Sf Opm Continuation of Life Insurance Eoverage as an Annuitant or Compensationer

Federal Workers' Compensation

The Office of Workers' Compensation Programs administers four major disability compensation programs which provide wage replacement benefits, medical treatment, vocational rehabilitation and other benefits to certain workers or their dependents who experience work-related injury or occupational disease.

Here is a forum for members to share and exchange experiences regarding to workers' compensation related issues.

To read today's top news stories on federal employee pay, benefits, retirement, job rights and other workplace issues visit FederalDaily.com.

chris		#1 Posted : Friday, June 25, 2010 7:35:53 AM(UTC)
Rank: Groupie Groups: Registered Joined: 1/25/2010(UTC) Posts: 97		I recieved a notice for continuation of life insurance coverage as an annuitant or compensationer. and sent a form SF 2818. Has anyone recieved this form? The letter states that I have to decide if I want to switch to a company outside to a private agency. I am confused and do not know what to do. Can anyone give me advice? Thanks

bettyveronica		#2 Posted : Tuesday, June 29, 2010 10:51:02 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 6/17/2002(UTC) Posts: 342		Chrissy:  Never heard of it - but OWCP-Land is a big dry wasteland like a desert - with the bleached bones skeletons of former OWCP claimants spread out over 1000's of miles.  Another "prospector" searching for their benefits will answer you soon, with the right answer.  Don't ever give up!

edalder		#3 Posted : Wednesday, June 30, 2010 7:37:29 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 10/9/2001(UTC) Posts: 2,371 Thanks: 2 times Was thanked: 192 time(s) in 167 post(s)		If the info you received included a form, it might help if you provide the form number. Generally, if you have been out on OWCP for one year or longer, your employer is supposed to file certain FEGLI paperwork on you. You generally have the same options with continuing your Federal Employees' Group Life Insurance (FEGLI) that you would have if you were retiring. You will need to have been enrolled in any FEGLI, basic plus an options for at least five years in order to carry the FEGLI in retirement or on OWCP. Although OWCP deducts the FEGLI premiums, the completed paperwork about your FEGLI options on OWCP has to be filed with OPM so that it knows who to pay and what those options were in the event of your untimely demise. Additionally, because you are considered a retiree for FEGLI purposes, you may have been presented with options about how much of your FEGLI you want to keep on or after age 65. Most FEGLI declines in value beginning at age 65 unless you elect to pay additional (and rather expensive) premiums. As with any life insurance issue, you need to evaluate how much life insurance you truly need. There is no one size fits all answer to this question. FEGLI, especially some of the options, can be rather expensive.  So, you need to analyze who, besides yourself, depends upon your income and what would that person do if that income was no longer there. Personally, when I retire, I probably will just keep basic and allow it to decline to 25% of its original value beginning at age 65.  That would still be about $25,000, which should be enough to bury me and have a decent wake as well, even many years from now. I also have funds in TSP and other assets.  So my survivors could present a creditor claim to my estate if necessary. But, if you have five minor child to support and your OWCP payment is your only income, then you likely need some life insurance although the eligibility of your minor children for SS benefits would also be a factor in how much life insurance you think you need. If you did not have FEGLI for five years or from your first opportunity, then you may need to convert the FEGLI to an individual policy. The window in which to do that can be rather short. (I think it is 30 days, but read the paperwork.) As long as you do it within 30 days, you will not need to submit to a medical exam. This individual policy likely would be more expensive than FEGLI and you would have to pay for it separately. But, if you see yourself as needing life insurance and don't qualify to keep FEGLI on OWCP or in retirement, then you may need to consider making the conversion. You also may want to make the conversion if you determine the individual policy is less than FEGLI would be. Just understand that if you do drop FEGLI, you generally would not be able to regain it unless you returned to work for the Feds.
		Kivi

chris		#4 Posted : Wednesday, June 30, 2010 4:03:05 PM(UTC)
Rank: Groupie Groups: Registered Joined: 1/25/2010(UTC) Posts: 97		Thanks Kivi does this mean that I will have to pay this premium out off my owcp monthly check? The form is SF 2818.

