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

 Benefits Administration Letter

 

Number: 99-210 Date: April 29, 1999 

Subject: Federal Employees’ Group Life Insurance: Public Law 105-311- Portability 

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. One of these changes is a 3-

year demonstration project allowing the portability of

Option B.

________________________________________________

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

to provide information regarding portability.

______________________________________________________________________________

PORTABILITY

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What Is Portability? Portability is the ability to continue (or to “port”) coverage

that would otherwise terminate.

________________________________________________

When Does the Portability Portability becomes effective April 24, 1999.

Provision Go into Effect?

This means that employees who separate on or after April

24, 1999, and employees who complete 12 months in

nonpay status on or after April 24, 1999, will be able to port

their Option B coverage.

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What Coverage Can Be Only Option B can be ported. Basic insurance, and

Ported? Option A and Option C coverage cannot be ported.

________________________________________________

Who Is Eligible to Port There are 2 requirements for porting Option B coverage:

Option B?

• The employee’s FEGLI must be terminating due to

separation from service or completion of 12 months

in nonpay status, and

• The employee must meet the 5-year/first opportunity

requirement (i.e., the employee either must have had

the coverage for the 5 years immediately preceding

the separation or completion of 12 months in nonpay

status or must have had the coverage for the entire

time he/she was eligible, if that’s less than 5 years)

If the employee has assigned his/her coverage, it is the

assignee who has the right to port.

________________________________________________

Special Note Regarding Compensationers remain insured as employees until

Compensationers separation or the completion of 12 months in nonpay status. 

At the end of 12 months in nonpay status, a compensationer

can continue insurance as a compensationer if the individual

meets the 5-year/first opportunity requirement as of the date

he/she began receiving compensation. The 12 months in

nonpay status cannot be used to meet the 5-year/first

opportunity requirement.

If the compensationer doesn’t meet the 5-year/first

opportunity requirement, insurance normally terminates at

the end of the 12 months in nonpay status. However, those

12 months in nonpay status can be used to meet the 5-

year/first opportunity requirement for portability. If using

the 12 months in nonpay status does allow a

compensationer to meet the 5-year requirement, the

compensationer will be able to port Option B; other FEGLI

coverage will still terminate.

________________________________________________

How Much Option B A person can port the highest number of multiples that

Can a Person Port? meet the 5-year/first opportunity requirement.

A person can also choose to port a lesser number of

multiples.

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Can a Person Change the A person with ported coverage can reduce the number of

Amount of Option B That multiples, but he/she cannot increase the number of

He/She Ported? multiples.

An individual who wishes to reduce the number of multiples

can do so by writing to Metropolitan Life Insurance

Company (MetLife) at:

Metropolitan Life Insurance Company

Voluntary Benefits Group

Administrative Services

P.O. Box 2006

Aurora, IL 60507

The letter must include the full name of the insured, his/her

Social Security Number, and a phone number.

This action is a voluntary cancellation of those multiples and

may affect the amount of insurance the person will have if

he/she returns to Federal service.

If the insurance has been assigned, only the assignee can

cancel multiples.

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How Much Does the The cost of the ported Option B is the same as the cost of

Ported Option B Cost? Option B for active employees. There is also a $1.75 per

month administrative fee.

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Will Salary Changes Affect No. Unlike what happens for an active employee or an

the Amount of Coverage for employee during the first 12 months of nonpay status,

an Employee in Nonpay salary changes will have no effect on the amount of ported

Status? Option B coverage.

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Does the Ported Coverage No. Ported coverage works differently from the coverage

Reduce When the Person carried as an active employee.

Reaches Age 65?

Ported coverage reduces by 50% at the beginning of the 2nd

calendar month after the individual reaches age 70.

Ported coverage stops at the beginning of the 2nd calendar

month after the individual reaches age 80. The person will

then have the 31-day extension of coverage and right to

convert.

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What Happens to the When the coverage reduces to 50% at age 70, the

Premiums When the premium is also reduced. The individual will pay

Coverage Reduces at premiums only on the amount of coverage that is still in

Age 70? effect.

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What If the Person Is If the person is already 70 or older at the time he/she

Already 70 or Older ports Option B coverage, the 50% reduction will take 

When He/She Ports? place the 2nd month after the effective date of the ported

coverage.

If the person is already 80 or older, the ported coverage will

terminate the 2nd month after the effective date. Such an

employee may want to consider converting, instead of

porting, since the ported coverage would not last very long.

________________________________________________

What about Designations If an individual has a valid designation of beneficiary on

of Beneficiary? file at the time he/she ports Option B coverage, that

designation remains in effect.

Individuals with ported coverage may change designations

under the same rules that apply to active employees.

Persons with ported coverage may obtain the designation of

beneficiary form (SF 2823) from MetLife. They must file

their designations with MetLife at the address given earlier.

The SF 2823 is also available on the FEGLI web page:

www.opm.gov/insure/life.

________________________________________________

What about Court Orders? If the employing office received a valid court order on or

after July 22, 1998, that court order remains valid for the

ported coverage.

