Life Insurance For Retired Federal Employees


Living Outside Of Canada

OPM Virtual Benefits Training – Federal Employees’ Group Life Insurance FEGLI 2021
  • Contact the Government of Canada Pension Centre without delay to:

  • provide your new address
  • find out whether your move will impact your group insurance benefits plan coverage.
  • Does your Public Service Health Care Plan coverage continue now that you are living outside of Canada?

    Yes. A retired member who lives outside of Canada and is not covered by a provincial or territorial health insurance plan is eligible for Comprehensive coverage under the Public Service Health Care Plan .

    To apply for Comprehensive coverage, complete a Pensioner application form to ensure coverage is continued at the desired level. Alternatively, you can contact the Government of Canada Pension Centre to obtain the required documentation.

    Claims will be paid in the currency of the country where you reside. Claims must be submitted using the PSHCP Out-of-Country Claim Form .

    Additional information on Comprehensive Coverage is located on the PSHCP Administration Authority website. You can also contact Sun Life.

    Your Comprehensive Coverage will continue when you return to Canada, until you again become eligible for provincial/territorial health insurance.

  • What online services are available to retired plan members?

    As a member of the Public Service Health Care Plan you can access your account via the internet and mobile application.

    The following features will be available on the Sun Life Member Services website and through the my Sun Life Mobile app:

  • access your PSHCP benefit card any time
  • Do Federal Employees Get Medical Benefits When They Retire

    After retirement, federal employees receive a monthly pension and medical coverage. To be eligible for coverage, you will need to meet minimum service requirements, including being covered as a federal employee for at least five years. Your spouse will be covered without the five-year rule.

    Do federal retirees get medical benefits?

    Medicare and the Federal Employee Health Benefit Program Most federal employees participate in the Federal Employee Health Benefit Program , a type of federal health insurance available to non-military employees and retirees of the United States. federal government.

    Do federal employees get free healthcare for life?

    Life Insurance It covers more than 4 million current and retired federal employees and their families. Unless you waive coverage, almost all full-time and part-time federal employees are automatically enrolled in a life insurance plan equal to their salary.

    Federal Employees Pay Social Security Taxes

    All federal employees hired in 1984 or later pay Social Security taxes. This includes the president, the vice president, and members of Congress. It also includes federal judges and most political appointees.

    They all pay the same amount of Social Security taxes as people working in the private sector.

    You May Like: Bear Canyon Estates Retirement Community

    Federal Employee Retirement Health Benefits And Medicare

    There are a lot of factors when trying navigate FEHB, Medicare, and Medicare Advantage .

    As someone decades away from being about to apply for Medicare, I havent studied them deeply and do not feel qualified to discuss this in great detail. To get more information on the topic, I interviewed Brian Sigwart. Brian is a certified financial planner with Cummins and Associates Financial Group. He has been providing financial wellness classes for over a decade at over 25 federal agencies in the DELMARVA area.

    How Much Does Insurance Cost As A Federal Employee

    Fegli Basic Life Insurance Retirement

    Health insurance will cost employees an average of $ 171.74 for each pay period, or about 4.8% of their wages, OPM said.

    Do federal employees have good insurance?

    FEHB Your Medicare is one of the best, if not the best, that you have. Not only does the Federal Employee Health Benefit Program offer hundreds of plan options to meet your unique needs, your agency also pays 70-75% of the premium.

    How much does Federal Blue Cross Blue Shield cost?

    Standard and Basic Option Premiums in Standard Option 201: Bi-weekly premiums for individuals only will be $ 105.99. Self Plus Ones bi-weekly premium will be $ 240.77. Bi-weekly premiums for independent individuals and families will be $ 254.23.

    Also Check: How Many Years Till I Can Retire

    How Much Does Fehb Cost After Retirement

    FERS retirees must choose a 50% or 25% survivor pension in order for your spouse to be eligible for FEHB coverage upon retirement after the death of the annuitant. Choosing 50% will cost you 10% of your full pension and choosing a 25% survivor pension will cost you 5% of your full pension at retirement.

