Civil Service 

Retirement 

System 

Federal Employees’ 

Group Life 

Insurance Program 

Federal Employees 

Health Benefits 

Program 

Federal Employees 

Retirement 

System 

Federal Long 

Term Care 

 Insurance 

Program 

United States 

Office of 

Personnel Management 

The Federal Government’s Human Resources Agency

Retirement and Insurance Service 

Benefits Administration Letter 

Number: 02-209 Date: September 25, 2002 

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

Purpose 

The purpose of this Benefits Administration Letter (BAL) is to transmit new premiums and age 

bands under the Federal Employees’ Group Life Insurance (FEGLI) Program. 

New Premiums 

The Office of Personnel Management (OPM) periodically reviews the FEGLI premiums to 

determine whether circumstances require any changes. The last premium change was effective 

April 24, 1999. 

Because of generally lower mortality rates, OPM has decided to reduce the premium for Basic 

insurance and to reduce the premium for several of the Option B age bands. 

There are no changes to the Option A premiums or to the premiums for the existing Option C age 

bands. 

For the purpose of counseling retiring employees, please also note that the extra premium for the 

50% Reduction election for Basic insurance is increasing from $0.59 per $1,000 of coverage to 

$0.60 per $1,000 of coverage; the extra premium for the No Reduction election for Basic insurance 

is being reduced from $2.04 per $1,000 of coverage to $1.83 per $1,000 of coverage. 

New Age Bands 

In 1999, OPM announced new age bands for Option B because of the opportunity for retiring 

employees to elect unreduced coverage. However, we did not put the new age bands and their 

premiums into place at that time. Because of concerns raised at the time regarding the cost of the 
2

premiums in these new age bands, we agreed to delay the implementation and to continue studying 

the issue before putting any new age bands into effect. We have studied the issue and believe that 

we do need additional age bands because of the increasing number of individuals with unreduced 

Option B coverage after age 65. We are, therefore, adding the following age bands for Option B: 

60-64, 65-69, 70-74, 75-79, and 80 and over. 

In 1999, when we postponed putting the new Option B age bands in place, we agreed that we would 

phase in the premiums for these new age bands over a three-year period. The attached premium 

tables reflect the first year’s premiums for the new Option B age bands. We will issue BALs in the 

fall of 2003 and 2004 announcing the premiums for these new age bands for 2004 and 2005 

respectively. 

We added new age bands and premiums for Option C in April 2000. After further study we have 

decided to add the following age bands for Option C because of the increasing number of 

individuals with unreduced coverage after age 65: 70-74, 75-79, and 80 and over. 

Effective Date 

The effective date for the new age bands and premiums is January 1, 2003. Payroll offices must 

apply the new premiums and age bands the first pay period beginning on or after that date. 

Publication 

OPM is publishing regulations removing the premiums from 5 CFR part 870. We are publishing 

the new premiums in a Federal Register notice. All premium changes in the future will be 

published in a Federal Register notice and communicated to agencies by means of a BAL. The 

premiums will be maintained on the FEGLI web site (www.opm.gov/insure/life). 

Payroll Office Notification 

OPM’s Financial Policy Staff will notify payroll offices of the new age bands and premiums 

through a BAL in the 300 series. 

 

 Abby L. Block 

 Assistant Director 

 for Insurance Programs 

Attachment 
3

FEGLI BIWEEKLY AND MONTHLY PREMIUMS – EFFECTIVE JANUARY 1, 2003 

Basic insurance, per $1,000 of coverage 

Biweekly Monthly 

Employee Withholding $0.1500 $0.3250 

Government Contribution $0.0750 $0.1625 

Option A: No change 

Option B, per $1,000 of coverage 

Age Band Biweekly Monthly 

Under age 35 $0.03 $0.065 

Ages 35-39 $0.04 $0.087 

Ages 40-44 $0.06 $0.130 

Ages 45-49 $0.09 $0.195 

Ages 50-54 $0.14 $0.303 

Ages 55-59 $0.28 $0.607 

Ages 60-64 $0.60 $1.300 

Ages 65-69 $0.71 $1.538 

Ages 70-74 $0.87 $1.885 

Ages 75-79 $1.07 $2.318 

Ages 80 & Over $1.27 $2.752 
4

Option C, per multiple 

Age Band Biweekly Monthly 

Under age 35 $0.27 $0.59 

Ages 35-39 $0.34 $0.74 

Ages 40-44 $0.46 $1.00 

Ages 45-49 $0.60 $1.30 

Ages 50-54 $0.90 $1.95 

Ages 55-59 $1.45 $3.14 

Ages 60-64 $2.60 $5.63 

Ages 65-69 $3.00 $6.50 

Ages 70-74 $3.40 $7.37 

Ages 75-79 $4.50 $9.75 

Ages 80 & Over $6.00 $13.00