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.