    How much does FEHB cost per month?

    The maximum monthly government contribution is $ 530.53 for Self only, $ 1,136.70 for Self plus one and $ 1,243.95 for Self and family.

    What is the cost of FEHB for retirees?

    For retirees and non-postal employees of the larger FEHB plan, the Blue Cross / Blue Shield standard, bi-weekly membership rates for single people increase from $ 6.54 to $ 123.45, for single people plus one from $ 13.66 to $ 280.81 and for family coverage from $ 13.38 to $ 300.12.

    Can I Add My Spouse To Fehb After I Retire

    The Federal Employee Health Benefit program provides health insurance to federal employees and their dependents. Federal employers are eligible to retain FEHB after retirement. FEHBs can cover spouses and children up to the age of 26, even during retirement.

    Can I keep my FEHB after 65 years? Your FEHB coverage will continue whether or not you enroll in Medicare. If you can get Part A coverage at no premium, we recommend that you sign up for it. Most federal employees and annuitants are eligible for Medicare Part A at age 65 free of charge. If you do not enroll in Medicare, your FEHB plan will pay full benefits.

    Recommended Reading: How To Retire An American Flag

    How The 75 Percent Reduction Works

    On the day of retirement, the retiring employee is insured with the BIA. If the employee retires before age 65, then the annuitant retains that same amount of BIA and pays the same FEGLI premium the annuitant was paying as an employee until the annuitant becomes age 65. Upon reaching age 65 , the BIA reduces 2 percent of the BIA per month until the BIA reduces to 25 percent of the BIA original amount. This reduction process will take 37.5 months. Starting in the month the 2 percent reduction begins and continuing until the annuitant dies, the annuitant pays $0 in premiums for the FEGLI BIA coverage.

    Eligibility For Fegli Insurance As An Annuitant

    Welcome to the Forest Service New Employee Orientation: Federal Employee Group Life Insurance FEGLI

    When an employeeretires from federal service either under CSRS or FERS, the employee iseligible to continue FEGLI life insurance throughout his or her retirementyears if the retiring employee meets all of the following requirements: theemployee is eligible to retire and therefore will receive an immediate CSRS orFERS annuity the employee has been insured under FEGLI for at least thefive years immediately before the starting date of the CSRS or FERS annuity, orthe full period of service during which the employee was eligible to beinsured, if less than five years the employee was enrolled in FEGLI on thedate of retirement and the employee did not convert the FEGLI insurance toan individual policy.

    Read Also: How Much Retirement Should I Have At 30

    Fehb And Medicare Parts C & D

    Federal employees should definitely enroll in Medicare Parts A & B according to Brian.

    However, when it comes to Medicare Advantage, Brian recommends declining that coverage and sticking with your FEHB instead. Typically the FEHB has more benefits and greater coverage than Medicare part C. Finally, most FEHB plans also cover prescription drugs, so you should not need to enroll in Medicare Part D.

    However, you may want to double check that your FEHB plan does cover the prescription drugs you need before declining Medicare Part D. If you decide you want Medicare Part D, you can add Medicare Part D during a future open enrollment period but may face a penalty in the form of an increased premium. Furthermore, you can only add Part D during the open season.

    So, in summary, most federal employees should:

    • Keep FEHB coverage
    • Enroll in Medicare Parts A & B when they are eligible

    If you want to go deep into the weeds on this topic, OPM published a 20 page book that walks you through the decision making process. Be warned that it is extremely dry reading.

    Federal Employee Group Life Insurance

  • Office of the Chief Human Capital Officer
  • Federal Employee Group Life Insurance
  • The Federal Employees’ Group Life Insurance Program is a group term life insurance program for Federal and Postal employees and retirees. The Office of Personnel Management administers the Program and sets the premiums. OPM has a contract with the Metropolitan Life Insurance Company to provide this life insurance. The MetLife has an office called Office of Federal Employees’ Group Life Insurance . OFEGLI is the contractor that adjudicates claims under the FEGLI Program.

