Discontinuance of FEGLI



Your life insurance coverage (including AD&D) as an
employee stops on the earliest of the following dates:



(1) . The date you are separated from Federal service (unless you are eligible to continue life insurance during retirement or while in receipt of Workers' Compensation).



(2) The date of expiration of a period of 12 months of non-pay status (unless eligible as a recipient of



I Workers'Compensation). The 12 months of nonpay status may be continuous or broken by periods of less than 4 consecutive months of pay status.



(3) The date of any change in your employment which results in your ceasing to be an employee eligible for insurance.



(4) At the end of the pay period in which it is determined that periodic pay, after all other deductions, is insufficient to cover the required withholdings. (In some instances, an employee's salary may be reduced by required withholdings, such as for court-ordered child support and Federal income tax to a point at which deductions for existing life insurance coverage cannot be made. If the agency determines that this situation will continue for at least six months, your life insurance must be terminated.)



(5) The last day of the pay period during which your employing office receives a waiver of insurance coverage from you.



(6) The date of termination of the FEGLI contract.

Your life insurance coverage as a retired employee
stops on the earliest of the following dates:



(1) The date of termination of your annuity.

(2) The day immediately before you are in a pay status under an appointment to a position which makes you again an employee eligible for insurance under the Group Policy.



(3) The effective date of your voluntary cancellation of coverage.



(4) The date of termination of the FEGLI contract.

If you are a disability retiree whose annuity terminates, you will retain your life insurance coverage if you are entitled to and apply for an immediate discontinued-service annuity. You will receive complete information concerning your right to do so when your disability annuity terminates. Also, if you are under age 60 and your disability annuity is reinstated (after December 31, 1983) due to loss of earning capacity or a recurrence of the disability for which you retired, you will be given an opportunity to have your life insurance coverage reinstated; only coverage of the type and up to the amount you had in effect at the time your disability annuity was terminated can be reinstated. If you are entitled only to a deferred annuity after your disability terminates, you cannot retain your life insurance coverage as a retiree and you cannot convert it to an individual policy.



If you are reemployed with the Federal Government, ask your employing office about your insurance rights as a reemployed annuitant.



If you are covered under the Federal Employees Retirement System (FERS) and qualify for an immediate annuity when you leave Federal service, but postpone the commencing date of your annuity, your life insurance terminates at the end of the pay period during which you separate. You have the same 31-day extension of coverage and opportunity to convert to nongroup coverage as other employees who separate from service, as described in the

following two sections. When your postponed annuity begins, the life insurance coverage you held immediately before separation resumes if the statutory requirements for continuing coverage into retirement are met (see page 8). You must then cancel any nongroup coverage to which you may have converted upon your separation from service.