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2013 COLA Update

Federal retirees in the CSRS and FERS retirement systems will receive a COLA increase of 1.5% percent in 2014. Complete COLA information is available on this site. Active fedeal employee's pay will increase 1% in 2014. 

Retiree JOB Opportunities

Many job opportunities are available for federal retirees − and those planning to retire soon − to earn additional income in retirement. Our Jobs Board has updated listings targeted to federal retirees. Many companies seek out retired federal employees due to their government experience and contacts. You can also explore high paying opportunities for those that hold current Security Clearances.  

   

 

FEGLI INSURANCE

 
 

Federal Employees Group Life Insurance (FEGLI) Options

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FEGLI MENU

Annuity Assistance 

FEGLI Coverage

 

 

Federal Employees Group Life Insurance (FEGLI) provides group term life insurance. The term policies don't build cash or paid-up value. FEGLI coverage consists of Basic life insurance with several options. In addition to the Basic, there are three forms of Optional insurance available that can be elected. You must carry Basic insurance to elect any of the three options. Unlike Basic, enrollment the optional insurance is voluntary -- you must apply for and selct the options you desire. Evaluate your insurance needs to determine how much coverage to maintain when you retire.

Government sahres the cost of Basic insurance with you. The Government pays 1/3 and You pay 2/3 of the total cost. Your Basic insurance isn't affected by your age. However, you must pay the total cost of any Optional insurance that you elect  and the cost determined by your age.

The Office of Federal Employees' Group Life Insurance (OFEGLI), a private entity under contract with the Federal Government, processes and pays claims under the FEGLI Program. Beneficiaries must submit a claim to the OFEGLI to collect on the policy. Survivors can call them at 1-800-633-4542 to follow-up on submitted claims. See the Survivor's page for additional reporting procedures.

The annuitant costs for all options are listed on our Annuitant's FEGLI Rate page. Current employee rates are listed separately. You can elect to keep full coverage, 50% reduction or 75% reduction. The reductions don't start until you reach age 65 and with the 75% reduction you pay nothing from age 65 on. The SF-2801 form also lists everything you will need to know before making your selection.

I elected the 75% reduction when I retired. When I turn 65 I pay nothing and my coverage decreases to 25% of my full coverage over a period of approximately 2 years. I had additional private sector coverage and between the FEGLI reduced amount and my private insurance there will be sufficient coverage for my family's needs. 
Dennis V. Damp, Retired FAA

Before you make an election I suggest that you review your estate first. An excellent resource for this is  "Plan Your Estate." This book will help you evaluate your personal situation and this evaluation will help you determine how much insurance you will need in retirement. 

CAUTION - Common-law & Same-sex Marriage Beneficiary Issues
FEGLI does not recognize common-law marriages when distributing funds according to the standard order of precedence in 5 U.S.C. 8705(a).
 
An employee who wants to leave FEGLI benefits to a same-sex partner, common-law spouse, or other person may complete a Standard Form 2823, Designation of Beneficiary. In block B the employee may name that person as beneficiary.

FEGLI Living Benefit Option

 

We all hope we will never need to use this option but if you do you can elect to receive a lump sum FEGLI insurance payout if you are diagnosed to be terminally ill and have a documented medical prognosis showing a life expectancy of no more than nine months.  Employees, annuitants, or compensationers enrolled in the FEGLI Program are eligible to elect a Living Benefit.

Employees can choose a full or partial (a multiple of $1,000) Living Benefit while annuitants and compensationers are limited to electing a full Living Benefit.  Living Benefits are equal to the Basic Life insurance amount, plus any extra benefit for persons under age 45, that would be in effect nine months after the date of the Office of Federal Employees' Group Life Insurance (OFEGLI) receives a completed claim for Living Benefits form.  The OFEGLI is a private entity that has a contract with the Federal Government to process and pays claims under this program.  

If you assigned your life insurance policy, you cannot elect a Living Benefit. Living Benefit payments are reduced by 4.9% to make up for lost earnings to the Life Insurance Fund because of the early payment of benefits. The election of a Living Benefit has no effect on the amount of any optional life insurance that you now carry and premiums for any optional insurance must still be paid. You must contact OFEGLI at 1-800-633-4542 to obtain the form to elect Living Benefits (Form FE-8). This form is not available from your human resources office or the Office of Personnel Management (OPM). The customer service representative will process your claim over the phone and send you the FE-8 form to complete.

 

How to Cancel Basic or Optional Life Insurance Coverage

 

 

Federal retirees, unless they have assigned their life insurance, may cancel Basic or Optional life insurance coverage at any time. Any cancellation or reduction of life insurance coverage must be in writing and have an original signature by the insured retiree. Be sure to include your retirement claim number (CSA number) or social security number and specify what action you want taken.

Please note that you cannot increase your coverage after retirement, or reinstate any coverage that you cancel.

Write to: U.S. Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA 16017-0045 The FEGLI election form is usually for employees, but I would complete it and send it with your written request for the reduction. http://www.opm.gov/forms/pdf_fill/sf2817.pdf

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