What happens to my insurance when I leave the federal government?
Most of your benefits can be continued in retirement -- if certain conditions are met.
Federal employees have health insurance, life insurance, supplemental dental and vision coverage and a flexible spending account program to help pay for out-of-pocket expenses with tax-free dollars. Although not currently open to new applicants, long-term care insurance is another insurance benefit that has been around since 2002.
Most of these benefits can be continued in retirement if certain conditions are met. For those who don't meet the requirements to continue these valuable benefits in retirement, the loss of coverage can be devastating. Here are some things to know about federal insurance benefits after leaving federal employment:
Federal Employees Health Benefits
- You can find an overview here
- Continuation into retirement
- You must be entitled to retire on an immediate annuity (one that starts within 31 days of your separation from Federal employment) under a retirement system for civilian employees (including the Federal Employees Retirement System Minimum Retirement Age + 10 retirement), and
- You must have been continuously enrolled (or covered as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date your annuity starts, or for the full period(s) of service since your first opportunity to enroll (if less than 5 years).
- Including coverage as a family member under another person's FEHB enrollment;
- or coverage under the Uniformed Services Health Benefits Program (also known as TRICARE) if you were covered under an FEHB enrollment at the time of your retirement.
- If you are eligible under the FERS MRA + 10 retirement and choose to postpone your application for retirement to avoid the age penalty,
- Follow the options listed below.
- You may choose to reenroll when your annuity begins if you meet the two requirements shown above.
- Eligible Federal annuitants and their surviving spouses retain their eligibility for FEHB health coverage at the same cost as current employees.
- Leaving federal service without immediate retirement eligibility
- Automatic free 31-day extension of coverage.
- Temporary Continuation of Coverage
- You may continue coverage for up to 18 months after separation from Federal service (except for gross misconduct).
- You will pay the full premium for the plan, both the employee and Government shares of the premium, plus a 2% administrative charge.
- After your initial enrollment, you can change plans or options during Open Season or if you have certain qualifying life events.
- If your enrollment ends because the TCC period expires, you are entitled to a 31- day temporary extension of your coverage.
- If your enrollment ends due to a cancellation, you are not entitled to a 31- day extension of coverage.
Federal Employees Group Life Insurance
- Continuation into Retirement
- You are entitled to continue FEGLI coverage into retirement if you will retire on an immediate annuity (one that starts within 31 days of your separation from federal employment), and:
- You have been insured for the 5 years of service immediately before the starting date of your annuity, or for the full period(s) of service during which you were eligible to be insured if less than 5 years; and
- You have not converted to an individual policy.
- You must complete SF 2818 (Continuation of Life Insurance Coverage). On this form, you choose whether you want to continue your Basic life insurance into retirement.
- If you choose to continue your Basic insurance, you must elect the amount of Basic insurance you want to keep after age 65 (or retirement, if it is later). The choices are 75% Reduction, 50% Reduction, or No Reduction.
- The amount of Option A automatically reduces when you reach age 65 (or retire, if later). There is no election to be made.
- To make an election regarding post-65 reductions for Option B and Option C. You must:
- Elect how many Option B and C multiples you currently have as an employee you wish to continue into retirement; and
- Choose whether to have all those multiples reduced (Full Reduction) or not reduced (No Reduction) when you reach age 65 (or retire, if later).
- You may also elect Full Reduction for some multiples and No Reduction for other multiples of your Option B and/or Option C coverage.
- The FEGLI retirement benefit is pre-funded by premium costs so that after age 65 (or at retirement, if later) some coverage can be continued by retirees at no cost.
- An annuity you receive under the Minimum Retirement Age (MRA)+10 provision of FERS also qualifies as an immediate annuity, even though you separated from service and postponed receipt of your annuity.
- FEGLI coverage will be reinstated when you file for retirement if you postpone your application for retirement under the FERS MRA+10 provision if you meet the conditions to continue your enrollment shown above.
- The Office of Personnel Management (OPM) will send you a notice of eligibility and an SF 2818 (Continuation of Life Insurance Coverage).
- You must return the completed SF 2818 within 60 days after OPM mails the form.
- Basic insurance will be reinstated effective the date your annuity starts or the date OPM receives your application for annuity, whichever is later.
- If you are eligible to have Basic FEGLI reinstated, you are also eligible to have Optional insurance reinstated if you meet the same coverage requirements shown above.
- Leaving federal service without immediate retirement eligibility
- You are entitled to a free 31-day extension of coverage.
- You will have an opportunity to convert to an individual life insurance policy (not FEGLI).
- You must receive an SF 2819 (Notice of Conversion Privilege) for conversion purposes and an Agency Certification of Insurance Status (SF 2821) from your agency.
- You may convert all or any part of your Basic and Optional coverage.
- No medical examination is required, although you may be asked a few questions about your health to see if you qualify for a lower premium. You do not have to answer these questions, but if you do not, you may be paying a higher premium than necessary.
- The individual policy will be issued by an insurance company you select from the list of approved companies.
- The individual policy may be for any type of life insurance customarily issued by the insurance company you select, except term insurance, universal life insurance, or any other type of life insurance with an indeterminate premium.
- When your insurance terminates, your employing office must give you a Notice of Conversion Privilege (SF 2819). If you wish to convert your coverage, you must send SF 2819 to the Office of Federal Employees' Group Life Insurance (OFEGLI) within the 31-day time limit for converting.
- Send SF 2821 to OFEGLI along with SF 2819. If you do not have SF 2821, do not delay in sending SF 2819.
- You should request a completed SF 2821 from your agency before the expiration of the 31-day time limit and forward it to OFEGLI.
