PERSONAL BENEFITS INFORMATION
BENEFITS FOR SEPARATING EMPLOYEES WHO ARE IMMEDIATELY RETIREMENT ELIGIBLE
ELIGIBILITY FOR RETIREMENT
Under the Civil Service Retirement System (CSRS), you may retire voluntarily after reaching age 55 with 30 years of service, age 60 with 20 years, or age 62 with 5 years. Under the Federal Employees Retirement System (FERS), you may retire at your minimum retirement age (MRA), age 55-57, (depending on year of birth) with 30 years of service, age 60 with 20 years, or age 62 with 5 years. Under FERS only, you can retire on a reduced annuity at MRA with as few as 10 years of service.
You may be eligible for a Discontinued Service Retirement (DSR) based on an involuntary separation. Under both CSRS and FERS, you must be age 50 and have at least 20 years of service or have at least 25 years of service regardless of age, to be eligible for a DSR.
An involuntary separation is qualified for DSR unless it is based upon misconduct or delinquency. A resignation may also qualify for DSR if you resign in response to a written request from an administration representative having the authority to request such resignations or from the new head of an agency.
The resignation of a Presidentially-appointed, policy-making officer qualifies for DSR whenever the individual’s resignation is accepted by the President (not limited to the advent of a new administration). When it is known that a Presidential appointee is leaving, the resignation of a noncareer SES member, or Schedule C employee who works for that Presidential appointee is also considered an involuntary separation for purposes of DSR.
FEDERAL EMPLOYEES HEALTH BENEFITS
Upon separation under an immediate retirement, your Federal Employees Health Benefits (FEHB) can be continued into retirement, provided that you are enrolled in a health plan at retirement or covered as a family member under another’s FEHB, and were enrolled for the 5 years of service immediately preceding retirement, or if less than 5 years for all periods of eligibility, since first opportunity to enroll. Retirees have the same health plan choices and pay the same share of the costs as active employees do.
If you do not meet the eligibility to continue FEHB as stated above, your FEHB coverage continues at no cost to you for an additional 31 days from the end of the pay period in which you separate. If you lose health benefits coverage due to your voluntary or involuntary separation (except in instance of gross misconduct), you have 60 days in which to elect to continue health coverage in your existing plan or another plan based under the FEHB Temporary Continuation of Coverage (TCC) Program. Under TCC your election of health coverage continues for up to 18 months and you pay both the employee’s and the Government’s share of costs (plus a 2 % administrative fee). You will receive written notification of your opportunity to elect TCC, along with information concerning the enrollment procedures, associated costs, and other pertinent information that can assist you in making an informed decision. Another option to continue your health coverage is to convert your current coverage/plan to a non-group contract.
For more information on FEHB, visit OPM’s website at http://www.opm.gov/insure/.
FEDERAL EMPLOYEES GROUP LIFE INSURANCE
Upon separation under an immediate retirement, your Federal Employees Group Life Insurance (FEGLI) Basic and Optional Life Insurance can be transferred and continued into retirement provided that you had the coverage for at least the 5 years of service immediately before retirement, or during all periods the coverage was available, if that is less than 5 years. You may convert any coverage that is not eligible to continue into retirement. As a retiree, you pay the same premiums as active employees. You must continue your Basic Life Insurance in order to keep any of your Optional Life Insurance.
Basic Life Insurance
As a retiree you will have three choices to make about your Basic Life Insurance:
75% Reduction.Cost before age 65 = $0.325 per $1,000 of Basic Insurance Amount (BIA); cost after age 65 = $0. The amount of your insurance reduces 2% per month after age 65 to a minimum of 25% of your BIA.
50% Reduction.Cost before age 65 = $1.03per $1,000 of BIA; cost after age 65 = $0.71 per $1,000. The amount of your BIA reduces 1% per month after age 65 to a minimum of 50% of your BIA.
No ReductionCost before age 65 = $2.4550 per $1,000 of BIA; cost after age 65 = $2.13 per $1,000. The amount of your insurance will equal 100% of your BIA and is retained after age 65.
Optional Life Insurance
The cost to continue your Optional Life Insurance is as follows:
Option A - CStandard. Effective at the end of the month after the month that you become age 65, this option will reduce 2% of the pre-retirement amount ($10,000) per month until it reaches 25% ($2,500). After age 65, no premiums are withheld.
Option B - Additional. You may elect to continue all or reduce the number of your Option B multiples and elect either full reduction or no reduction. If you elect full reduction, until you reach age 65, premiums (based on age) will be withheld from your annuity at the same rate as active employees. After age 65, there is no cost, but the insurance value begins to reduce 2% per month for 50 months, at which time this coverage will end. If you elect no reduction, you will continue to pay premiums at the same rate as active employees and you will retain the full amount of your Option B Additional insurance.
Option C - Family. You may elect to continue all or reduce the number of your Option C multiples and elect either full reduction or no reduction. If you elect full reduction, until you reach age 65, premiums (based on age) will be withheld from your annuity at the same rate as active employees. After age 65, there is no cost, but the insurance value begins to reduce 2% per month for 50 months, at which time this coverage will end. If you elect no reduction, you will continue to pay premiums at the same rate as active employees and you will retain the full amount of your Option C Family insurance.
For more information on FEGLI and the cost of Optional Life Insurance for annuitants, visit OPM’s website at http://www.opm.gov/insure/life/rates/an_rates.asp.
If you do not meet the eligibility requirements to continue FEGLI as stated above, your life insurance coverage is terminated at the end of the day on which you separate. Coverage is extended and will continue at no cost to you for a period of 31 days following the effective date of your separation. You have a right to convert all or any part of your life insurance coverage to an individual non-group policy with no requirement for a medical examination, with rates based on your age and class of risk. You will be provided with the documents needed to convert your policy upon separation.
FLEXIBLE SPENDING ACCOUNTS
Your health care and Limited Expense Health Care Flexible Spending Accounts (FSA) will terminate as of the date of your separation. Any health care expenses incurred prior to the date of separation will still be reimbursed, but those incurred after the date of separation will not be, even if there is still money in your FSA account. Sums remaining in the account will be forfeited under the “use or lose” rule if not used by March 15th of the year following separation. If you use your entire elected amount before FSA deducts it from your pay through allotments prior to your separation, you will not be indebted to the Federal government for the remaining allotments.
Your Dependent Care FSA account balance at the time of separation will still be available to you for any eligible expenses incurred within the Plan Year. Claims do not have to be submitted by the separation date, but must be submitted up to 30 calendar days after the end of the plan year.
For more information on FSA visit https://www.FSAFEDS.com or call 1-877-372-3337, TTY 1-800-952-0450.
FEDERAL LONG-TERM CARE INSURANCE PROGRAM
YAs long as you continue paying premiums, your Federal Long-Term Care Insurance Program (FLTCIP) coverage continues. It is fully portable. You will need to make arrangements with LTC Partners to ensure premiums are not interrupted. Premiums may be withheld from your annuity payment.
For more information on FLTCIP visit http://www.ltcfeds.com or call 1-800-582-3337, TTY 1-800-843-3557.
If you are not currently covered by FLTCIP, you may apply for this coverage at any time directly with LTC Partners. Your application will be subject to full underwriting, which means that LTC Partners may require detailed health information.
FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM
Upon separation in the case of an immediate retirement, your coverage under Federal Employees Dental and Vision Insurance Program (FEDVIP) will continue. Premiums may be withheld through your annuity payment.
For more information, https://www.benefeds.com/Portal/jsp/LoginPage.jsp or call 1-877-888-3337, TTY 1-877-889-5680.
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