5 C.F.R. § 870.707 Reemployed annuitants.
Title 5 - Administrative Personnel
(a)(1) If an insured annuitant is appointed to a position in which he/she is eligible for insurance, the amount of his/her Basic life insurance as an annuitant (and any applicable annuity withholdings) is suspended on the day before the 1st day in pay status under the appointment, unless the reemployed annuitant waives all insurance coverage. The Basic insurance benefit payable upon the death of a reemployed annuitant who has Basic insurance in force as an employee can't be less than the benefit which would have been payable if the individual hadn't been reemployed. (2) Except as provided in paragraph (b) of this section, the Basic insurance obtained as an employee stops with no 31–day extension of coverage or conversion right, on the date reemployment terminates. Any suspended Basic insurance (and any applicable annuity withholdings) is reinstated on the day following termination of the reemployment. (b) Basic insurance obtained during reemployment can be continued after the reemployment terminates if: (1) The annuitant qualifies for a supplemental annuity or receives a new retirement right; (2) He/she has had Basic insurance as an employee for at least 5 years of service immediately before separation from reemployment or for the full period(s) during which such coverage was available to him/her, whichever is less; and (3) He/she doesn't convert to nongroup insurance when Basic insurance as an employee would otherwise terminate. (c) If the Basic insurance obtained during reemployment is continued as provided in paragraph (b) of this section, any suspended Basic life insurance stops, with no 31–day extension of coverage or conversion right. (d) (1) An annuitant appointed to a position in which he/she is eligible for Basic insurance, is also eligible for Optional insurance as an employee, unless he/she has on file an uncancelled waiver of Basic or Optional insurance. (2) If the individual has Option A or C as an annuitant, that insurance (and applicable annuity withholdings) is suspended on the day before his/her 1st day in pay status under the appointment. Unless he/she waives Option A or C (or waives Basic insurance), he/she obtains Option A or C as an employee. (3) If the individual has Option B as an annuitant, that insurance (and applicable annuity withholdings) continues as if the individual weren't reemployed, unless: (i) The individual files with his/her employing office an election of Option B, in a manner designated by OPM, within 31 days after the date of reemployment. in this case Option B (and applicable annuity withholdings) as an annuitant is suspended on the date that Option B as an employee becomes effective; or (ii) The individual waives Basic insurance. (4) The Option B benefit payable upon the death of a reemployed annuitant is the amount in effect as an annuitant, unless he/she elected to have Option B as an employee. (5) Except as provided in paragraph (e) of this section, the Optional insurance obtained as an employee stops, with no 31–day extension or conversion right, on the date reemployment terminates. The amount of suspended Optional insurance which remains in force after applicable monthly reductions after age 65 (and corresponding withholdings) is reinstated on the day after reemployment terminates. (e) Optional life insurance obtained during reemployment may be continued after the reemployment terminates if the annuitant: (1) Qualifies for a supplemental annuity or receives a new retirement right; (2) Continues his/her Basic life insurance under paragraph (a) (2), (3), or (4) of §870.702; and (3) Has had Optional insurance as an employee for at least the 5 years of service immediately before separation from reemployment or for the full period(s) of service during which it was available to him/her, whichever is less. (f) If Optional insurance obtained during reemployment is continued as provided in paragraph (e) of this section, any suspended Optional insurance stops, with no 31–day extension of coverage or conversion right. (g) If a reemployed annuitant waives life insurance as an employee, the waiver also cancels his/her life insurance as an annuitant. [62 FR 48731, Sept. 17, 1997; 62 FR 52181, Oct. 6, 1997. Redesignated at 64 FR 72463, Dec. 28, 1999]
Title 5: Administrative Personnel
PART 870—FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM
Subpart G—Annuitants and Compensationers
§ 870.707 Reemployed annuitants.
