Being a federal employee has many perks, including a robust pension scheme and health insurance plan. Here are answers to some of the questions you may have as you begin your federal retirement planning.
Will My Premiums Increase When I Retire?
No. Retirement won’t raise your premiums. You’ll be paying the same amount every month as you paid while you were employed. If you’re employed by a federal agency like the Post Office, your premiums may increase. During retirement, you’ll be receiving the same contribution from the government as most federal employees.
What Is Open Season?
For federal employees, Open Season starts on the Monday of the first full pay period in November and ends on the Monday of the first full pay period in December. This window is an opportunity to sign up for, change, or cancel coverages like your health, vision, or dental plan.
Who Will Receive My FEGLI Life Insurance Benefits After My Death?
After you pass away, your Federal Employee’s group life insurance benefits will be paid to named beneficiaries or entities in a specific order of precedence, which is as follows:
If you transferred ownership of your policy, benefits would be paid to the following:
- The beneficiary named by your assignee
- Assignee if there’s no named beneficiary
If you didn’t transfer ownership, but there’s a valid court order:
- OFEGLI will comply with the court order and pay benefits accordingly
If there’s neither assigned ownership nor a valid court order, benefits will be paid to:
- The beneficiary you designated on your policy
- Your widow or widower, if you didn’t name a beneficiary
- Your children (the share for any deceased child will be paid out to their children)
- Your parents (if none of the above exists)
- Your estate’s executor if none of the above exists
- Your other next of kin, as determined according to your state’s laws
Can I Cancel FEGLI?
You can cancel your FEGLI at any time, whether you’re a current or retired federal employee. If you’re an employee, start by filling out this form, Life Insurance Election SF 2817, and send it to your human resources offices. You may opt-out as follows:
- Customize your policy by signing only the required coverages
- Sign in Box 5 to terminate all coverages
However, it’s impossible to cancel or reduce your Basic, Option A, or Option B plan after transferring your life insurance policy to another entity.
To cancel or reduce coverage while retired, you should mail a signed request to OPM’s Retirement Office.
How Do I Obtain My Retirement Benefits Statement?
Your retirement benefits are a good source of income and can boost your qualification for a mortgage or loan. Sometimes, you may need a new retirement benefits statement to prove your income. If your bank, local tax authority, underwriter, or low-income housing lender requires a new copy of the benefits statement, contact the OPM’s Retirement Office. Their email address is email@example.com, and their phone number is 1-888-767-6738.
To secure your future when you’re older and no longer employed, begin your retirement benefit analysis as early as possible. This assessment can help you determine whether your financial plan, including savings and contributions, is on track to fulfill your retirement goals.
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