The increases in FEGLI rates for 2005 will be the last of the previously
announced three-step set of increases that also caused certain rates to go
up at higher ages in January 2003 and 2004. The Office of Personnel
Management says the changes reflect the higher claims rates being
experienced in FEGLI optional coverage at higher ages, due to a 1998 law
allowing older enrollees to keep their coverage without suffering the prior
automatic reduction after age 65. They are not related to the FEGLI open
season that OPM conducted in September of this year. Elections of higher
coverage that were made during that open season will be effective in
September 2005.
