If you’re enrolled in the Federal Employees Group Life Insurance program, watch your paycheck at the end of October. According to this Federal Register notice, the Office of Personnel Management has completed a study of FEGLI and is making changes to Employee Basic, Option A, Option B, Option C and Post-Retirement Basic Insurance.
Rates are going up for Basic, and in some cases for the optional forms of insurance too. In other cases, they’re staying the same or being reduced.
These changes reflect updated mortality and claims rates in each FEGLI category. The legislative structure of FEGLI assumes that premium rates are set for each age band independently of the other bands so that each band is financially self-supporting. The government pays one third of the premium cost for Basic and the employee pays two thirds. The employee or retiree pays the full cost of optional insurance.