Anyone wishing to send in a court order after Option B has

been ported must send it to MetLife at the address given

earlier.

________________________________________________

What about Assignments? If the coverage was assigned before the employee separated

or completed 12 months in nonpay status, only the

assignee(s) can port the coverage. The assignment remains

in effect.

If an individual who has ported coverage wishes to make an

assignment, he/she may do so.
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Persons with ported coverage may obtain the assignment

form (RI 76-10) from MetLife. They must submit the form

to MetLife at the address given earlier.

The assignment form is also available on the FEGLI web

page.

________________________________________________

What Happens When the The 3-year demonstration project comes to an end in

Demonstration Project Is April 2002. At that time, if the project is not renewed or

Over in 3 Years? made permanent, MetLife will notify those who have ported

their coverage that the coverage is terminating. The

individuals will have the 31-day extension of coverage and

the opportunity to convert.

______________________________________________________________________________

PORTABILITY - APPLICATION AND PROCESSING PROCEDURES

________________________________________________

New Form Pending Currently, when an employee separates or completes 12

months in nonpay status, agencies must prepare an SF 2819

(Notice of Conversion Privilege) and SF 2821 (Agency

Certification of Insurance Status) and give them to the

employee (or assignee).

We are preparing a new form that will combine the

information from the SF 2819 and SF 2821 and will also

include information for portability. When the new form (the

SF 2825) is ready, we will send detailed instructions for

using it.

________________________________________________

What Does the Agency Have Until the new form is available, you must use the attached

to Do for Portability until Portability Notice. You must complete Part A of the 

the New Form is Ready? Portability Notice and give the Notice to all employees with

Option B whose coverage is terminating due to separation or

completion of 12 months in nonpay status.

________________________________________________

What Are the Time Frames Employees whose coverage is terminating and who want

for Porting Option B? to port their Option B coverage must apply within 31 days of

the terminating event. It is therefore critical that employing

offices give the Portability Notice to these employees

immediately. There is no extension beyond the 31-day

period for these individuals to make a portability election.

The same time frames also apply to assignees who wish to

port Option B coverage.
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________________________________________________

What Does the Individual If the employee (or the assignee) wants to port Option B

Have to Do with the coverage, he/she must complete Part B of the Portability

Portability Notice? Notice and send or give it to his/her employing office. 

The individual must also send a copy to MetLife, at the

address on the form.

________________________________________________

How Will It Be Determined The employing office must receive the Portability Notice

If the Portability Notice Is by the 36th day after the terminating event (or by the 50th

Submitted on Time? day after the terminating event, if the individual lives

overseas).

________________________________________________

 

What Must the Agency When you receive a Portability Notice, you must dateDo When It Receives a stamp it, so that the date of receipt can be verified.

Portability Notice? If you receive the Portability Notice on time, you must

complete an SF 2821 and send it to MetLife at the address

shown on the Notice. You must do this within 60 days of

the date you receive the Portability Notice. (Flag the OPF in

some way, in case the individual later returns to active

Federal service.) Along with the SF 2821, you must send all

designations, assignments, and court orders.

If you do not receive the Portability Notice on time, notify

the employee or former employee that he/she is not eligible

to port Option B. However, during the initial few weeks of

the demonstration project, we ask that you be lenient in

applying the application time frames.

________________________________________________

Does a Person with Ported Yes. A person who ports coverage has the same

Coverage Have Any reconsideration rights as anyone else with FEGLI

Reconsideration Rights? coverage. The person’s agency is responsible for doing

reconsiderations.

If the individual requests a reconsideration, the agency must

check with MetLife to find out whether they received their

copy of the Portability Notice on time. If MetLife received

the Portability Notice within the proper time frames, the

individual is eligible to port, even if the employing office

didn’t receive its copy on time.

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What Will MetLife Do When MetLife receives a Portability Notice, it will send the

When It Receives the individual a confirmation letter. Once MetLife has all the 
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Portability Notice? information it needs to process the portability application, it

will set up a file and send the individual a bill for the

premium payment. The individual must pay the bill within 31

days of receipt (45 days if the person lives overseas); if the

individual does not make payment, he/she will not have

coverage.

________________________________________________

When Does the Person’s If the individual meets the eligibility requirements, the 

Ported Coverage Become ported coverage continues directly from the coverage 

Effective? carried as an active employee. For example, if the

employee’s coverage would terminate 8/14/99, the ported

coverage would begin as of 8/15/99.

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What Happens If a Person If a person with ported coverage doesn’t make a premium 

with Ported Coverage Doesn’t payment by the due date, MetLife will send out a past due

Make the Premium Payments notice. If MetLife doesn’t receive the payment within 15

on Time? days of the date of the past due notice (29 days if the person

lives overseas), Option B coverage will be cancelled. There

is no reinstatement right.

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Does MetLife Have a Yes. Persons with questions regarding portability can call

Phone Number for Persons MetLife at 1-800-936-4792.

with Ported Coverage?

