Federal Employees' Group Life Insurance (FEGLI) Handbook

1 Federal Employees Group Life Insurance (FEGLI)Uni t ed Stat eS Office Of PerSOnnel ManageMen Office of Personnel Management 2 Table of Contents INTRODUCTION .. 6 WHAT IS FEGLI? .. 6 FEGLI AT A GLANCE .. 6 Purpose .. 6 Law and Regulations .. 6 Types of Insurance .. 6 Basic Insurance .. 7 Optional Insurance .. 7 Accidental Death & Dismemberment Benefits .. 7 Initial Election .. 8 Effective Date .. 8 Waiver/Cancellation of Insurance .. 8 Cancellation of Waiver by Providing Medical Information .. 8 OPM RESPONSIBILITIES .. 15 OFEGLI RESPONSIBILITIES .. 16 AGENCY RESPONSIBILITIES .. 16 Headquarters Insurance Officer.

2 16 Field Installation Responsibilities .. 16 Counseling .. 16 Other Agency Responsibilities .. 17 Life Insurance Questions .. 17 INSURED INDIVIDUAL RESPONSIBILITIES .. 17 Responsibilities .. 17 Life Insurance Questions .. 18 CORRECTION OF ERRORS .. 18 INCONTESTABILITY .. 19 INITIAL DECISION AND RECONSIDERATION .. 21 HISTORICAL INFORMATION .. 23 TYPES AND AMOUNTS OF Insurance .. 25 KIND OF 25 TYPES OF Insurance .. 25 AMOUNT OF BASIC Insurance .. 25 ANNUAL RATES OF BASIC PAY .. 27 Office of Personnel Management 3 AMOUNT OF OPTIONAL Insurance .. 31 CONCURRENT EMPLOYMENT .. 33 CHANGES IN AMOUNT OF Insurance .

3 34 ACCIDENTAL DEATH AND DISMEMBERMENT (AD&D) 35 HISTORICAL INFORMATION .. 38 ELIGIBILITY FOR LIFE Insurance .. 40 EMPLOYEES EXCLUDED FROM COVERAGE .. 40 ELIGIBLE FAMILY MEMBERS UNDER OPTION 42 FOSTER CHILD .. 44 CHILD INCAPABLE OF SELF-SUPPORT .. 48 HISTORICAL INFORMATION .. 50 COST OF Insurance .. 51 COST OF BASIC 51 WITHHOLDINGS FOR BASIC Insurance .. 51 GOVERNMENT CONTRIBUTION FOR BASIC Insurance .. 53 COST OF OPTIONAL Insurance .. 54 WITHHOLDINGS FOR OPTIONAL Insurance .. 55 MISCELLANEOUS WITHHOLDING AND CONTRIBUTION PROVISIONS .. 58 TRANSFERRING TO A DIFFERENT PAYROLL OFFICE .. 61 DIRECT PREMIUM PAYMENTS.

4 64 REMITTANCE TO OPM .. 70 ADJUSTING ERRORS .. 70 HISTORICAL INFORMATION .. 72 COVERAGE .. 74 INTRODUCTION .. 74 BASIC Insurance : AUTOMATIC COVERAGE .. 74 OPTIONAL Insurance : INITIAL ELECTION .. 75 WAIVER/CANCELLATION (REDUCTION) OF Insurance .. 76 CANCELING A WAIVER AND ELECTING COVERAGE .. 80 PROVIDING SATISFACTORY MEDICAL INFORMATION .. 82 LIFE EVENTS .. 85 OPEN SEASONS .. 89 BREAKS IN SERVICE .. 91 EMPLOYING OFFICE RESPONSIBILITIES .. 91 NONPAY STATUS .. 93 INCONTESTABILITY .. 98 Office of Personnel Management 4 CORRECTION OF ERRORS .. 99 HISTORICAL 100 TERMINATION AND CONVERSION .. 104 DIFFERENCE BETWEEN CANCELLATION AND TERMINATION.

