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By: FEDweek StaffGenerally, federal retirees can only decrease, terminate or convert to a private policy their Federal Employees Group Life Insurance—that is, they cannot increase their coverage. However, there are special rules for rehired annuitants.
If your annuity stops upon reemployment, your insurance as an annuitant stops without a right to convert to an individual policy. You acquire life insurance coverage as an employee under the same conditions as any other employee who is rehired in the federal service. For details, ask your employing office for the publication Federal Employees’ Group Life Insurance, RI76-21, which describes the FEGLI Program.
If your annuity continues after you are reemployed, you retain the life insurance you have as a retiree. However, if the type of appointment you have makes you eligible for FEGLI coverage as an employee, Basic life insurance, the Standard Optional insurance, and the Family Optional insurance are suspended. They will be resumed at the same rate when the reemployment ends, except for any applicable reductions that normally begin at age 65.
During your reemployment you will automatically get Basic life insurance as an employee if the type of appointment you have makes you eligible for coverage. You may also elect any optional coverage unless an uncancelled waiver is still in effect. Withholding of premiums will be made from your pay. The cost of Additional Optional insurance, if you have it, will continue to be withheld from your annuity payment unless you request that it also be suspended so that you can have Additional Optional insurance as an employee.
If you choose to have Additional Optional insurance as an employee, you will be subject to the same conditions as other employees who are rehired. Ask your employing office for the publication Federal Employees’ Group Life Insurance, RI 76-21, which describes the FEGLI program.
Note: If you have participated in a “health savings account,” eligibility will continue under certain conditions.
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