______________________________________________________________________________

RETURN TO ACTIVE FEDERAL SERVICE

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What Happens If a Person When an individual returns to Federal service, the agency

Who Ported Option B must call MetLife at 1-800-936-4792 to notify them of the 

Returns to Federal Service? individual’s return to service. (This is why the OPF must be

flagged, indicating that the employing office sent an SF 2821

to MetLife for ported coverage.)

If the individual does have ported coverage, MetLife will

terminate that coverage and send all designations,

assignments, and court orders to the employing office. 

MetLife will also notify the employing office if the person

reduced the number of multiples or if the insurance was

cancelled for nonpayment of premiums.

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What Option B Coverage The employee will get back the number of multiples of

Will the Person Get When Option B he/she had before the terminating event. (An

He/She Returns to Service? employee who has been separated from service at least 180
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days can also elect more FEGLI coverage, if he/she had

previously waived some coverage.)

EXCEPTIONS:

• A person who cancelled a multiple or multiples of

Option B coverage after porting will only get back

the number of multiples remaining. Whether or not

he/she can increase the number of multiples depends

on the person’s status as follows:

• A previously separated employee can increase

the number of multiples if it’s been at least

180 days since he/she cancelled the multiples.

• For an employee in nonpay status who was

never separated, the waiver of those multiples

remains in effect. The employee cannot make

an election of Option B coverage unless

he/she has a life event or a physical exam (or

unless there’s an open enrollment period).

• A person whose ported coverage was cancelled for

nonpayment of premiums will not get back any

Option B coverage. Whether or not he/she can elect

Option B coverage depends on the person’s status as

follows:

• A previously separated employee can make an

election of Option B coverage if it’s been at

least 180 days since the ported coverage was

cancelled.

• For an employee in nonpay status who was

never separated, the waiver of coverage

remains in effect. The employee cannot make

an election of Option B coverage unless

he/she has a life event or a physical exam (or

unless there’s an open enrollment period).

________________________________________________

What about Designations Designations and assignments are automatically cancelled

and Assignments? 31 days after the individual stops being insured. However, in

the case of an individual who ports his/her Option B, any

designation or assignment remains valid, since not all of the

insurance has terminated.

If an individual with ported coverage returns to Federal

service, any designation or assignment remains valid. FEGLI
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coverage obtained by returning to service is therefore subject

to the designation or assignment.

When it receives notification of an individual with ported

coverage returning to service, MetLife will send any

designations and assignments (and court orders) to the

employing office.

______________________________________________________________________________

Abby L. Block, Chief

Insurance Policy

 and Information Division

Attachment
PORTABILITY NOTICE

PART A - To Be Completed by Employing Agency

1. ___________________________ 2. __________________ 3. ______________________

 Name of Employee Date of Birth Social Security

Number

4. ______________________________ 5. _________________________________________

 Number of Multiples of Option B Amount of Coverage in Each Multiple (annual

 the Employee Has basic pay rounded up to the nearest thousand)

6. _______________________ 7. ___________________________________

 Date of Terminating Event Name of Agency Official to Contact

 for Additional Information

8. ____________________________ 9. ____________________________

 Phone Number of Agency Official Fax Number of Agency Official

 

______________________________________________________________________________

PART B - To Be Completed by Employee (or Assignee)

Have you assigned your life insurance? ________ Yes ________ No

NOTE: If you have assigned your insurance, you cannot port your Option B coverage. Only your

assignee has the right to port your coverage. Give this Portability Notice to your assignee(s).

I choose to port (continue) _________ multiples of the Option B coverage described above. I understand

that if I do not make premium payments on time, the coverage will be cancelled and cannot be reinstated.

_______________________________________________ _____________________

Signature of Employee (or Assignee, if applicable) Date

______________________________________________________________________________
INSTRUCTIONS TO EMPLOYEE/ASSIGNEE

If you want to port your Option B coverage, complete Part B of this Portability Notice and send or take it

to your agency employing office.

Also send a copy to:

Metropolitan Life Insurance Company

Voluntary Benefits Group

Administrative Services

P.O. Box 2006

Aurora, IL 60507

If you have received the SF 2821 (Agency Certification of Insurance Status), also send that form to

MetLife. If you have not received the SF 2821, do not delay in sending this Notice.

Your employing office must receive the Portability Notice within 36 calendar days from the date of the

terminating event shown in #6 on the previous page (50 days, if you live overseas). There are no

extensions to this deadline.

______________________________________________________________________________

COST

The cost of your ported Option B coverage is the same as what you’ve been paying as an employee, as

shown in the chart below.

1999 RATE CHART

Employee’s Age Monthly Cost per $1,000 of Coverage

Under 35 $0.065

35 through 39 $0.087

40 through 44 $0.130

45 through 49 $0.217

50 through 54 $0.325

55 through 59 $0.672

60 and over $1.517

For ported coverage there is also a $1.75 per month administrative fee.

If you have any questions concerning your ported coverage, you may call MetLife at 1-800-936-4792.