Life insurance premiums: Reality check

Premiums in the federal life insurance program (FEGLI) will be changing next year. Some will go up, some will decrease. The new rates will be effective the first pay period on or after Jan. 1. Simple, right?

Not really.

Although the premium changes will take place in January, workers and retirees will have to wait until the next FEGLI open season, which won’t be until September of next year.  It will be from Sept. 1-30. ...

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Premiums in the federal life insurance program (FEGLI) will be changing next year. Some will go up, some will decrease. The new rates will be effective the first pay period on or after Jan. 1. Simple, right?

Not really.

Although the premium changes will take place in January, workers and retirees will have to wait until the next FEGLI open season, which won’t be until September of next year.  It will be from Sept. 1-30.  But …

Not yet.

The Office of Personnel Management benefits letter says that “eligible employees may elect changes by submitting an election to their HR office.  Eligible employees may elect changes by electronic means where this option is available through their employing agency.  Subject to FEGLI law and regulation, including applicable pay and duty status requirements, the effective date for changes to FEGLI coverage under an Open Season election will be delayed one full year from the beginning of the first full pay period on or after October 1, 2017.”

Go figure.

Workers and retirees will be able to make changes in their FEGLI coverage during an open season. But the open season won’t take place until 8 months after the premiums go up, and the date for changes in FEGLI coverage won’t take place for another year, until Oct. 1, 2017.

This may be why some government workers and retirees cry easily.

Nearly Useless Factoid:

By Michael O’Connell

“The Tears of a Clown” by Smokey Robinson & the Miracles is one of the few hit pop singles to feature a bassoon, which was performed by Charles R. Sirard.

Source: Wikipedia

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