If you have FLTCIP long-term care insurance you can continue it on separation whether you are eligible for retirement or not. Image: Jeff McCollough/Shutterstock.com
By: FEDweek StaffAs a rule, the large majority of federal employees are eligible to carry their FEHB health insurance and FEGLI life insurance coverage into retirement. But there always are exceptions.
First, a review of the rules. You can continue those forms of insurance if you are 1) currently enrolled, 2) have been enrolled for at least five years or from your earliest opportunity to enroll, and 3) are retiring on an immediate annuity.
While there is an automatic waiver of the FEHB five-year rule if you are accepting an offer of early retirement, no waiver of that rule is possible for FEGLI. Nor are waivers of the “currently enrolled” or “retiring on an immediate annuity” requirements available under current law for either program.
If you aren’t eligible to carry your FEHB and/or FEGLI coverage into retirement:
Under the FEHB program, you’ll be given a 31-day extension of coverage at no cost to you. After that you can drop your coverage, covert to an individual contract or request Temporary Continuation of Coverage. TCC will let you keep your FEHB coverage for up to 18 months. However, you’ll have to pay the full premiums plus 2 percent to cover administrative costs.
Under the FEGLI program, you’ll be granted the same 31-day extension of coverage that’s available in the FEHB program. However, if you aren’t eligible to continue your FEGLI coverage in retirement, your choices are limited. You can drop the coverage or convert all or part of your insurance into a private policy at your own expense.
The rules are simpler under the other two insurance programs. If you have FLTCIP long-term care insurance you can continue it on separation whether you are eligible for retirement or not, as long as you continue to pay premiums. As a retiree you can have the premiums withheld from your annuity (if you separate before eligibility for retirement, you can arrange to pay the premiums directly).
Under the FEDVIP vision-dental insurance plan, all retirees can continue coverage – there is no five-year rule. Those who separate without eligibility for retirement cannot continue coverage, although those who retire on a FERS “minimum retirement age with 10 years of service” annuity can reenroll in FEDVIP when they start receiving their annuity.
There also is no comparable policy under the FLTCIP long-term care insurance program. If you are currently enrolled, you can keep that coverage after retirement and the program’s policies allow new enrollments after retirement, as well. However, through 2024 that program is not accepting new enrollments of either current employees or retirees.
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See also,
Legal: How to Challenge a Federal Reduction in Force (RIF) in 2025
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