    FEGLI New Employees

    All Employees in eligible positions are automatically enrolled in Basic Life Insurance unless they choose to waive their coverage. Basic Life Insurance is effective on the first day you enter a pay and duty status. FEGLI also offers three options in addition to basic coverage. No proof of insurability is required for the basic or any optional insurance you elect during the 60 day initial election period. Proof of insurability may be required for insurance changes after that time.

    New employees have 60 days from the date of their appointment to elect additional Optional Insurance. Employees must be enrolled in Basic Life in order to elect Optional Insurance. Your completed Life Insurance Election Form, SF-2817, must be submitted to your servicing Human Resources Office in a timely manner. Additionally, employees are strongly encouraged to submit the SF-2823 Designation of Beneficiary form.


    Read Also: Can I Retire At 62 And Still Work Full Time

    Getting Married Or Reaching Common

    In general, an eligible spouse or common-law partner means:

    • the person to whom you are legally married or your common-law partner .
  • How can you apply for group insurance benefits for your new spouse or common-law partner?

    To apply for:

  • The Public Service Health Care Plan :
  • You must apply for coverage for your new eligible spouse or common-law partner within 60 days following his/her eligibility date for coverage to be effective as of that date otherwise, there is a three month waiting period.
  • Complete and submit either an electronic application to amend your coverage type using the secure online Compensation Web Applications or, you can complete and submit a paper application form to the Public Service Pay Centre or your departmental Compensation services.

    If your PSHCP coverage type is already Family because you have dependant children covered under the Plan, an amendment application is not required.

  • The Public Service Dental Care Plan :
  • Amend your coverage type with Canada Life by contacting the dedicated Customer Contact Services phone line toll free.
  • Fegli Life Insurance For Federal Employees

    Federal Employees

    The Federal Employees’ Group Life Insurance covers more than 4 million postal and federal employees and retirees, as well as many of their family members.

    Most new federal workers are automatically provided with Basic life insurance coverage under FEGLI. Payroll offices deduct premiums from your paycheck unless you waive this coverage.

    You May Like: Pine Run Retirement Community Doylestown Pa

    How The 50 Percent Reduction Works

    With the 50percent reduction option for BIA, the retiring employees BIA on the day ofretirement is reduced by 1 percent of the original BIA per month starting themonth after the retiree becomes age 65 until it reaches 50 percent of the BIA onthe day of retirement. This will take 50 months, or 4 years and 2 months tohappen. Unlike the 75 percent reduction option, the 50 percent reduction is notfree. The cost is $1.035 per $1,000 of coverage per month until age 65 and $0.71 per $1,000 of coverage per monthstarting the month after the annuitant becomes age 65 .

    With the No Reduction of BIA option, there is no reduction to the amount of BIA on the day of retirement. The annuitant keeps the full BIA amount throughout retirement, but a significantly higher premium cost compared to the BIA cost as an employee. The cost for the No Reduction BIA is $2.455 per $1,000 of coverage per month until the annuitant becomes age 65 and $2.13 per $1,000 of coverage per month starting the month after the annuitant becomes age 65 .

    Enroll In Or Change Federal Benefits

    • If you are a current employee, you can only enroll in or change your federal employee benefits during the annual Open Season.
    • You may enroll in or change your plans outside Open Season only if you experience a qualifying life event, such as marriage.
  • New employees can enroll in benefits outside of Open Season.
  • Open Season does not include FEGLI. Outside of FEGLI’s infrequent open seasons, you can enroll or increase your coverage if:
  • You take a physical exam or
  • You have a qualifying life event
  • Learn more about enrolling in, changing, or canceling FEGLI benefits.

    Don’t Miss: Retirement Homes In Memphis Tn

    How Much Does Federal Blue Cross Blue Shield Cost

    Standard and Basic Option Premiums in Standard Option 201: Bi-weekly premiums for individuals only will be $ 105.99. Self Plus Ones bi-weekly premium will be $ 240.77. Bi-weekly premiums for independent individuals and families will be $ 254.23.

