Basic Life
Life Insurance Coverage
Basic Insurance Amount: Coverage equal to the greater of (a) your
actual rate of annual basic pay (rounded up tc next $1,000) plus
$2,000 or (b) $10,000. The maximum Basic Insurance Amount is the
actual rate of annual basic pay payable for positions at Level 11
of the Executive Schedule under section 5313 of title 5, United
States Code (rounded up to next $1,000) plus $2,000.
If you are a part-time employee, your annual basic pay for life
insurance purposes is the basic pay applicable to your tour of
duty in a 52-week workyear. For example, if the annual salary for
your position is $21,906 per year but you are employed half-time,
your annual basic pay for insurance purposes would be $10,953.
You may use the work table below to compute your Basic
Insurance Amount.
Work Table
Line 1 Your current actual rate of annual
basic pay $
Line 2 If not an even thousand, round up
to next thousand $
Line 3 Add $2,000 + $2,000
Line 4 Your Basic Insurance Amount
(line 2 plus 3) $
Extra Benefit for employees under age 45: This Extra Benefit
doubles the amount of life insurance payable if you are age 35 or
younger. Beginning on your 36th birthday, the Extra Benefit
decreases 10% each year until, at age 45, there is no Extra
Benefit.
To determine the total amount of Basic Life Insurance, including
the Extra Benefit, multiply your Basic Insurance Amount by the
Age Multiplication Factor shown below:
Your Age at Death The Age Multiplication Factor Is
35 or under 2.0
36 1.9
37 1.8
38 1.7
39 1.6
40 1.5
Your Age at Death The Age Multiplication Factor Is
41 1.4
42 1.3
43 1.2
44 1.1
45 and over 1.0
You may use the work table below to determine your
total amount of Basic Life insurance (which includes the
Extra Benefit).
Line 5 Your Basic Insurance Amount
(from line 4 of the work table)..... $
Line 6 Age Multiplication Factor
(from table)........................ x
Line 7 Total amount of Basic Life insur-
ance including the Extra Benefit . . $
(line 5 times line 6)
Continuation of Life Insurance
After Retirement
The life insurance coverage under Basic Life may be continued
into retirement as described on pages 8 and 9.
Accidental Death and
Dismemberment Coverage
Accidental Death and Dismemberment benefits are a feature of
Basic Life for employees. For the conditions of payment of these
benefits, see page 13. Accidental Death benefits are equal to
your Basic Insurance Amount (line 4 of the work table), but
without the Extra Benefit.
Accidental Dismemberment benefits for the loss of a hand, foot or
ey . e are equal to one half of your Basic Insurance Amount;
however, if you lose any two of these, the full amount is
payable. Accidental Dismemberment benefits for such loss are
payable to you.
Accidental Death and Dismemberment benefits, if payable,
are paid in addition to any death benefits.
The Accidental Death and Dismemberment coverage
cannot be continued after your retirement.
Cost of Basic Life
Continuation After Retirement
The cost of Basic Life for active employees is based on your
Basic Insurance Amount (line 4 of the work table). You pay
two-thirds of the total cost and the Government pays one-third.
The cost to you is 16.5 cents biweekly, or 35.75 cents monthly,
for each $1,000 of your Basic Insurance Amount. The extra benefit
for employees under age 45 is provided without additional cost.
You must be enrolled in Basic Life in order to elect any
of the options.
Option A-Standard
Life Insurance Coverage
If you have elected Basic Life, you may elect Option AStandard,
in the amount of $10,000. However, if your actual rate of annual
basic pay is more than the maximum Basic Insurance Amount plus
$10,000, the amount of your Option A-Standard will be
higher-specifically, an amount which, when added to the maximum
Basic Insurance Amount, will equal your actual rate of annual
basic pay rounded up to the next $1,000. If this is the case, the
amount of your Option A-Standard will change automatically as
your salary and the maximum Basic Insurance Amount change. For
example, if the maximum Basic Insurance Amount is $136,000 and
your salary is $147,729 and you elect Option A-Standard, the
amount of your Option A-Standard coverage would equal $12,000.
