5 C.F.R. Subpart B—Types and Amount of Insurance
Title 5 - Administrative Personnel
(a) There are two types of life insurance under the FEGLI Program: Basic and Optional. (b) There are three types of Optional insurance: Option A (standard optional insurance), Option B (additional optional insurance), and Option C (family optional insurance). (a)(1) An employee's Basic insurance amount (BIA) is either: (i) His/her annual rate of basic pay, rounded to the next higher thousand, plus $2,000; or (ii) $10,000; whichever is higher, unless an employee has elected a Living Benefit under subpart K of this part. Effective for pay periods beginning on or after October 30, 1998, there is no maximum BIA. (2) The BIA of an individual who is eligible to continue Basic Life insurance coverage as an annuitant or compensationer is the BIA in effect at the time his/her insurance as an employee would stop under §870.601. (b) An employee's BIA automatically changes whenever annual pay is increased or decreased by an amount sufficient to raise or lower pay to a different $1,000 bracket, unless the employee has elected a Living Benefit under subpart K of this part. (c) The amount of an employee's Basic Life insurance coverage is equal to his/her BIA multiplied by the appropriate factor based on the employee's age, as follows: [62 FR 48731, Sept. 17, 1997, as amended at 64 FR 72461, Dec. 28, 1999] (a) The BIA of an individual who elects a Living Benefit under subpart K of this part is the amount of insurance left after the effective date of the Living Benefit election. This amount is the individual's post-election BIA. (1) The post-election BIA of an individual who elects a full Living Benefit is 0. (2) The post-election BIA of an employee who elects a partial Living Benefit is the BIA as of the date OFEGLI receives the completed Living Benefit application (the “pre-election” BIA), reduced by the percentage which the partial lump-sum payment represents of the full Living Benefit payment the employee could have received if he/she elected a full Living Benefit; this amount is rounded up or down to the nearest multiple of $1,000 or, if midway between multiples, to the next higher multiple. (b) The post-election BIA cannot change after the effective date of the Living Benefit election. (c) For purposes of computing the payment of benefits upon the death of an insured individual who elected a partial Living Benefit, the post-election BIA will be multiplied by the age factor in effect on the date OFEGLI received the completed Living Benefit application. (a) (1) An insured employee's annual pay is his/her annual rate of basic pay as fixed by law or regulation. (2) Annual pay for this purpose includes the following: (i) Interim geographic adjustments and locality-based comparability payments as provided by Pub. L. 101–509 (104 Stat. 1479); (ii) Premium pay for standby duty under 5 U.S.C. 5545(c)(1); (iii) Premium pay for overtime inspectional service for customs officers as provided by Pub. L. 103–66 (107 Stat. 453); (iv) For a law enforcement officer as defined under 5 U.S.C. 8331(20) and §§831.902 and 842.802 of this title, premium pay for administratively uncontrollable overtime under 5 U.S.C. 5545(c)(2); (v) Night differential pay for wage employees; (vi) Environmental differential pay for employees exposed to danger or physical hardship; (vii) Tropical differential pay for citizen employees in Panama; (viii) Special pay adjustments for law enforcement officers; (ix) Availability pay for criminal investigators under 5 U.S.C. 5545a; (x) Bonuses for physicians and dentists of the Department of Veterans Affairs under Pub. L. 96–330 (94 Stat. 1030); and (xi) Straight-time pay for regular overtime hours for firefighters, as provided in 5 U.S.C. 5545b and part 550, subpart M, of this chapter. (b) To convert a pay rate of other than annual salary to an annual rate, multiply the pay rate by the number of pay units in a 52–week work year. (c) The annual pay for a part-time employee is his/her basic pay applied to his/her tour of duty in a 52–week work year. (d) The annual pay for an employee on piecework rates is the total basic earnings for the previous calendar year, not counting premium pay for overtime or holidays. (e) The annual pay for an employee with a regular schedule who works at different pay rates is the weighted average of the rates at which the employee is paid, projected to an annual basis. (f) The annual pay for a non-Postal intermittent employee or an employee who works at different pay rates without a regular schedule is the annual rate which he/she is receiving at the end of the pay period. (g) If an employee legally serves in more than 1 position at the same time, and at least 1 of those positions entitles him/her to life insurance coverage, the annual pay is the sum of the annual basic pay fixed by law or regulation for each position. Exception: this doesn't apply to part-time flexible schedule employees in the Postal Service. [62 FR 48731, Sept. 17, 1997; 62 FR 52181, Oct. 6, 1997, as amended at 63 FR 64595, Nov. 23, 1998] (a) Option A coverage is $10,000. Effective for pay periods beginning on or after October 30, 1998, Option A cannot exceed this amount. Exception: This does not apply to annuitants who retired with a higher amount of Option A before the removal of the maximum on Basic insurance (the first pay period beginning on or after October 30, 1998). (b)(1) Option B coverage comes in 1, 2, 3, 4, or 5 multiples of an employee's annual pay (after the pay has been rounded to the next higher thousand, if not already an even thousand). Effective for pay periods beginning on or after October 30, 1998, there is no maximum amount for each multiple. (2) The amount of Option B coverage automatically changes whenever annual pay is increased or decreased by an amount sufficient to raise or lower pay to a different $1,000 bracket. (c) Effective April 24, 1999, Option C coverage comes in 1, 2, 3, 4, or 5 multiples of the following amounts: $5,000 on the death of a spouse and $2,500 on the death of an eligible child. Payments are made to the insured individual. [62 FR 48731, Sept. 17, 1997, as amended at 64 FR 72461, Dec. 28, 1999] (a) (1) Accidental death and dismemberment coverage is an automatic part of Basic and Option A insurance for employees. (2) There is no accidental death and dismemberment coverage with Options B and C. (3) Individuals who are insured as annuitants or compensationers do not have accidental death and dismemberment coverage. (b) (1) Under Basic insurance, accidental death benefits are equal to the BIA, but without the age factor described in §870.202(c). (2) Under Option A, accidental death benefits are equal to the amount of Option A. (c)(1) Under Basic insurance, accidental dismemberment benefits for the loss of a hand, foot, or eye are equal to one-half the BIA. For loss of 2 or more of these in a single accident, benefits are equal to the BIA. (2) Under Option A, accidental dismemberment benefits for the loss of a hand, foot, or eye are equal to one-half the amount of Option A. For loss of 2 or more of these in a single accident, benefits are equal to the amount of Option A. (3) Accidental dismemberment benefits are paid to the employee.
Title 5: Administrative Personnel
PART 870—FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM
Subpart B—Types and Amount of Insurance
§ 870.201 Types of insurance.
§ 870.202 Basic insurance amount (BIA).
------------------------------------------------------------------------ Age Factor------------------------------------------------------------------------35 or under.................................................... 2.036............................................................. 1.937............................................................. 1.838............................................................. 1.739............................................................. 1.640............................................................. 1.541............................................................. 1.442............................................................. 1.343............................................................. 1.244............................................................. 1.145 or over..................................................... 1.0------------------------------------------------------------------------
§ 870.203 Post-election BIA.
§ 870.204 Annual rates of pay.
§ 870.205 Amount of Optional insurance.
§ 870.206 Accidental death and dismemberment.
