OPM Announces New FEGLI Premiums

By on January 13, 2016 in Human Resources, Pay & Benefits with 0 Comments

2016 FEGLI open season

As of January 1, 2016, premiums for many options and age brackets under the Federal Employees’ Group Life Insurance (FEGLI) program will change due to actuarial adjustments.

The tables below from the Office of Personnel Management delineate the new FEGLI premiums. This information is also available in PDF format.

Basic Premium per $1,000 of Insurance

The amount of Basic coverage at retirement is the Basic Insurance Amount (BIA), which is the final salary, rounded up to the next thousand (unless it is already an even thousand), plus $2000.

Election Monthly withholding for each $1,000 of your BIA
Old New
Basic $0.325 (until age 65) $0.325 (until age 65)
Basic Post Retirement Reduction
75% Reduction No cost No cost
50% Reduction $0.64 $0.71
No Reduction $1.94 $2.13

Monthly premiums for Basic life insurance do not change until age 65. At age 65, the Basic Premium reduces to zero. If 75% Reduction is elected, the amount of Basic coverage reduces by 2% per month starting at age 65 (or at retirement if later) until it reaches 25% of its original value, at which level it will remain for life with no further cost to the annuitant. Basic Post Retirement Reduction premiums apply if 50% or No Reduction is elected, and continue for life unless the annuitant switches to 75% Reduction.

Option A

Option A is $10,000 of coverage for most individuals at retirement.

Age Band Old Monthly New Monthly
Under 35 $0.65 $0.43
35–39 $0.87 $0.65
40–44 $1.30 $0.87
45–49 $1.95 $1.52
50–54 $3.03 $2.38
55–59 $5.85 $4.33
60-64 $13.00 $13.00
65+ $0 $0

After age 65 (or retirement if later), Option A is free and starts to reduce 2% per month until it reaches 25% of its original value. There is no reduction election available for Option A.

Option B (Premium per $1,000 of Insurance)

Option B is up to five multiples of the final salary rounded up to the next thousand, unless it is already an even thousand.

Age Band Old Monthly New Monthly
Under 35 $0.043 $0.043
35–39 $0.065 $0.065
40–44 $0.108 $0.087
45–49 $0.173 $0.152
50–54 $0.282 $0.238
55–59 $0.498 $0.433
60–64 $1.127 $0.953
65-69* $1.343 $1.170
70-74* $2.470 $2.080
75-79* $3.900 $3.900
80 and over* $5.200 $5.720

*The annuitant can elect No Reduction for some or all Option B multiples. Premiums listed here for age 65 and over are for No Reduction. Multiples for which Full Reduction is elected are free after age 65. Starting at age 65, Full Reduction multiples reduce in value by 2% per month until they reach zero.

Option C (Premium per multiple)

Option C is Family coverage: up to five multiples of $5,000 on the annuitant’s spouse and $2,500 on each eligible child.

Age Band Old Monthly New Monthly
Under 35 $0.48 $0.48
35–39 $0.63 $0.59
40–44 $0.91 $0.89
45–49 $1.37 $1.28
50–54 $2.04 $1.99
55–59 $3.29 $3.21
60–64 $5.85 $5.85
65-69* $6.80 $6.80
70-74* $7.80 $8.30
75-79* $10.40 $11.40
80 and over* $14.30 $15.60

*The annuitant can elect No Reduction for some or all Option C multiples. Premiums listed here for age 65 and over are for No Reduction. Multiples for which Full Reduction is elected are free after age 65. Starting at age 65, Full Reduction multiples reduce in value by 2% per month until they reach zero.

© 2016 Ian Smith. All rights reserved. This article may not be reproduced without express written consent from Ian Smith.

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Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce. Ian also has a background in web development and does the technical work for the FedSmith.com web site and its sibling sites.

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