Some FEGLI life insurance premiums will increase effective with the first full pay period after October 1, while others will decrease and others will remain unchanged, OPM has said in announcing the first revision to those rates since 2016.
The biweekly rate for Basic (coverage equal to salary rounded up to the next $1,000 plus $2,000) for employees is increasing from $.15 to $.16 per $1,000 of coverage. That rate is of the widest interest, since enrollees must have Basic to be eligible for any of the optional coverages. (Note: The Postal Service pays the full cost of Basic for its employees, but not for its retirees.)
Rates for Basic for retirees, which vary according to whether they keep the full amount or take a reduction over time of either 50 or 75 percent, also are increasing. For example, the “no reduction” rate for those age 65 and older from $2.13 to $2.25 per $1,000 monthly.
However, rates are generally decreasing slightly for optional coverage, especially at younger ages. For example, the cost to an employee for Option A (a flat $10,000 of insurance) is dropping by $.10 to $.20 biweekly for those ages 35-59, while staying unchanged for those younger or older.
In Option B (up to five multiples of salary rounded to the next $1,000), rates are falling by several cents per $1,000 biweekly for employees between 35 and 64, while remaining unchanged for those younger.
In Option C (up to five multiples of $5,000 of coverage on spouses and of $2,500 on children under age 22), biweekly rates are decreasing at all ages through 69, from $.02 to $.31 per multiple. In both Options B and C, rates are increasing at ages above those ranges, though.