The Office of Personnel Management (OPM) is announcing changes in premiums for certain Federal Employees’ Group Life Insurance (FEGLI) categories. These include changes to premiums for Option B (most age bands), Option C (all age bands), and Post-Retirement Basic Insurance (for annuitants only).
There will be no change in premiums for Basic Employee or Option A coverage.
OPM has completed a study of funding and claims experience within the FEGLI Program. Based on this updated actuarial analysis of actual claims experience, OPM has determined that changes are required to Option B, Option C, and Post-Retirement Basic premiums.
Experience in all Option B age groups, other than the oldest groups (ages 75-79 and 80 and over), shows we should make a slight decrease in premiums. We are reducing premiums for the following age bands for Option B: Under 35, 35-39, 40-44, 45-49, 50-54, 55-59, 60-64, 65-69, and 70-74. The last premium change to Option B was implemented in 2005.
We are also reducing Option C premiums for enrollees under age 45, and increasing premiums for age groups age 45 and over. We are decreasing premiums for the following age bands: Under 35, 35-39, and 40-44. We are increasing premiums for the following age bands: 45-49, 50-54, 55-59, 60-64, 65-69, 70-74, 75-79, and 80 and over. The last premium change to Option C was implemented in 2005.
The extra premium for Post-Retirement Basic FEGLI will increase for those enrollees who elected the 50% Reduction and No Reduction at retirement. The extra premium for the 50% Reduction election for Basic insurance is $0.64 per $1,000 of coverage; and the extra premium for the No Reduction election for Basic insurance is $1.94 per $1,000 of coverage. The last premium change to Post-Retirement Basic FEGLI was implemented in 2003.
The effective date for the new premiums is January 1, 2012. Payroll offices must apply the new premiums the first pay period beginning on or after that date.
Payroll Office Notification
OPM’s Financial Reporting and Analysis Staff will notify payroll offices of the new premiums through a BAL in the 300 series.
source: Office of Personnel Management