You pay the full cost of this insurance. The cost depends upon
your age and the withholdings increase as you reach the next age
group, as shown in the table below. For insurance withholding
purposes, you are assumed to have reached these ages in January
of the year after your birthday.
Age Group
Under age 35
35 through 39
40 through 44
45 through 49
50 through 54
55 through 59
60 and over
Withholding for
$10,000 insurance
Biweekly Monthly
$ .40 $ .87
.50 1.OB
.70 1.52
1.10 2.38
1.80 3.90
3.00 6.53
7.00 15.17
Withholding rates for amounts of Option A-Standard in
excess of $10,000 are prorated.
Accidental Death and
Dismemberment Coverage
Option A-Standard includes coverage for accidental death and
dismemberment up to the face amount of the Option A-Standard life
insurance coverage. For the conditions of payment of these
benefits, see page 13.
Option A-Standard may be continued into retirement as
outlined on page 9.
The Accidental Death and Dismemberment coverage
cannot be continued after your retirement.
Option B-Additional
Life Insurance Coverage
If you have elected Basic Life, you may elect Option BAdditional
in an amount equal to one, two, three, four or five times your
annual basic pay (after rounding up to the next $1,000). The
maximum amount of basic pay to be used is the actual rate of
annual basic pay payable for positions at Level 11 of the
Executive Schedule under section 5313 of title 5, United States
Code.
The amount you choose should be based on your individual needs
and will determine the amount of withholding.
The amount of your life insurance under Option BAdditional
depends upon (1) your actual rate of annual basic pay and (2) the
number of multiples you elect. You may compute this amount by
using the table below.
Line 1 Your current actual rate of annual
basic pay $
Line 2 If not an even thousand, round up
to next thousand $
Line 3 Number of multiples you elect
(1, 2, 3, 4, or 5) x
Line 4 Amount of Option B-Additional
insurance (line 2 times line 3) . . $
You pay the full cost of this insurance. The cost depends upon
your age, and the withholdings increase as you reach the next age
group, as shown in the table below. For insurance withholding
purposes, you are assumed to have reached these ages in January
of the year after your birthday.
Withholding per $1,000 insurance
Age Group Biweekly Monthly
Under age 35 $.04 $.087
35 through 39 .05 .108
40 through 44 .07 .152
45 through 49 .11 .238
50 through 54 .18 .390
55 through 59 .30 .650
60 and over .70 1.517
Accidental Death and Dismemberment coverage is not included In
Option B-Additional. The amount of life Insurance you elect which
is in force under Option BAdditional is payable if you die,
regardless of the cause of death.
Continuation After Retirement
Option B-Additional may be continued after retirement as
outlined on page 9.
Option C-Family
Life Insurance Coverage
elected Basic Life, you may elect Option Ccover "eligible
family members": $5,000 for you,, nd $2,500 for each
eligible dependent child.
family members" include your present spouse and arried
dependent children (other than a foster stillborn child),
including an adopted child, a (but only if the stepchild lives
with you in a regular ild relationship), or a recognized natural
child ither living with you or who is receiving regular tantial
support from you. To be covered, a child under 22 years of age
or, if 22 or over, incapable pport because of mental or physical
disability isted before the child became 22 years of age.
ould acquire another eligible family member while
Continuation of Coverage
After Retirement
Basic Life
Your Basic Life coverage may be continued after you retire if:
(1) you retire on an immediate annuity, (2) you had been enrolled
in Basic Life or "Regular Insurance" for the entire
period(s) during which coverage was available to you or for the
last 5 years of your service immediately before the commencing
date of your annuity (for FERS annuitants who postpone receiving
their annuity, the 5 years immediately before their separation
date for annuity purposes), (3) you or the assignee, if
applicable, do(es) not convert it to an individual policy (see
page 17), and (4) you or the assignee(s), if applicable, do(es)
not file a Life Insurance Election form (SF 2817) waiving
coverage, including as a reemployed annuitant.
