[Federal Register Volume 80, Number 152 (Friday, August 7, 2015)]
[Notices]
[Pages 47535-47537]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19398]
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OFFICE OF PERSONNEL MANAGEMENT
Federal Employees' Group Life Insurance Program; Premium Changes
and Open Season
AGENCY: U.S. Office of Personnel Management.
ACTION: Notice.
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SUMMARY: The Office of Personnel Management (OPM) is announcing an
upcoming FEGLI Open Season and changes in premium rates for certain
Federal 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 premium rates
for Option A (most age bands), Option B (most age bands), Option C
(most age bands), and Post-Retirement Basic Insurance. These rates will
be effective the first pay period beginning on or after January 1,
2016. The FEGLI Open Season will be held from September 1, 2016 through
September 30, 2016.
DATES: These rates will be effective the first pay period beginning on
or after January 1, 2016.
FOR FURTHER INFORMATION CONTACT: Delon Pinto, [email protected],
(202) 606-0004.
SUPPLEMENTARY INFORMATION: This notice announces an upcoming FEGLI Open
Season between September 1, 2016 and September 30, 2016 and also
announces changes to FEGLI Option A (most age bands), Option B (most
age bands), Option C (most age bands), and Post-Retirement Basic
Insurance.
Open Seasons are one method by which healthy individuals can be
attracted to join and reduce the risk profile of the program. Some less
healthy individuals may elect coverage during Open Seasons. To mitigate
this risk, the effective date for employees in active pay status who
make an Open Season election would be delayed one full year to October
1, 2017, subject to FEGLI law and regulation, including applicable pay
and duty status requirements.
FEGLI premium rates are assessed based on Program experience in
accordance with FEGLI statutes at 8711(b), 8714a(e), 8714b(e), and
8714c(e), and OPM's Annual FEGLI Rate Review Process. The premium rates
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.
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 A, Option B, Option C and Post-Retirement Basic Insurance
premiums. These changes reflect updated mortality and claims rates from
actual program experience within each FEGLI category.
[[Page 47536]]
The legislative structure of the FEGLI Program assumes that we set
premium rates for each age band independently of the other bands so
that each age band is financially self-supporting.
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 www.opm.gov/insure/life.
The new FEGLI premium rates for Option A, Option B, Option C and
the Post-Retirement Basic Option are as follows:
Option A (for $10,000 of Insurance)
[The premiums for compensationers who are paid every four weeks are two
times the biweekly premium]
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Age band Bi-Weekly Monthly
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< 35.................................... $0.20 $0.43
35-39................................... 0.30 0.65
40-44................................... 0.40 0.87
45-49................................... 0.70 1.52
50-54................................... 1.10 2.38
55-59................................... 2.00 4.33
60 +.................................... 6.00 13.00
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Option B (per $1,000 of Insurance)
[The premiums for compensationers who are paid every four weeks are two
times the biweekly premium]
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Age band Bi-Weekly Monthly
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< 35.................................... $0.02 $0.043
35-39................................... 0.03 0.065
40-44................................... 0.04 0.087
45-49................................... 0.07 0.152
50-54................................... 0.11 0.238
55-59................................... 0.20 0.433
60-64................................... 0.44 0.953
65-69................................... 0.54 1.170
70-74................................... 0.96 2.080
75-79................................... 1.80 3.900
80 +.................................... 2.64 5.720
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Option C (per Multiple of Insurance)
[The premiums for compensationers who are paid every four weeks are two
times the biweekly premium]
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Age band Bi-Weekly Monthly
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< 35.................................... $0.22 $0.48
35-39................................... 0.27 0.59
40-44................................... 0.41 0.89
45-49................................... 0.59 1.28
50-54................................... 0.92 1.99
55-59................................... 1.48 3.21
60-64................................... 2.70 5.85
65-69................................... 3.14 6.80
70-74................................... 3.83 8.30
75-79................................... 5.26 11.40
80 +.................................... 7.20 15.60
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Post-Retirement Basic Insurance for Annuitants
[Monthly rate per $1,000 of insurance]
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Before age 65 After age 65
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75% Reduction........................... $0.3250 No cost.
50% Reduction........................... 1.0350 $0.71.
No Reduction............................ 2.4550 $2.13.
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Post-Retirement Basic Insurance for Compensationers
[Withholding every four weeks per $1,000 of insurance]
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Before Age 65 After Age 65
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75% Reduction........................... $0.30 No cost.
50% Reduction........................... 0.96 $0.66.
[[Page 47537]]
No Reduction............................ 2.27 $1.97.
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Premium rates for Basic Employee insurance will not change at this
time. These rates will be effective the first pay period beginning on
or after January 1, 2016.
U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.
[FR Doc. 2015-19398 Filed 8-6-15; 8:45 am]
BILLING CODE 6325-38-P