5 104 TERMINATION OF EMPLOYEES BASIC Insurance .. 104 TERMINATION OF EMPLOYEES OPTIONAL Insurance .. 106 CONCURRENT EMPLOYMENT .. 106 31-DAY EXTENSION OF COVERAGE .. 107 CONVERSION OF Insurance .. 107 CONVERSION FOR FAMILY MEMBERS .. 109 EMPLOYING OFFICE RESPONSIBILITIES .. 110 TIME LIMIT ON CONVERSION .. 111 TERMINATION OF ANNUITANTS AND COMPENSATIONERS Insurance .. 113 HISTORICAL INFORMATION .. 113 ANNUITANTS AND COMPENSATIONERS .. 114 ELIGIBILITY FOR LIFE Insurance .. 114 QUALIFYING RETIREMENT 117 AMOUNT OF LIFE 119 POST- 65 REDUCTION IN THE AMOUNT OF COVERAGE BASIC Insurance .. 119 POST-65 REDUCTION IN THE AMOUNT OF COVERAGE OPTIONAL 123 PROCEDURES FOR RETIRING EMPLOYEES.

6 127 WHILE RETIREMENT CLAIM IS PENDING .. 131 REEMPLOYED ANNUITANTS .. 131 PROCEDURES FOR COMPENSATIONERS .. 137 TERMINATION AND REINSTATEMENT .. 141 HISTORICAL INFORMATION .. 142 ORDER OF PRECEDENCE AND PAYMENT OF BENEFITS .. 144 DESIGNATION OF BENEFICIARY .. 145 DESIGNATING A TRUST .. 152 CHANGING OR CANCELING DESIGNATIONS .. 155 IF YOUR BENEFICIARY IS A MINOR .. 156 ANNUITANTS AND COMPENSATIONERS .. 157 COURT ORDERS .. 158 HISTORICAL INFORMATION .. 159 Office of Personnel Management 5 ASSIGNMENT .. 161 DEFINITION .. 161 REASONS FOR ASSIGNING .. 162 HOW TO MAKE AN ASSIGNMENT .. 163 AFTER ASSIGNMENT.

7 164 DESIGNATIONS OF BENEFICIARY .. 166 PAYMENT OF BENEFITS .. 166 VIATICAL SETTLEMENTS .. 167 EMPLOYING OFFICE RESPONSIBILITIES .. 169 ANNUITANTS AND COMPENSATIONERS .. 170 TERMINATION AND CONVERSION .. 172 HISTORICAL INFORMATION .. 172 LIVING BENEFITS .. 173 WHAT ARE LIVING BENEFITS? .. 173 ELECTION PROCEDURES .. 174 EFFECT OF A LIVING BENEFIT ELECTION .. 176 MISCELLANEOUS PROVISIONS .. 177 HISTORICAL INFORMATION .. 178 INFORMATION FOR CLAIMANTS .. 180 EMPLOYING OFFICE RESPONSIBILITIES .. 182 AMOUNT OF DEATH BENEFIT PAYABLE .. 183 TIMELY NOTICE AND FILING OF CLAIMS FOR ACCIDENTAL 184 PAYMENT OF CLAIMS.

8 185 PAYMENT TO A MINOR .. 186 QUESTIONS REGARDING CLAIMS .. 187 PHASED RETIREMENT .. 188 SF50 Equivalents of Insurance Codes .. 193 Table of Legislation Affecting FEGLI .. 195 Office of Personnel Management 6 INTRODUCTION WHAT IS FEGLI? The Federal Employees Group Life Insurance (FEGLI) Program is a life Insurance program for Federal and Postal employees and annuitants, authorized by law (Chapter 87 of Title 5, United States Code). The Office of Personnel Management (OPM) administers the Program and sets the premiums. The FEGLI regulations are in Title 5 of the Code of Federal Regulations, Part 870.

9 FEGLI is Group term life Insurance . It does not build up cash value. You cannot take a loan out against your FEGLI Insurance . OPM has a contract with the Metropolitan Life Insurance Company (MetLife) to provide this life Insurance . MetLife has an administrative office called the Office of Federal Employees Group Life Insurance (OFEGLI). OFEGLI is the contractor that adjudicates claims under the FEGLI Program. FEGLI AT A GLANCE Purpose This section provides a summary of the major features of the Federal Employees' Group Life Insurance (FEGLI) Program. This information is repeated in more detail in the individual chapters of this Handbook .

10 This section also provides links from the summary information to the individual chapter that provides more detailed information on each topic. Law and Regulations Public Law 83-598 authorized the creation of the FEGLI Program; the law governing the Program is found in Chapter 87 of Title 5, United States Code. FEGLI Program regulations are found in part 870 of Title 5, Code of Federal Regulations. Links to the law and regulations are on the FEGLI homepage at Types of Insurance There are two types of life Insurance under the FEGLI Program: Basic and Optional. Basic Insurance pays out your annual rate of basic pay upon death.