Some Life Insurance Rates to Increase in January

OPM has announced a rare change to premiums in the FEGLI life insurance program that will be effective in January, with increases of about 8-10 percent affecting some retirees who carry their Basic coverage into retirement. Rates for Basic insurance for active employees are remaining unchanged. OPM will have an open season in September 2016, during which active employees, but not retirees, will be allowed to enroll if not already enrolled or to increase coverage (both employees and retirees can reduce or cancel existing coverage at any time). Choices made in that opportunity will be effective in October 2017. OPM said the adjustments were driven by claims experience in the program. The most recent open season was held in 2004 when some rates similarly changed for the same reason.