If you are a federal employee, you may be enrolled by Option B or C coverage under the Federal Employees’ Group Life Insurance program. If you are a retiree, some of you have retained that coverage. And most retirees still have their Basic insurance. If so, I have some news for you. Some of the premium amounts are changing. For employees, those changes will be reflected in their first pay check earned during January 2012; for retirees, in their February annuity payment.

OPM has completed a study of the FEGLI program. Based on this updated actuarial analysis of actual claims experience, OPM has determined that premium changes need to be made to Option B, Option C and post-retirement Basic. These changes are based on funding and claims experience within the FEGLI program and reflect updated mortality and claims rates from actual program experience within each category.

As a result, premiums for all Option B age bands, other than the oldest groups (ages 75-79 and ages 80 and over) will decrease. Premiums for Option C age bands under age 45 will also decrease. However, a rate increase is needed for Option C premiums for those ages 45 and over. Premiums for post-retirement Basic FEGLI will also increase slightly for those enrollees who elect the 50% Reduction and No Reduction. According to OPM, “These increases are necessary due to the experience of the group and are necessary to sufficiently fund the projected future increases.”

The complete set of 2012 premium rates for Option B, C and retiree Basic insurance are shown below.

Option B Premium per $1,000 of Insurance

Age Band Biweekly Monthly

Under 35 $0.02 $0.043

35–39 $0.03 $0.065

40–44 $0.05 $0.108

45–49 $0.08 $0.173

50–54 $0.13 $0.282

55–59 $0.23 $0.498

60–64 $0.52 $1.127

65-69 $0.62 $1.343

70-74 $1.14 $2.470

75-79 $1.80 $3.900

80 and over $2.40 $5.200

Option C Premium per Multiple of Insurance

Age Band Biweekly Monthly

Under 35 $0.22 $0.48

35–39 $0.29 $0.63

40–44 $0.42 $0.91

45–49 $0.63 $1.37

50–54 $0.94 $2.04

55–59 $1.52 $3.29

60–64 $2.70 $5.85

65-69 $3.14 $6.80

70-74 $3.60 $7.80

75-79 $4.80 $10.40

80 and over $6.60 $14.30

Annuitant Basic Premium per $1,000 of Insurance

Election Monthly withholding for Monthly withholding for

each $1,000 of your BIA each $1,000 of your BIA

before age 65 after age 65

75% Reduction $0.3250 No cost

50% Reduction $0.9650 $0.64

No Reduction $2.2650 $1.94

To compare these rates with the ones in effect in 2011, go to www.opm.gov/insure/life/rates/em-rates.asp (for employees) and www.opm.gov/insure/life/rates/an-rates.asp