Life Insurance Open Season Date: Mon, 19 Apr 1999 15:36:12 -0400 To: "USGS Employees" From: "Cindy S. Wylie" Subject: Life Insurance Open Season In Reply Refer To: Mail Stop 601 MEMORANDUM Supervisors, Managers, and Team Leaders: Please ensure that employees without access to email receive a copy of this message. To: All U.S. Geological Survey Employees From: Richard C. Williams Acting Personnel Officer Subject: Life Insurance Open Season An open enrollment period for the Federal Employees' Group Life Insurance (FEGLI) Program will be held from April 24, 1999, through June 30, 1999. The life insurance open season materials have not yet arrived in the Human Resources Office. Upon receipt, they will be distributed to all employees. Allowable Changes During this election period, you can increase your current coverage. If not enrolled, you may elect coverage during this open season period. An employee who takes no action during the open enrollment period will retain the same coverage. New Rates The Office of Personnel Management (OPM) periodically reviews the FEGLI rates to determine whether circumstances require any changes in premiums. The last premium change was effective January 1, 1993. Because of lower mortality rates in most age groups, OPM has decided to revise the FEGLI premiums. Premiums are being reduced for the Basic Insurance and in most age bands for the optional insurances. Changes in Option C (Family) Currently Option C, which is coverage on your eligible family members, was limited to $5000 for your spouse and $2500 for each eligible child. You can now elect up to 5 multiples of those amounts, making the maximum amounts available $25,000 for your spouse and $12,500 for each eligible child. You have to elect the same number of multiples for each family member. In addition, separating employees or those receiving regular workers' compensation payments may elect to continue Option C on an unreduced basis by continuing to pay premiums after age 65. New Age Bands The "age band" is the point at which the life insurance premium increases due to the employee's age. Previously, when the employee's age fell into the next age band or group, the increase in premiums was not reflected for the new age band until the January following the employee's birthday. Based on the latest FEGLI regulation, this has been changed. Now, when an employee has a birthday that moves him/her to another age band, the premiums for the new age band become effective the pay period following the pay period in which the birthday occurs. In addition, the recent legislation has established new age bands. The previous age band of "60 and over" has been replaced by 3 age bands: 60-64; 65-69; and 70 and over. This is the result of allowing retiring employees to elect unreduced Options B and C after retirement. Effective Date of Open Season Change Coverage elected during the open season will become effective the first pay period beginning on or after April 23, 2000. You have to be in a pay and duty status during the pay period before the coverage becomes effective. You do not begin paying premiums for your new coverage until it goes into effect. If you transfer to another agency prior to the effective date of your open season change, that agency will process your change in coverage. If you retire prior to the effective date of your election, the old coverage will be carried into retirement. Continuing Life Insurance Into Retirement In order to continue FEGLI coverage when you retire, you must retire on an immediate annuity and you must have had the coverage for the 5 years of service prior to retirement. If you do not have the coverage for 5 years, you can continue it if you have had it since your first opportunity to enroll. Because the increased multiples of Option C coverage were not available until this open season, this open enrollment period is considered your first opportunity to elect them. Therefore, if you elect increased multiples of Option C and retire anytime after those multiples go into effect, you will be eligible to continue the coverage into retirement, as long as you meet the 5-year requirement for your previous Option C coverage. How To Make An Open Season Change If you decide to make a change during the open season enrollment period, you must complete a special FEGLI 99 Open Enrollment Election Form (RI 76-27) which is available from your servicing personnel office or from FEGLI's website at www.opm.gov/insure/life. When completing the form, you must indicate ALL coverage that you want, not just the new coverage. The form should be returned to your servicing personnel office for processing. Life insurance open season changes cannot be made through Employee Express. Information regarding this open season is available from your servicing personnel office. OPM has also established an open enrollment hotline at 202-606-0163.