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: 99-205 Date: February 10, 1999

Subject: Federal Employees’ Group Life Insurance: FEGLI 99 Open Enrollment

Period

GENERAL INFORMATION

________________________________________________

Background Pub. L. 105-311, Federal Employees Life Insurance

Improvement Act, enacted October 30, 1998, made

numerous changes to the Federal Employees’ Group Life

Insurance (FEGLI) Program. Because of these changes, the

law requires the Office of Personnel Management (OPM) to

hold an open season.

The FEGLI 99 open enrollment period will be held from

April 24, 1999, through June 30, 1999.

________________________________________________

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

to provide detailed guidance regarding the conduct of the

upcoming open enrollment period.

______________________________________________________________________________

FEGLI 99 OPEN ENROLLMENT PERIOD

________________________________________________

Open Enrollment Material BAL 99-201, dated January 12, 1999, contained

information on the various materials that will be available

for FEGLI 99 and gave ordering instructions. Please

remember that no material will be sent automatically.

Agency headquarters Insurance Officers must order all

material directly from the Office of Federal Employees’

Group Life Insurance (OFEGLI); OFEGLI will not accept 
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telephone orders or orders from anyone other than agency headquarters Insurance Officers.

________________________________________________

What Material Must Agencies must give each employee a copy of the revised - 

Employees Receive? April 1999 - FEGLI Booklet (RI 76-21 [RI 76-20 for the

Postal Service]). Each employee must also receive a copy

of the FEGLI 99 Open Enrollment Period Pamphlet 

(FE 74 A [FE 74 B for the Postal Service]).

______________________________________________________________________________

FEGLI 99 - ELIGIBILITY FOR PARTICIPATION

________________________________________________

Who Is Eligible to All active employees are eligible to participate, except

Participate in the those who are in a position that is excluded from FEGLI

Open Enrollment? coverage by law or regulation.

________________________________________________

What about Annuitants Annuitants cannot participate in the open enrollment

and Compensationers? period unless they are reemployed in a position in which

they are eligible for coverage.

Compensationers who are insured as compensationers

cannot participate in the open enrollment period.

Compensationers who are still insured as employees (i.e.,

during the first 12 months in nonpay status) can participate

in the open enrollment period on the same basis as other

employees in nonpay status (see below).

Compensationers who are reemployed on a part-time basis

are also eligible to participate, unless the position is

excluded by law or regulation.

________________________________________________

What about Employees in Employees in nonpay status may participate in the open

Nonpay Status? enrollment period. However, any coverage they elect

during the open enrollment cannot become effective until

they are back in pay and duty status. (See below for

information on the effective date of new coverage and pay

and duty status requirements.)

EXCEPTION: Employees who are entitled to continue their

benefits while on leave-without-pay to work full-time for

employee organizations; detailed to international

organizations; or on temporary assignment to State, local,

and Indian tribal governments, institutions of higher
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education, and other organizations eligible under the

Intergovernmental Personnel Act of 1970 do not have to

return to pay and duty status with their Federal agency. 

However, they must meet the pay and duty status

requirements at their current employment site and must

provide proof that they meet these requirements before any

coverage they elect during the open enrollment period can

become effective.

______________________________________________________________________________

FEGLI 99 - ELECTIONS AND EFFECTIVE DATES

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What Kinds of Elections Employees can elect any and all coverage for which they

Can an Employee Make? are eligible.

________________________________________________

What Form Should There is a special FEGLI 99 Open Enrollment Period

Employees Use? Election Form (RI 76-27). Employees cannot use 

SF 2817 to make FEGLI 99 open enrollment period

elections.

It is important to note that employees making an open

enrollment election must complete the form indicating ALL

coverage they wish to have - not just the new coverage. 

Any coverage not shown on the RI 76-27 will be considered

to have been waived.

________________________________________________

Is Positive Reenrollment No. Only employees who want to make a change in their

Required? coverage need to complete an enrollment form.

An employee who takes no action during the open

enrollment period will keep the same coverage he/she had

before the open enrollment period.

________________________________________________

When Will Coverage Elected Coverage elected during the FEGLI 99 open enrollment

during the Open Enrollment period becomes effective the first pay period beginning on

Period Become Effective? or after April 23, 2000, which follows a pay period during

which the employee was in pay and duty status.

________________________________________________
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How Much Pay and Duty A full-time employee must be in pay and duty status for 32

Status Is Necessary to Meet hours during the pay period before the one in which the

the Requirements? coverage is to become effective.

A part-time employee must be in pay and duty status for

one-half of the regularly-scheduled tour of duty shown on

his/her current SF 50.

An intermittent employee or an employee without a

regularly-scheduled tour of duty must be in pay and duty

status for one-half of the hours customarily worked in a pay

period. Employing offices can determine the number of

hours customarily worked by totaling the number of hours

worked in the calendar year quarter ending April 30, 1999,

and dividing that by the number of pay periods in that

quarter.