    Is Blue Cross Blue Shield the same as Blue Cross Blue Shield Federal?

    The Blue Cross and Blue Shield benefits plan, also known as the Federal Employee Program® , has been part of the Federal Employees Health Benefits Program since its inception in 1960.

    Is Blue Cross Blue Shield a government insurance?

    For 60 years, the Blue Cross and Blue Shield service benefit plan, also known as the Federal Employee Program or simply FEP has provided health insurance to federal employees. We have been proud to be part of the Federal Employee Health Benefits program since its inception in 1960.

    Termination Of Insurance After Retirement

    Federal Employees Retirement System (FERS) Overview – 2020 OPM Virtual Benefits Training Event

    Your federal life insurance will terminate if your entitlement to annuity benefits ends. For example, if you are a disability retiree under age 60 and you are found recovered or restored to earning capacity, your disability annuity and life insurance coverage will end. You do not have the 31-day extension of coverage and may not convert the life insurance to an individual policy.

    Also Check: How To Find Hidden Retirement Accounts

    How Can I Learn More

    To learn more about Sun Life Financial’s coverage, check out the following e-tutorials:

    Disclaimer: the information in the e-tutorials provides an overview of the site and functionality. The values and benefit information described in the tutorials are not specific to the PSHCP.

    PSHCP members can also visit the PSHCP website for more information or refer to the PSHCP Plan Document.

    New To The Public Service

  • What is the Public Service Health Care Plan?

    The Public Service Health Care Plan is an optional health care plan for federal public service employees and their dependants. It is designed to supplement provincial health insurance plans. The PSHCP provides:

  • Supplementary Coverage which is intended for members who are covered under a provincial/territorial health insurance plan. It provides participants with health coverage to supplement the coverage provided under the provincial/territorial plan in the members province/territory of residence.
  • The Plan covers expenses for a range of health care services and supplies such as, prescription drugs, vision care and the services of various medical practitioners under its Extended Health Provision.
  • The Plan also includes three levels of hospital benefits under the Hospital Provision that provide reimbursement up to a specific dollar amount in excess of standard ward charges.
  • Comprehensive Coverage which is intended for members and their eligible dependants who are residing outside of Canada and who are not covered under a provincial/territorial health or hospital insurance plan.
  • For more information on the PSHCP, refer to the PSHCP Directive.

  • Note: As a retired member under the PSHCP you will have different contribution rates. See Preparing for retirement.
  • You May Like: How To Decide Where To Retire

    How To Cancel Basic Or Optional Life Insurance Coverage

    Federal retirees, unless they haveassigned their life insurance, may cancel Basic or Optional life insurance coverage at any time. Any cancellation or reduction of life insurance coverage must be in writing and have an original signature by the insured retiree. Be sure to include your retirement claim number or social security number and specify what action you want taken.

    Please note that you cannot increase your coverage after retirement, or reinstate any coverage that you cancel.

    Write to: U.S. Office of Personnel Management Retirement Operations Center P.O. Box 45 Boyers, PA 16017-0045 The FEGLI election form is usually for employees, but I would complete it and send it with your written request for the reduction.

    Does A Federal Employee Get Free Health Insurance After Retirement

    Federal Retirement Program CSRS: Civil Service Retirement System FERS ...

    Unfortunately, federal employees do not receive free health insurance upon retirement.

    However, federal employees can keep their current federal employee health benefits plan upon retirement.

    Employees continue to pay the employee portion of the premium. The government pays the remainder of the retirees premium at the same rate as they do for current employees. .

    Don’t Miss: How Much Money Will It Take To Retire

    Share post:


    More like this

    How To Plan For Retirement At 50

    If You...

    How Much Do I Need In 401k To Retire

    What Is...

    How Much Money To Retire At 62

    How Much...