[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]
------------------------------------------------------------------------
                Age band                     Bi-Weekly        Monthly
------------------------------------------------------------------------
< 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
------------------------------------------------------------------------


                   Option B (per $1,000 of Insurance)
 [The premiums for compensationers who are paid every four weeks are two
                       times the biweekly premium]
------------------------------------------------------------------------
                Age band                     Bi-Weekly        Monthly
------------------------------------------------------------------------
< 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
------------------------------------------------------------------------


                  Option C (per Multiple of Insurance)
 [The premiums for compensationers who are paid every four weeks are two
                       times the biweekly premium]
------------------------------------------------------------------------
                Age band                     Bi-Weekly        Monthly
------------------------------------------------------------------------
< 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
------------------------------------------------------------------------


             Post-Retirement Basic Insurance for Annuitants
                 [Monthly rate per $1,000 of insurance]
------------------------------------------------------------------------
                                           Before age 65   After age 65
------------------------------------------------------------------------
75% Reduction...........................         $0.3250        No cost.
50% Reduction...........................          1.0350          $0.71.
No Reduction............................          2.4550          $2.13.
------------------------------------------------------------------------


           Post-Retirement Basic Insurance for Compensationers
         [Withholding every four weeks per $1,000 of insurance]
------------------------------------------------------------------------
                                           Before Age 65   After Age 65
------------------------------------------------------------------------
75% Reduction...........................           $0.30        No cost.
50% Reduction...........................            0.96          $0.66.

[[Page 47537]]

 
No Reduction............................            2.27          $1.97.
------------------------------------------------------------------------

    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