If you have elected Basic Life, you may elect Option CFamily to
cover "eligible family members": $5,000 for you,,
spouse and $2,500 for each eligible dependent child.
"Eligible family members" include your present spouse
and your unmarried dependent children (other than a foster child
or a stillborn child), including an adopted child, a stepchild
(but only if the stepchild lives with you in a regular
parent-child relationship), or a recognized natural child who is
either living with you or who is receiving regular and
substantial support from you. To be covered, a child must be
under 22 years of age or, if 22 or over, incapable of
self-support because of mental or physical disability which
existed before the child became 22 years of age.
If you should acquire another eligible family member while
insured for Option C-Family, he or she will be covered
automatically. When you no longer have any family mem.ber
eligible for this coverage, you must cancel the Option CFamily by
completing a new Life Insurance Election form, SF 2817. This is
not automatic; you must notify your employing office or
retirement system.
Claims for family members covered under Option CFamily are paid
to you; no designations are permitted. You cannot assign your
Option C coverage.
You pay the full cost of this insurance. The cost depends on your
age and the withholdings increase as you reach the next age
group, as shown in the table below. For insurance withholding
purposes, you are assumed to have reached these ages in January
of the year after your birthday. Withholdings do not vary based
on family size.
Withholding
Age of Employee Biweekly Monthly
Under age 35 $ .30 $ .65
35 through 39 .31
40 through 44 .52 1.13
45 through 49 .70 1.62
50 through 54 1.00 2.17
55 through 59 1.50 3.E5
60 and over 2.60 5.63
Accidental Death and Dismemberment coverage is not included in
Option C-Family. The amount of life insurance in force under
Option C-Family is payable if any eligible family member dies,
regardless of the cause of death.
Continuation After Retirement
Option C-Family may be continued after retirement as
outlined on page 9.
Your Basic Insurance Amount plus any Extra Benefit determined by
the Age Multiplication Factor is continued into retirement, but
the Basic Insurance Amount generally will begin to reduce at the
end of the month after the month in which you reach age 65 (or
when you retire, if later). (See reduction schedule below.)
Accidental Death and Dismemberment coverage stops at retirement.
Cost of post-retirement Basic Life coverage: The cost of
post-retirement coverage depends upon the level of protection you
want to retain after you reach age 65 (or when you retire, if
later). At the time you retire, you choose one of the three
levels described below:
Monthly Cost per $1,000
of BIA*
Before You After You
Election Reach Age 65 Reach Age 65
1 75% REDUCTION-Amount $.3575 per No Cost of insurance reduces 2%
per $1,000 month after age 65 to a minimum of 25% of your BIA.*
2. 50% REDUCTION-Amount $.8775 per $.52 per of insurance reduces
1 % per $1,000 $1,000 month after age 65 to a mini-
mum of 50% of your BIA.*
3. NO REDUCTION-1 00% of $2.0475 per $1.69 per your BIA* is
retained after $1,000 $1,000 age 65.
*Basic Insurance Amount at retirement
If you choose the 75% Reduction (election 1), your life insurance
withholdings will be at the same rate to age 65 as for active
employees (35.75 cents monthly per $1,000) and withholdings will
be deducted from your annuity. After you reach age 65,
withholdings will stop.
If you choose the 50% Reduction (election 2) or No Reduction
(election 3), until age 65 you pay the regular insurance premium
(35.75 cents monthly per $1,000) plus the additional premium
required for the extra coverage you will have after age 65. After
age 65, the regular insurance
premium stops, and you pay only the additional premium required
for the extra coverage. Withholdings for the 50% Reduction or No
Reduction election begin at retirement and continue for life or
until the election is changed or coverage is otherwise
discontinued.
Life insurance withholdings will be deducted from your
annuity.
