Retirement & Financial Planning Report

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Generally speaking, while federal employees may pay FEHB premiums with pre-tax money under the “premium conversion” arrangement, retirees may not. There is an exception for rehired annuitants, however.

All participants in premium conversion must have their FEHB premiums deducted from their pay as employees, not from their retirement annuities. In order to allow eligible reemployed annuitants an opportunity to participate in premium conversion, their FEHB enrollment must be transferred from their retirement system to their employing agency.

Reemployed annuitants enrolled in the FEHB as of the effective date of premium conversion automatically participate in premium conversion, provided they are employed in a position that conveys FEHB eligibility and by an agency covered by premium conversion. Agencies must deduct FEHB premiums on a pre-tax basis from the pay of these individuals unless they waive participation in premium conversion.

If you are rehired in a position that conveys eligibility for FEHB coverage, you may enroll in FEHB under the same terms as any newly hired employee. You will automatically participate in premium conversion unless you file a waiver.

Your participation in premium conversion ends on the last day of the last pay period as an employee. When you separate from active service, your FEHB enrollment must be transferred back from your employing agency to OPM or the appropriate retirement system.

FEHB Changes for 2021

2021 FEHB, FEDVIP Rates

Picking the Best FEHB Plan

Mistakes to Avoid When You Retire from a Federal Job

What Counts Toward the FEHB Five-Year Requirement

FERS Retirement Guide 2022