OPM Announce Changes in Life Insurance Premiums

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.

New Premiums
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.

Effective Date
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

5 thoughts on “OPM Announce Changes in Life Insurance Premiums

  1. Wait till they find out they owe all the new NTFT’s rebates because our value is based on our new designated less hours so you lost $80,000 in value! Yeah, sure your new premiums are lower but you’ve been paying the higher premiums on the higher amount for the last 10 or 20 years! So if you lost 9 hours or 25 percent then, you also should be getting your union dues lowered by 25 percent!

  2. Got a members whole life plan in the mail from the credit union.They want $35.75 a month for $10K coverage.

    It seems EVERTTHING! is going up but not are pay… WTF?

  3. I bought this FEGLI until I turned 55. The premium doubled at that time and that’s when I started paying attention to the premium schedule.Boy what an eye opener. Who can afford that in retirement?

  4. Can’t come up with round-trip tix to Wash DC? You can Occupy APWU HQ easily by filling out your PS 1188 today! Do it before the next round of dues increases and assessments coming round the bend brought to you by your union!

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