Benefits Administration Letter
Number: |
04-209 |
Date: October 14, 2004 |
Subject: |
Federal Employees' Group Life Insurance: New Option B Premiums |
Purpose
The purpose of this Benefits Administration Letter (BAL) is to transmit new premiums for the upper age bands for Option B coverage under the Federal Employees' Group Life Insurance (FEGLI) Program.
Background
In BAL 02-209, issued September 25, 2002, we announced additional age bands for Option B and stated that the premiums for these age bands would be phased in over a three-year period; that BAL also announced the premiums for Phase I. In BAL 03-208, issued October 21, 2003, we announced the premiums for Phase II. This BAL announces the premium for Phase III, the final phase.
New Premiums
These are the new Option B premiums:
Age Band |
Biweekly
per $1,000 of coverage |
Monthly
Per $1,000 of coverage |
65-69 |
$0.72 |
$1.560 |
70-74 |
$1.20 |
$2.600 |
75-79 |
$1.80 |
$3.900 |
80 and over |
$2.40 |
$5.200 |
These are the only FEGLI premiums that are changing at this time.
Effective Date
The new Option B premiums are effective January 1, 2005. Payroll offices must apply the new premiums the first pay period beginning on or after that date.
Publication and Notification
OPM is publishing the new premiums in a Federal Register notice. The premiums are also on the FEGLI website (www.opm.gov/insure/life).
OPM's Financial Reporting and Policy Group will notify payroll offices of the new Option B premiums through a BAL in the 300 series.
We strongly encourage agencies to notify their affected employees in advance of the increase.
|
Abby L. Block
Deputy Associate Director
Center for Employee
and Family Support Policy
|
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