Effect on Retirees Differs Somewhat

Retirees pay for FEGLI coverage at the same overall rate as do active employees, with the difference that retirees pay premiums monthly rather than biweekly. Thus, premium rates for retirees will change in equivalent amounts. However, actual premiums for retirees depend on elections they make at retirement. Option A premiums shut off and coverage automatically begins to reduce at age 65 but retirees can elect to have their basic, Option B and Option C insurance either reduced or kept at the full amount they had at retirement. Currently, retirees age 60 and over pay $1.517 monthly per $1,000 of Option B coverage that they retain. Under the new system, those age 60-64 will pay $1.30, those age 65-69 will pay $1.538, those age 70-74 will pay $1.885, those age 75-79 will pay $2.318 and those age 80 and over will pay $2.752. Under Option C, those age 70 and over currently pay $7.37 per month per multiple retained. Under the new policy, those age 70-74 will pay $7.37 while those age 75-79 will pay $9.75 and those age 80 and over will pay $13.