______________________________________________________________________________

FEGLI 99 - PROCESSING OPEN ENROLLMENT ELECTIONS

________________________________________________

How to Process FEGLI 99 The employing office must enter the date of receipt on the

Elections open enrollment election form (RI 76-27). An authorized

agency official must verify that the employee is eligible for

the coverage elected.

The employing office must give a copy of the RI 76-27 to

the employee, as verification of receipt on a timely basis. 

(Please note that there are 2 employee copies of the election

form. One copy goes to the employee at the time of

submission; the other copy, showing the effective date, goes

to the employee when the election is processed.)

Agencies must develop a system for holding the election

forms until they can be processed in 2000. Whether you put

them in the Official Personnel Folder (OPF) or maintain

them separately from the OPF, you should flag the OPF in

some way to indicate that the employee made an open

enrollment election.

Prior to processing the election forms in 2000, an

authorized agency official must verify that the employee

meets the pay and duty status requirements.

________________________________________________
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When Do Employees Start Employees do not start paying the premiums for their new

Paying Premiums for the coverage until it goes into effect in 2000.

Coverage Elected during

the Open Enrollment Period?

________________________________________________

What Happens If an If an employee makes an open enrollment election but

Employee Retires before retires before the new coverage goes into effect in 2000,

the New Coverage he/she never will have had the new coverage. Therefore

Becomes Effective? the employee will not be able to continue the coverage into

retirement.

The same is true if the employee starts receiving

compensation before the effective date of the new coverage.

In both cases, you should void the RI 76-27 and indicate in

the “Remarks” section that the employee retired or started

receiving compensation.

________________________________________________

What Happens If an If an employee makes an open enrollment election but dies

Employee Dies before before the new coverage goes into effect in 2000, he/she

the New Coverage never will have had the new coverage. Therefore,

Becomes Effective? OFEGLI will pay benefits according to the “old” coverage.

The same is true if the employee elects increased Option C

coverage and a covered family member dies before the new

coverage goes into effect. OFEGLI will pay benefits

according to the “old” coverage.

In both cases, be sure to certify the proper amount of

coverage to OFEGLI.

________________________________________________

What Happens If an If an employee who has made an open enrollment election

Employee Transfers to transfers to another agency before the election becomes

Another Agency before effective, attach the RI 76-27 to the OPF when you send it

the New Coverage to the employee’s new agency. The new agency will

Becomes Effective? process the open enrollment election at the appropriate time

if the employee meets the pay and duty status requirements.

______________________________________________________________________________
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FEGLI 99 - MISCELLANEOUS INFORMATION

________________________________________________

Can Employees Continue The FEGLI 99 open enrollment period is not considered

This Newly Elected the first opportunity for electing coverage. Therefore, an

Coverage If They Retire employee must have the newly elected coverage for 5

or Become Insured As years before retiring or starting to receive compensation 

Compensationers? in order to continue coverage as an annuitant or

compensationer.

EXCEPTION: For most employees, FEGLI 99 will be their

first opportunity to elect 2-5 multiples of Option C

coverage. Therefore, employees who elect these multiples

of Option C and retire after the coverage has gone into

effect will be eligible to continue the coverage as long as

they meet the 5-year requirement for their previous Option

C coverage.

________________________________________________

What about Belated Open An employing office may accept a belated open

Enrollment Elections? enrollment election within 6 months after the end of the

open enrollment period. In order to accept a belated

election, the employing office must determine that the

employee was unable to make the election on a timely basis

due to circumstances beyond his/her control. After the

employing office has made such a determination, the

employee has 31 days in which to make his/her election.

The effective date for a belated open enrollment election is

the same as that for an election made on time, i.e., the first

pay period beginning on or after April 23, 2000, which

follows a pay period during which the employee was in pay

and duty status.

________________________________________________

What about Elections Employees can still make “regular” elections during the

Made Due to a Life open enrollment period. Employees can elect Basic,

Event or Having a Option A, and Option B by having a physical exam.

Physical Exam during the Employees can elect or increase Option B and/or Option 

Open Enrollment Period? C if they have a life event.

These elections are made on SF 2817. This will distinguish

them from open enrollment elections. These elections will

become effective within the same time frames that they

always do. Only open enrollment elections have the 2000

effective date.

________________________________________________
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What Happens If an If an employee has a life event or gets a physical exam 

Employee Makes an Open after he/she has submitted an open enrollment election but

Enrollment Election and before the election becomes effective, the employee can

Later Makes an Election elect the appropriate coverage on SF 2817, which is to be

Due to a Life Event or processed in the normal way.

Having a Physical Exam?

Since the employee’s OPF will have been flagged, you will

know that he/she made an open enrollment election. Check

the RI 76-27 to see what coverage was elected. If the

coverage elected during the open enrollment period is the

same as that elected due to the life event or physical exam,

void the open enrollment election. Indicate in the

“Remarks” section that the employee elected coverage due

to a life event or a physical exam, so the open enrollment

election doesn’t need to be processed.

