50% FEGLI Reduction
Now that we have a better and clearer understanding of the 75 percent reduction election, let’s talk about the 50 percent reduction election under the same time periods.
If you elected the 50 percent reduction under your BASIC life insurance, the face value with begin to decrease at 1 percent every month also beginning with the second month after you reach age 65 or your retirement date or whichever is later.
- Also Read: 7 Ways the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) Could Impact Your Social Security Benefits
- Also Read: TSP Management Strategies Federal Employees Are Using to Retire Comfortably
- Also Read: 4 Ways Medicare Could Affect Postal Employees’ Health Coverage and Out-of-Pocket Costs in Retirement
The only other FEGLI reduction election you can make outside of the 75 and 50 percent elections is NO REDUCTION. If you chose the NO REDUCTION election, the full face value or the original amount of your BASIC life insurance will remain the same even when you reach age 65. Premiums are withheld from your annuity starting at retirement until the end of your life to take care of the additional coverage.
I think we can exhale and get ready to discuss our reduction election choices for dates impacting the majority of federal and postal employees who retired after December 31, 1989, and going forward.
For more information on FEGLI read this
P. S. Always Remember to Share What You Know.
RELATED TOPICS – More Federal and Postal Insurance Information
Federal Employees Health Benefits (FEHB)
Federal Flexible Spending Account (FSAFEDS)
Federal Long Term Care Insurance Program (FLTCIP)
Federal Employees and Medicare
Federal Employee Dental and Vision Insurance Program (FEDVIP)