The election of 50% Reduction or No Reduction must be made at the
time you retire. After retirement, you or the assignee(s), if
applicable, may change either election later to the 75% Reduction
election. However, you may not change from No Reduction to 50%
Reduction. The amount of your life insurance will be computed as
if you had originally elected the 75% Reduction. Withholdings for
the 50% Reduction or No Reduction will stop, and you will not be
entitled to a refund of the withholdings already paid.
Option A-Standard
Your Option A-Standard coverage (normally $10,000) continues
automatically after you retire if you continue your Basic Life
coverage unless: (1) you were not insured for Option A-Standard
or "Optional Insurance" for the entire period(s) during
which this coverage was available to you or for the last 5 years
of service immediately before the commencing date of your annuity
(for FERS annuitants who postpone receiving their annuity, the 5
years immediately before their separation date for annuity
purposes), (2) you or the assignee(s), if applicable, convert(s)
it to an individual policy, or (3) you or the assignee(s), if
applicable, file(s) a Life Insurance Election form (SF 2817)
declining coverage, including as a reemployed annuitant.
Effective at the end of the month after the month in which you
become age 65 or retire (if later), your Option AStandard
coverage will reduce by 2 percent of the preretirement amount per
month until it reaches 25 percent of the pre-retirement amount.
Accidental Death and Dismemberment coverage stops at retirement.
Withholdings will continue to be made from your annuity for your
Option A-Standard through the month in which you reach age 65, if
you retire before that age. No withholdings are required after
you are age 65 and retired.
Option B-Additional
Your Option B-Additional coverage continues automatically after
you retire if you continue your Basic Life coverage unless: (1)
you were not insured for Option B-Additional for the entire
period(s) during which this coverage was available to you or for
the last 5 years of service immediately before the commencing
date of your annuity (for FERS annuitants who postpone receiving
their annuity, the 5 years immediately before their separation
date for annuity purposes), (2) you or the assignee(s), if
applicable, convert(s) it to an individual policy, or (3) you or
the assignee(s), if applicable, file(s) a Life Insurance Election
form (SF 2817) declining coverage, including as a reemployed
annuitant.
The amount of Option B-Additional coverage you may continue will
be at the lowest multiple of insurance coverage that was in
effect for:
a. the 5 years of service immediately preceding the commencing
date of your annuity (for FERS annuitants who postpone receiving
their annuity, the 5 years immediately before their separation
date for annuity purposes), or
b. the entire period(s) of service during which the Option
B-Additional coverage was available to you, if covered less than
5 years.
That part of your insurance coverage which cannot be carried into
retirement may be converted to an individual policy.
Effective at the end of the month after the month in which you
become age 65 or retire (if later), your Option BAdditional
coverage will reduce by 2 percent of the preretirement amount per
month for 50 months, at which time coverage will end.
Withholdings will continue to be made from your annuity for
Option B-Additional through the month in which you reach age 65,
if you retire before that age. No withholdings are required after
you are age 65 and retired.
Option C-Family
Your Option C-Family coverage continues automatically after you
retire if you continue your Basic Life coverage unless: (1) you
were not insured for Option CFamily for the entire period(s)
during which this coverage was available to you or for the last 5
years of service immediately before the commencing date of your
annuity (for FERS annuitants who postpone receiving their
annuity, the 5 years immediately before their separation date for
annuity purposes), (2) you convert it to an individual policy, or
(3) you file a Life Insurance Election form (SF 2817) declining
coverage, including as a reemployed annuitant. Option C-Family
insurance is not considered as being "available to you"
during periods when you had no eligible family members.
Effective at the end of the month after the month in which you
become age 65 or retire (if later), your Option CFamily coverage
will reduce by 2 percent of the pre-retirement amount per month
for 50 months, at which time coverage will end.
Withholdings will continue to be made from your annuity for
Option C-Family through the month in which you reach age 65, if
you retire before that age. No withholdings are required after
you are age 65 and retired.
Conversion of Insurance Coverage
You or, if you have assigned your coverage, the assignee(s) may
convert all or part of your coverage to an individual
(direct-pay) insurance policy when you retire. Refer to page 17
for information on converting to an individual policy.