If the coverage elected on the SF 2817 is different from that

elected on the RI 76-27, contact the employee to verify

what coverage he/she wants. It may be that some of the

coverage elected during the open enrollment period could

not be elected otherwise. For example, an employee who

gets married can elect only 1 multiple of Option B and

Option C, but he/she may have elected more multiples on

the RI 76-27. In this case, process whatever can be

processed due to the life event, and process the remaining

multiples later as an open enrollment election.

________________________________________________

What If an Employee If an employee submits an RI 76-27 cancelling FEGLI

Cancels His/Her Life coverage, contact the employee to verify that he/she wants

Insurance? the cancellation to be effective in 2000 as an open

enrollment election. If the employee wants the cancellation

to be effective right away, have him/her complete SF 2817.

If an employee who made an open enrollment election later

submits SF 2817 cancelling FEGLI coverage, the

cancellation will take precedence over the open enrollment

election. Process the SF 2817 within the normal time

frames, and void the RI 76-27. In the “Remarks” section of

the RI 76-27 state that the employee subsequently cancelled

coverage.

________________________________________________

Can an Employee Change Yes. If it’s still within the open enrollment period, he/she

His/Her Open Enrollment can simply submit a revised RI 76-27. The employing

Election after It’s Been office should void the previous open enrollment election

Made? form and process the one with the later date.
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After the open enrollment period is over, an employee can

notify the employing office in writing that he/she wishes to

void the open enrollment election. The employee cannot

make a new election at this time, however; the employee

will simply keep whatever coverage he/she already has,

unless he/she chooses to cancel some or all of that

coverage.

________________________________________________

Notice to Employees Attached is a sample notice telling employees about the

FEGLI 99 open enrollment period.

______________________________________________________________________________

Abby L. Block, Chief

Insurance Policy

 and Information Division

Attachment
SUGGESTED ANNOUNCEMENT

SUBJECT: FEGLI 99 OPEN ENROLLMENT PERIOD - APRIL 24, 1999,

THROUGH JUNE 30, 1999

An open enrollment period for the Federal Employees’ Group Life Insurance (FEGLI) Program

will be held from April 24, 1999, through June 30, 1999.

What Kinds of Elections Can I Make during the Open Enrollment Period?

During the FEGLI 99 open enrollment period you can elect any life insurance that you don’t

currently have.

Is There Anything New Available during the Open Enrollment Period?

Yes. Until now, Option C coverage, which is coverage on your eligible family members, was

limited to $5,000 for your spouse and $2,500 for each eligible child. You can now elect up to 5

multiples of those amounts, making the maximum amounts available $25,000 for your spouse and

$12,500 for each eligible child. You have to elect the same number of multiples for each family

member.

When Will My New Coverage Go into Effect?

Coverage elected during the open enrollment period will become effective the first pay period

beginning on or after April 23, 2000. You have to be in pay and duty status during the pay period

before the coverage becomes effective. For full-time employees, the amount of pay and duty

status required is 32 hours. Employees who are not full-time should check with their employing

office.

Will I Have to Start Paying the Premiums for My New Coverage Right Away?

No. You don’t have to start paying the premiums for your new coverage until it goes into effect

in 2000.

What If I Don’t Want to Change My Coverage? Do I Have to Do Anything?

No. If you don’t want to make any changes, you don’t have to do anything. You will keep

exactly what you have now.
What Do I Have to Do If I Want to Elect More Coverage?

You will receive information about the FEGLI Program: a revised FEGLI Booklet (RI-76-21 [or

RI 76-20, if you work for the Postal Service]) and a special FEGLI 99 Open Enrollment Period

Pamphlet (FE 74 A [or FE 74 B, if you work for the Postal Service]). If, after reviewing the

material, you decide you want to elect more coverage, you must complete a special FEGLI 99

Open Enrollment Election Form (RI 76-27), which you can get from your employing office or

from the FEGLI website at the address shown below. You must fill out the form showing ALL

coverage that you want, not just the new coverage.

Will I Be Able to Continue this New Coverage If I Retire?

In order to continue FEGLI coverage when you retire, you must retire on an immediate annuity

and you must have had the coverage for the 5 years of service right before you retire. If you

don’t have the coverage for 5 years, you can continue it if you’ve had it since your first

opportunity to elect it. For instance, if you elect Option B during the open enrollment period, you

will have to have it for 5 years before you retire in order to continue it. This is because the open

enrollment period wouldn’t be your first opportunity to elect Option B; you could have elected it

when you first became eligible for it. However, since 2-5 multiples of Option C coverage were

never available before, this open enrollment period is your first opportunity to elect them. If you

do so and retire anytime after these additional multiples go into effect in 2000, you will be eligible

to continue the coverage when you retire, as long as you meet the 5-year requirement for your

previous Option C coverage.

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

of installation insurance officer]. You can also obtain information from the Office of Personnel

Management’s FEGLI website: www.opm.gov/insure/life.