[Federal Register Volume 76, Number 219 (Monday, November 14, 2011)]
[Notices]
[Pages 70510-70512]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-29285]


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OFFICE OF PERSONNEL MANAGEMENT


Federal Employees' Group Life Insurance Program: New Federal 
Employees' Group Life Insurance (FEGLI) Premiums

AGENCY: Office of Personnel Management.

ACTION: Notice.

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SUMMARY: The Office of Personnel Management (OPM) is announcing changes 
in premiums for certain Federal

[[Page 70511]]

Employees' Group Life Insurance (FEGLI) categories in accordance with 
sections 870.401(a)(2) and 870.402(a)(3) of title 5 of the Code of 
Federal Regulations. These include changes to premiums for Option B 
(most age bands), Option C (all age bands), and Post-Retirement Basic 
Insurance. These rates will be effective the first pay period beginning 
on or after January 1, 2012.

DATES: Effective Date: January 1, 2012.

FOR FURTHER INFORMATION CONTACT: Marguerite Martel, 
marguerite.martel@opm.gov, (202) 606-0004.

SUPPLEMENTARY INFORMATION: This notice announces changes to FEGLI 
Option B (most age bands), Option C (all age bands) and Post-Retirement 
Basic Insurance. The last premium change for some age categories of 
Option B and Option C and Post-Retirement Basic insurances was on the 
first pay period beginning on or after January 1, 2003 (Option B and 
Option C coverages had a three-year phase-in of premium changes ending 
in January 2005). Those changes coincided with the implementation of 
the Federal Employees' Life Insurance Improvement Act, Public Law 105-
311, (112 Stat. 2950) which provided expanded coverage choices for 
employees, retirees, and compensationers with Option B and Option C 
coverage past age 65.
    The premiums in the FEGLI Program represent estimates of premium 
income necessary to pay future expected benefits costs. The rates for 
all coverage categories are specific to the experience of the FEGLI 
group and are not based on mortality rates within the general 
population. Actuarial analysis of changing mortality rates makes 
periodic premium adjustments necessary.
    Accordingly, OPM has completed a study of funding and claims 
experience within the FEGLI Program. Based on this updated actuarial 
analysis of actual claims experience, OPM has determined that changes 
are required to Option B, Option C and Post-Retirement Basic premiums. 
These changes reflect updated mortality and claims rates from actual 
program experience within each FEGLI category. The legislative 
structure of the FEGLI Program assumes that we set premiums for each 
age band independently of the other bands, so that each age band is 
financially self-supporting.
    Based on updated experience, premiums for all Option B age bands, 
other than the oldest groups (ages 75-79 and ages 80 and over), will 
decrease. Premiums for Option C age bands under age 45 will also 
decrease. However, a rate increase is needed for Option C premiums for 
those ages 45 and over. Premiums for Post-Retirement Basic FEGLI will 
also increase slightly for those enrollees who elect the 50% Reduction 
and No Reduction. These increases are necessary due to the experience 
of the group and are necessary to sufficiently fund the projected 
future increases.
    We will issue guidance to all agencies for the purpose of 
counseling employees and we will notify affected annuitants directly 
via OPM's Office of Retirement Services. The FEGLI premium rates will 
be maintained on the FEGLI Web site http://www.opm.gov/insure/life.
    The new FEGLI premium rates for Option B, Option C and the Post-
Retirement Basic Option are as follows:

                Option B Premium per $1,000 of Insurance
------------------------------------------------------------------------
                     Age band                        Biweekly   Monthly
------------------------------------------------------------------------
Under 35..........................................      $0.02     $0.043
35-39.............................................       0.03      0.065
40-44.............................................       0.05      0.108
45-49.............................................       0.08      0.173
50-54.............................................       0.13      0.282
55-59.............................................       0.23      0.498
60-64.............................................       0.52      1.127
65-69.............................................       0.62      1.343
70-74.............................................       1.14      2.470
75-79.............................................       1.80      3.900
80 and over.......................................       2.40      5.200
------------------------------------------------------------------------

The premiums for compensationers who are paid every four weeks are two 
times the biweekly premium.

               Option C Premium per Multiple of Insurance
------------------------------------------------------------------------
                     Age band                        Biweekly   Monthly
------------------------------------------------------------------------
Under 35..........................................      $0.22      $0.48
35-39.............................................       0.29       0.63
40-44.............................................       0.42       0.91
45-49.............................................       0.63       1.37
50-54.............................................       0.94       2.04
55-59.............................................       1.52       3.29
60-64.............................................       2.70       5.85
65-69.............................................       3.14       6.80
70-74.............................................       3.60       7.80
75-79.............................................       4.80      10.40
80 and over.......................................       6.60      14.30
------------------------------------------------------------------------

The premiums for compensationers who are paid every four weeks are two 
times the biweekly premium.

                                 Annuitant Basic Premium per $1,000 of Insurance
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                                                                Monthly withholding for  Monthly withholding for
                                                                each $1,000 of your BIA  each $1,000 of your BIA
                           Election                                before age 65  (in       after age 65  (in
                                                                        dollars)                 dollars)
----------------------------------------------------------------------------------------------------------------
75% Reduction.................................................                   0.3250                      (*)
50% Reduction.................................................                   0.9650                     0.64
No Reduction..................................................                   2.2650                     1.94
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\*\ No cost.


                              Compensationer Basic Premium per $1,000 of Insurance
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                                                                  Withholding every 4      Withholding every 4
                                                                 weeks for each $1,000    weeks for each $1,000
                           Election                              of your BIA before age   of your BIA after age
                                                                    65 (in dollars)          65 (in dollars)
----------------------------------------------------------------------------------------------------------------
75% Reduction.................................................                     0.30                      (*)
50% Reduction.................................................                     0.89                     0.59
No Reduction..................................................                     2.09                     1.79
----------------------------------------------------------------------------------------------------------------
\*\ No cost.


[[Page 70512]]

Premiums for other FEGLI coverages, including the Basic Employee 
premium and Option A (all age bands), will not change at this time. 
These rates will be effective the first pay period beginning on or 
after January 1, 2012.

U.S. Office of Personnel Management.
John Berry,
Director.
[FR Doc. 2011-29285 Filed 11-10-11; 8:45 am]
BILLING CODE 6325-63-P