United States 

Office of 

Personnel Management

The Federal Government’s Human Resources Agency 

Benefits Administration Letter 

Number: 04-207 Date: September 7, 2004 

Subject: Federal Employees’ Group Life Insurance Program: Belated Open Season 

Elections and Open Season Election Errors 

GENERAL INFORMATION 

Background 

The Office of Personnel Management (OPM) is conducting an open season for the Federal 

Employees’ Group Life Insurance (FEGLI) Program from September 1, 2004, through 

September 30, 2004. This is the fourth in a series of Benefits Administration Letters (BALs) 

providing information relating to the open season. 

• On May 25, 2004, we issued BAL 04-203 announcing the open season and providing 

information on making elections, the effective date of new coverage, and pay and duty 

status requirements. 

• On July 16, 2004, we issued BAL 04-205 describing the educational materials available 

for the open season and giving instructions on ordering materials. 

• On August 11, 2004, we issued BAL 04-206 providing information on the open season 

website and giving text for email messages that agencies can send to employees 

regarding the open season. 

Purpose 

The purpose of this BAL is to discuss belated open season elections and open season election 

errors resulting in the inadvertent cancellation of Optional insurance. 

BELATED OPEN SEASON ELECTIONS 

Regulatory Authority 

FEGLI regulations (5 CFR 870.507(d)) allow a belated open season election if, within 6 months 

after an open season ends, an agency determines that an employee was unable to make the 

election on a timely basis for reasons beyond his/her control. If an agency makes such a 
determination, the employee must make the election within 31 days after the agency’s 

notification. A belated election is effective the same date as a timely election and is subject to 

the same pay and duty status requirements. 

Agencies may use this authority to make belated election determinations through March 31, 

2005. 

Special Authority for the FEGLI 2004 Open Season 

OPM is granting agencies the authority to accept belated open season elections beyond the 6-

month regulatory time limit for 2 categories of employees: 

1. Employees who have been called to active military duty in the Reserves or National 

Guard before October 1, 2004; and 

2. Employees who have been sent overseas in a civilian military support capacity before 

October 1, 2004. 

Employees in the first category may make an open season election within 31 days of returning 

to a covered civilian position, even if their return is after March 31, 2005. Employees in the 

second category may make an open season election within 31 days of returning to a covered 

position that’s not in a military support capacity, even if that return is after March 31, 2005. 

Effective Date of Elections Made under the Special Authority 

The effective date of coverage elected under this special authority is the same date as all other 

open season elections: The first day of the first pay period that begins on or after September 1, 

2005, and follows a pay period during which the employee meets the pay and duty requirements 

(see BAL 04-203). 

To determine the effective date for a specific employee look at the “normal” effective date 

(September 4, 2005, for most employees) and see if the employee met the pay and duty status 

requirements in the preceding pay period. If not, move the effective date forward until you come 

to the start of a pay period that follows one in which the employee did meet the pay and duty 

status requirements. If the effective date is retroactive, the employee must pay premiums back to 

that date. 

Note: These extended belated open season elections, like all other open season elections (both 

timely and belated), must be made on the FE-2004, not on the SF 2817. Note in the Remarks 

section that you are allowing the belated election under the special authority granted in this BAL 

(or under the regulatory authority at 5 CFR 870.507(d) if that is the case). 

Please keep track of the number of belated elections you allow under this authority, as OPM will 

request this information at some point. 

OPEN SEASON ELECTION ERRORS 

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Not Signing for All Coverage 

When making an open season election, an employee must sign for all coverage he/she wants. 

This includes signing for all existing coverage (if the employee wants to keep that coverage), in 

addition to signing for new coverage. For example, an employee who has Basic insurance and 5 

multiples of Option C, who wants to add 5 multiples of Option B, must complete the FE-2004 

election form by signing for the existing coverage (Basic and 5 multiples of C), as well as the 

new coverage (5 multiples of B). If the employee signs for only Basic and the new Option B 

coverage, he/she cancels the existing Option C coverage. 

Despite our displaying this information prominently on the FE-2004 election form and other 

open season material, we know that some employees will complete the FE-2004 incorrectly and 

sign only for Basic and the new coverage being elected, thereby inadvertently canceling their 

current Optional coverage. 

(Note: An employee must have Basic insurance in order to have any Optional insurance. If an 

employee signs for Optional insurance only, note in the Remarks section of the FE-2004 that the 

employee forgot to sign for Basic. Process the open season election as if the employee did sign 

for Basic.) 

Correction Authorized 

OPM is authorizing agencies to correct an employee’s error and reinstate the erroneously 

cancelled Optional coverage, if the employee notifies his/her personnel office of the mistake 

before the end of the 2nd pay period following the one in which the open season election became 

effective. (For employees whose coverage goes into effect 9/4/05, this would be the pay period 

ending 10/15/05.) 

Example 1 

Marty had Basic insurance and 1 multiple of Option B. During the open season he wanted to 

add 5 multiples of Option C. Marty completed the FE-2004 electing Basic and 5 multiples of 

Option C. By not signing for Option B, Marty cancelled his existing Option B coverage. 

Marty’s new coverage (Basic and Option C) went into effect 9/4/05. Marty received his pay for 

that pay period on 9/23/05. He noticed right away that no withholding had been made for 

Option B. He checked with his payroll office and learned that they had stopped withholding for 

Option B, because he had cancelled it with his open season election. Marty contacted his 

personnel office on 10/3/05 and explained that he had made a mistake. His personnel office can 

reinstate his Option B coverage retroactive to 9/4/05. Marty must pay the back premiums. 

Example 2 

Marcy had Basic insurance and 1 multiple of Option B. During the open season she wanted to 

add 5 multiples of Option C. Marcy completed the FE-2004 electing Basic and 5 multiples of 

Option C. By not signing for Option B, Marcy cancelled her existing Option B coverage. 

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Marcy’s new coverage (Basic and Option C) went into effect 9/4/05. Marcy received her pay for 

that pay period on 9/23/05, but she didn’t check her withholdings. In December Marcy finally 

checked her FEGLI withholdings and noticed that her payroll office was no longer withholding 

for Option B. When she found out that she had cancelled her coverage with her open season 

election, Marcy contacted her personnel office and told them that she didn’t mean to do that. At 

this point it is too late for Marcy’s personnel office to reinstate her Option B coverage. Marcy 

can get Option B again only by waiting a year after the effective date of the cancellation and 

having a physical, by electing it during a subsequent open season, or by electing it within 60 

days of a life event. 

To correct an error as described above, have the employee complete a new FE-2004. Note in the 

remarks section that you are allowing the reinstatement of erroneously cancelled coverage as 

authorized in this BAL. 

Abby L. Block 

Deputy Associate Director 

 for Employee and Family Support Policy 

 Frank D. Titus 

 Assistant Director 

 for Insurance Services Programs 

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