- OFEGLI needs SF 2821 to calculate the amount of insurance you can convert. Once OFEGLI has received your SF 2819 and SF 2821, it will send you a list of insurance companies that are offering conversion policies in your
- Family members may convert the Option C coverage (and name beneficiaries of their choice).
Federal Employees Dental and Vision Insurance Program
Continuation into Retirement
- If you enrolled in FEDVIP as a federal employee and you retire while you are enrolled, in most cases you do not need to do anything.
- Your FEDVIP coverage automatically continues.
- BENEFEDS.gov will work with your annuity system to set up premium deductions from you after they receive notification of your retirement from your payroll department.
- In some cases, BENEFEDS won't be notified of your retirement. Call BENEFEDS Customer Service if you do not see a deduction after two full pay periods.
- Annuitants do not have to be eligible or enrolled in the FEHB Program.
Leaving Federal service without immediate retirement eligibility
You cannot enroll or continue FEDVIP enrollment after you leave Federal Service (not retiring). There is no 31-day temporary extension of coverage or opportunity to convert to private coverage. Your coverage ends on the last day of the pay period during which you separate.
Federal Long Term Care Insurance Program
Continuation into Retirement
If you currently pay your premiums through payroll deduction and retire, in most cases, you don't need to do anything to begin paying your FLTCIP premiums through your annuity. Once BENEFEDS receives notification from your payroll office about your retirement, they will work with OPM (or other retirement system) to set up premium deductions from your annuity. If you do not see a deduction after two full pay periods, contact the FLTCIP.
Use the Billing Change Form to change your billing method to:
- Payroll or annuity/pension deduction: BENEFEDS will deduct premiums from each annuity/pension payment you receive.
- Automatic bank withdrawal: Your ABW deduction will be reflected in your bank account between the third and fifth business day each month.
- Direct bill: We mail bills by the second Friday of each month. Allow 7 to 10 business days to receive your bill. Your premium is always due on the first of the following month.
Leaving Federal service without immediate retirement eligibility
This will not affect your FLTCIP coverage. Your coverage will remain in effect as long as you continue to pay premiums. If you pay your premiums through payroll deduction, you will need to contact FLTCIP to make other billing arrangements. You may also complete the Billing Change Form.
BENEFEDS: FEDVIP and FLTCIP
BENEFEDS administers the enrollment and premium payment processes on behalf of the FEDVIP carriers and FLTCIP. BENEFEDS does not have claims information. Contact www.ltcfeds.com or your dental or vision plan carrier directly if you have questions about your coverage or claims.
If you're retiring under CSRS or FERS, FLTCIP and FEDVIP premiums can't be deducted from your annuity while you're receiving interim payments (sometimes referred to special pay). This means that until OPM finalizes your annuity, BENEFEDS can't deduct premiums from your annuity to pay your premiums. While you're receiving interim payments, you can pay your premiums by automatic bank withdrawal or direct bill. Once your annuity is finalized, BENEFEDS will begin deductions from your annuity.
For questions regarding your payroll or annuity deductions, call BENEFEDS Customer Service at 1-877-888-FEDS (1-877-888-3337) TTY 711.
Flexible Spending Accounts
The following Frequently Asked Questions will explain what happens to your FSA funds when you separate. This is a program for employees only, it does not continue into retirement.
What happens if I separate or retire before the end of the plan year?
The balances in your Health Care FSA, Limited Expense Health Care FSA and Dependent Care FSA are treated differently if you separate or retire before the end of the calendar year.
Your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement. There are no extensions. Any eligible health care expenses incurred prior to the date of separation will still be reimbursed but those incurred after the separation date are not reimbursable, even if you accelerated your allotments. If you used your entire elected amount before FSAFEDS has deducted it from your pay, you will not be responsible for the remaining allotments.
Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or the end of the calendar year, whichever comes first.
Please note: To take advantage of the grace period for your DCFSA, you must be actively employed and making allotments through Dec. 31 of the benefit period (plan year).
Example: A participant is enrolled in both a HCFSA and DCFSA for the benefit period but retires midway during the benefit year on July 1. The participant may only submit claims for health care expenses which are incurred prior to their July 1 separation date but can continue to incur dependent care expenses through Dec. 31 of that benefit year or until their balance is depleted. The participant would not be eligible for the grace period under their DCFSA.
If I separate or retire from service, can I receive my remaining HCFSA or LEX HCFSA balance?
No, you can only be reimbursed for the expenses incurred prior to the date of separation or retirement even if you have accelerated your allotments (FSA contributions).
You are not eligible for reimbursement even if there is still money in your Health Care FSA (HCFSA) or Limited Expense Health Care FSA (LEX HCFSA) to pay these expenses.
What if I accelerate my allotments and then decide to separate?
You can only be reimbursed for health care expenses incurred prior to the date of separation or retirement even if you have accelerated your allotments. You are not eligible for reimbursement even if there is still money in your Health Care FSA (HCFSA) or Limited Expense Health Care FSA to pay these expenses.
You can continue to use the remaining balance in your Dependent Care FSA to pay for eligible dependent care expenses until the end of the benefit period or until your account balance is depleted, whichever comes first.
NEXT STORY: Senate Dem reintroduces Equal COLA Act, and more
Groups.io Links:
You receive all messages sent to this group.
View/Reply Online (#3877) | Reply to Group | Reply to Sender | Mute This Topic | New Topic
Your Subscription | Contact Group Owner | Unsubscribe [prefander.leadersworkshop@blogger.com]
Belum ada komentar untuk "[TSPStrategy] What happens to my insurance when I leave the federal government?"
Post a Comment