Federal Employees’ Group Life Insurance (FEGLI) Premiums are changing!

Did you carry your FEGLI coverage into retirement? Are life insurance premiums coming out of your annuity payment every month? If so, this change may apply to you.

As of January 1, 2016, premiums for many options and age brackets under the FEGLI program will change due to actuarial adjustments.

The new premium charts can be viewed at: https://www.opm.gov/retirement-services/special-notices/2016-fegli-premium-chang e.pdf.

You can reduce or cancel coverage at any time but annuitants cannot increase coverage, even during an open season. If you elect to reduce or cancel all or any part of your FEGLI coverage, that election is irrevocable.

Following is a summary of the effect on the various options you may be carrying:

Premiums for Basic coverage, which is your final salary rounded to the next thousand plus $2,000, are the same regardless of age but have three reduction schedules, one of which you chose at retirement. For Basic coverage with a 75% Reduction schedule, premium rates are not changing at this time, and your coverage remains free after age 65. However, if you elected a 50% Reduction or No Reduction schedule for your Basic coverage, those premiums are going up.

Option A is a straight $10,000 for most annuitants. Option A premium rates, computed for $10,000 of coverage, increase every five years up to age 65. At age 65, Option A is free and starts to reduce until it reaches 25% of its original value. Premium rates for all Option A age brackets up to age 59 are decreasing with this change. The final age bracket (60-64) is staying the same.

Option B is your final salary rounded to the next thousand times up to five multiples. Option B premium rates, computed per $1,000 of coverage, are decreasing for most age brackets. Premiums for age 34-and-under, 35-39 and 75-79 stay the same. Only 80-and-over premiums are going up.

Option C, Family, is $5,000 of coverage on your spouse and $2,500 on eligible children times up to 5 multiples. Option C premiums are per multiple with the same age brackets as Option B. Option C premium rate changes are variable, some up, some down, some staying the same.

For annuitants, the new premiums will first appear in your February 1, 2016 annuity payment, which covers January 1, 2016 to January 31, 2016.