United States

Office of

Personnel Management

The Federal Government’s Human Resources Agency

Retirement and Insurance Service

Benefits Administration Letter

 

Number: 99-217 Date: October 15, 1999 

Subject: Federal Employees’ Group Life Insurance: Employees Who Complete 12

Months in Nonpay Status

Background

Federal employees are entitled to continue FEGLI coverage for up to 12 months while in nonpay

status. Employees are not required to pay premiums during this period, unless they are receiving

compensation from the Office of Workers’ Compensation Programs.

By law, FEGLI coverage terminates at the end of the 12-month period, whether or not the

employee separates from service.

The purpose of this Benefits Administration Letter (BAL) is to remind agencies of the actions

required at the end of an employee’s 12-month nonpay period.

Employees Who Are Not Receiving Compensation

The FEGLI coverage of an employee who completes 12 months in nonpay status terminates,

whether the agency takes any action or not. The failure of an employing office to issue the

appropriate notice does not allow the coverage to continue; however, it prevents the employee

from converting his/her coverage on a timely basis.

When an employee who is not receiving workers’ compensation completes 12 months in nonpay

status, the employing office must give him/her an SF 2819 (Notice of Conversion Privilege) and

an SF 2821 (Agency Certification of Insurance Status). If the employee has Option B coverage

and meets the five-year/all-opportunity requirement, you must also give him/her a Portability

Notice (see BAL 99-212 for copy of the notice). You must give the employee these forms

immediately at the end of the 12-month period, even if the employee remains on the agency’s

rolls.

Civil Service Federal Employees Federal Employees Federal Employees

Retirement Group Life Health Benefits Retirement

System Insurance Program System
Employees Who Are Receiving Compensation

An employee who is receiving workers’ compensation remains insured as an employee until

he/she separates or completes 12 months in nonpay status.

At the time of separation or completion of 12 months in nonpay status, the employee may be

eligible to continue FEGLI as a compensationer, if he/she met the five-year/all-opportunity

requirement as of the date compensation started. 

If the employee does not meet the requirement, follow the same procedures as for employees who

are not receiving compensation.

If the employee does meet the requirement for continuing FEGLI as a compensationer, you must

still give him/her the SF 2819 and prepare the SF 2821. In addition, you must have the employee

complete an SF 2818 (Continuation of Life Insurance Coverage) and an Option B and C Election

Notice (see BAL 99-209 for copy), if applicable. You must transfer the individual’s life insurance

to OPM. Again, you must do this immediately at the end of the 12-month period.

Importance

We appreciate your cooperation in providing prompt notification. Your assistance helps us to

administer the FEGLI Program efficiently. It also helps your employees (and their families) by

allowing them to continue or convert their life insurance coverage without delay.

______________________________________________________________________________

Abby L. Block, Chief

Insurance Policy

 and Information Division