USPS: OPM Announces Updates to FEGLI

October 2021
The Office of Personnel Management (OPM) recently announced that effective October 1, 2021, FEGLI premium rates will change for some types of coverage. Premium rates for Basic Insurance for employees and Post-Retirement Basic Insurance with 50% Reduction and No Reduction will increase. Most premium rates for Option A, Option B, and Option C will decrease. Premium rates for older age bands of Options B and C will increase. Please visit the Federal Register to access the notice of these recent FEGLI changes: The FEGLI premium rates will be updated on the FEGLI website ( during October 2021.

FEGLI premium rates are evaluated based on program experience in accordance with FEGLI statutes and OPM’s Annual FEGLI Rate Review Process. The premium rates in the FEGLI program represent estimates of premium income necessary to pay future expected benefits costs. The rates for all coverage categories are specific to the experience of the FEGLI group and are not based on mortality rates within the general population. Actuarial analysis of changing mortality rates makes periodic premium adjustments necessary.

OPM has completed a study of funding and claims experience within the FEGLI Program. Based on this updated actuarial analysis of actual claims experience, OPM has determined that changes are required to Employee Basic, Option A, Option B, Option C, and Post-Retirement Basic Insurance premiums. These changes reflect updated mortality and claims rates from actual program experience within each FEGLI category. The legislative structure of the FEGLI Program assumes that OPM sets premium rates for each age band independently of the other bands so that each age band is financially self-supporting.

The Office of Personnel Management will notify affected annuitants directly via OPM’s Office of Retirement Services. The FEGLI premium rates will be maintained on the FEGLI website: healthcare-insurance/ life-insurance/

USPS Retirement E-Newsletter – October 2021

Source: KeepingPosted – Information for USPS Retirees

Leave a Reply

Required fields are marked *