edalder		#5 Posted : Friday, July 2, 2010 5:50:27 AM(UTC)
Rank: Senior Member Groups: Registered Joined: 10/9/2001(UTC) Posts: 2,371 Thanks: 2 times Was thanked: 192 time(s) in 167 post(s)		That form is the form that you use to continue your FEGLI as a compensationer (OWCP beneficiary). I am assuming that OWCP already is deducting FEGLI premiums from your compensation, but look at a recent benefit statement from OWCP or go to Claimant Query System and see what FEGLI deductions you have. Assuming that you had basic FEGLI and any FEGLI options for five years before your eligibility for OWCP benefits, you may retain that FEGLI while receiving OWCP benefits. You cannot add FEGLI options that you did not have before.  You can drop options that you no longer believe that you need, if you so choose. The form is an opportunity for you to make that decision, if you choose. You also have the option of paying an additional premium to prevent your basic FEGLI from declining in value beginning at age 65.  If you do not pay that additional premium, your basic FEGLI will start declining at age 65 until it is worth only 25% of what is was before.  For example, if you basic FEGLI currently provides $50,000 of life insurance it will start declining at age 65 until it is worth only $12,500 by age 70.  Your options are to let it decline or pay an additional premium so that it only declines to $25,000 or another additional premium so that it won't decline at all.  If you are not close to age 65, you might want to think about how long you will pay these additional premiums relative the amount of life insurance that you want to preserve. This one is not a decision that you can postpone until age 65. If you do decide to let it decline, you will stop paying basic FEGLI premiums beginning at age 65. If you have some of the optional FEGLI, the premiums will change every time you hit a new age band. Age bands in FEGLI change every five years, at ages 35, 40, 45, 55, 60 and 65.  The steepest increase occurs at age 60, but that age 55 one can be seem like a whopper as well.  At age 65, if you do want to keep any option B multiples, you will have to pay for it and it can get expensive.  However, unlike what happens with Basic FEGLI, you don't have to make the decision to freeze Option B multiples until you are 65.  If you decide to not freeze the option B multiples at age 65 then that option(s) declines until zero by age 70. What you decided to do, depends upon what FEGLI options you currently have.  If all you have is basic FEGLI, then you can only make decisions relative to it.  If you do decided to drop any of your FEGLI, you can make the decision to convert options that you drop to an individual policy or policies.  You would pay the premiums separately to the insurance companies and OWCP should adjust or stop any FEGLI deductions based upon your decision. Once you submit this form, OPM notifies OWCP about your eligibility to keep basic FEGLI and any options while on compensation.  If you do elect some of those no or partial age 65 reductions of basic FEGLI, then OPM will notify OWCP of your decision and OWCP will start deducting those additional premiums. More info about FEGLI is available at www.opm.gov/insure/fegli
		Kivi

big tex		#6 Posted : Wednesday, July 21, 2010 3:39:39 PM(UTC)
Rank: Newbie Groups: Registered Joined: 4/15/2009(UTC) Posts: 7		FEGLI coverage stops at the age of 70?  Why wouldn't insure me until death, even if I died at 90?  Big Tex

edalder		#7 Posted : Wednesday, July 21, 2010 9:40:03 PM(UTC)
Rank: Senior Member Groups: Registered Joined: 10/9/2001(UTC) Posts: 2,371 Thanks: 2 times Was thanked: 192 time(s) in 167 post(s)		There are provisions to reduce or prevent the decline of your FEGLI, depending upon what options you have. They are, however, pretty expensive. Go to the FEGLI website at OPM for details.
		Kivi

Users browsing this topic

Guest

Forum Jump  

You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

veatchwispond.blogspot.com

Source: https://forum.federalsoup.com/default.aspx?g=posts&t=25515

Share this post