USPS Retirement Information

FEDERAL EMPLOYEE GROUP LIFE INSURANCE (FEGLI)
I have put together some information that may be interesting for many employees. Most employees have no idea what they are currently paying for life insurance or whether or not those rates will change over time. Once they elect to take the amount of coverage that they wanted, they fail to look into what they are paying and how those rates will change over the course of their career, nor do they comparison shop for better rates.
During orientation, the U.S. Postal Service provides employees the option to select health and life insurance for self and family through the Federal Employee Health Benefits (FEHB) and the Federal Employee Group Life Insurance (FEGLI). Most employees are aware that in order to carry your (FEHB) and (FEGLI) benefits into retirement, you have to be enrolled for the five-years immediately preceding retirement (with a few exceptions), but there are also differences between the two. The main difference is that you can enroll in the FEHB every year, but the FEGLI open season varies depending on when the Office of Personnel Management (OPM) announces it.
I have researched the current FEGLI rates. The rates listed below are for an employee at Level 6 Step O and was calculated on January 24, 2010 through the OPM web site.
Your Basic coverage as an employee is $56,000 and at no cost to you.
NOTE: Employees under 45 receive extra monetary benefit based on age.
The Extra Benefit in addition to the $56,000.00 base on age is:
35 and Under $56,000.00
36 $50,400.00
37 $44,800.00
38 $39,200.00
39 $33,600.00
40 $28,000.00
41 $22,400.00
42 $16,800.00
43 $11,200.00
44 $5,600.00
FEGLI has three options to chose from:
Option A - Standard (Gives an additional $10,000.00 of coverage)
Under 35   $0.30 Per Pay Period
Age 35-39 $0.40 Per Pay Period
Age 40-44 $0.60 Per Pay Period
Age 45-49 $0.90 Per Pay Period
Age 50-54 $1.40 Per Pay Period
Age 55-59 $2.70 Per Pay Period
Age 60-64 $6.00 Per Pay Period
Age 65-69 $6.00 Per Pay Period
Age 70-74 $6.00 Per Pay Period
Age 75-79 $6.00 Per Pay Period
Over 80      $6.00 Per Pay Period
Option B - Additional (Number of Multiples = 5, Gives an additional $270,000.00 of coverage)
Under 35     $8.10 Per Pay Period
Age 35-39 $10.80 Per Pay Period
Age 40-45 $16.20 Per Pay Period
Age 45-49 $24.30 Per Pay Period
Age 50-54 $37.80 Per Pay Period
Age 55-59 $75.60 Per Pay Period
Age 60-64 $162.00 Per Pay Period
Age 65-69 $194.40 Per Pay Period
Age 70-74 $324.00 Per Pay Period
Age 75-79 $486.00 Per Pay Period
Over 80     $648.00 Per Pay Period
Option C - Family Coverage (Number of Multiples = 5, Gives $25,000.00 for spouse, $12,500.00 for eligible children)
Under 35      $1.35 Per Pay Period
Age 35-39    $1.70 Per Pay Period
Age 40-45    $2.30 Per Pay Period
Age 45-49    $3.00 Per Pay Period
Age 50-54    $4.50 Per Pay Period
Age 55-59     $7.25 Per Pay Period
Age 60-64   $13.00 Per Pay Period
Age 65-69   $15.00 Per Pay Period
Age 70-74   $17.00 Per Pay Period
Age 75-79   $22.50 Per Pay Period
Over 80       $30.00 Per Pay Period
You can carry over the coverage when you retire as long as you have had the current level of multiples for 5 years.
If you have no idea of what coverage you currently have, you can find it by looking on your pay stub for IN _ _ _ and this will show exactly the amount that you are paying each pay period for this insurance.
Understand, the older you get, your premiums will become more expensive per pay period. Will you be able to afford those premiums or will you have to reduce the amount of coverage? Will you be able to cover the premiums upon retirement?
I suggest that all employees look for other life insurance alternatives that may save them money. Some policies build up a cash value or give yearly rebate checks. Shopping around for a private term insurance policy could be much less expensive as long as you are insurable.
I have found a couple of places to begin your search for better rates.
1) WAEPA - Their web site offers quotes versus FEGLI at <http://www.waepa.org/>
2) SAMBA - Their prices per $1000 of coverage is on their web site at <http://www.sambaplans.com/life.shtml>
You may cancel or drop your FEGLI coverage at any time. How do you cancel your FEGLI insurance after you find a better plan? You have to fill out form SF 2817 and you can find this form at <http://www.opm.gov/forms/pdf_fill/sf2817.pdf>
Good luck in your search!

Sam Wood
President - Southwest Florida Area Local / APWU