premiums for the new age band
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the first pay period beginning on or after April 24, 1999.

________________________________________________

Payroll Office Payroll offices will be notified of these changes through a

Notification Payroll Office Letter.

______________________________________________________________________________

Abby L. Block, Chief

Insurance Policy

 and Information Division

Attachment
BIWEEKLY FEGLI PREMIUMS - EFFECTIVE APRIL 24, 1999

BASIC INSURANCE

Withholding from employee: $0.1550 per $1,000

Government contribution: $0.0775 per $1,000

OPTION A 

Under 35 $0.30

35-39 $0.40

40-44 $0.60

45-49 $0.90

50-54 $1.40

55-59 $2.70

60-64 $6.00

65-69 $6.00

70 and over $6.00

OPTION B (per $1,000)

Under 35 $0.03

35-39 $0.04

40-44 $0.06

45-49 $0.10

50-54 $0.15

55-59 $0.31

60-64 $0.70

65-69 $0.90

70 and over $1.40

OPTION C (per multiple)

Under 35 $0.27

35-39 $0.34

40-44 $0.46

45-49 $0.60

50-54 $0.90

55-59 $1.45

60-64 $2.60

65-69 $3.00

70 and over $3.40