Soon-to-Be Retirees Should Take Care

Since both active employees and retirees are eligible for the program, someone who gets caught in the timing trap still would be able to apply as a retiree. However, retirees are subject to much more extensive questioning about their health and lifestyle habits than are active employees, meaning that an individual who might pass underwriting as an active employee might fail it as a retiree. OPM says there are several other special considerations to bear in mind. First, if you apply as an employee and are involuntarily separated from your federal job (other than for gross misconduct) after your application is approved but before your coverage effective date, your coverage will still become effective. Also, if you apply as a qualified relative and the eligible person that you are related to either dies or is involuntarily separated from federal service after your application is approved but before your coverage effective date, your coverage will still become effective.