§8714c Optional life insurance on family members

Summary

Allows the Office of Personnel Management to buy a group policy that gives eligible federal employees the option to add life insurance for family members (no accidental death or dismemberment cover). Under the Office’s rules and the other life-insurance rules in law, an employee may choose 1, 2, 3, 4, or 5 times the base amounts: $5,000 for a spouse and $2,500 for each child described under section 8701(d). An employee can cut back or stop this family coverage at any time. Coverage ends at the earlier of the employee’s death, the employee leaving federal service, or 12 months after pay stops. Temporary extensions and conversion to an individual policy are allowed under Office rules. If an employee retires on an immediate annuity or gets disability pay under chapter 81 and had this family insurance for at least the 5 years before retirement (or for the whole period it was available if less than 5 years), the coverage can continue. The full cost is taken from pay, annuity, or compensation, but after the calendar month the former employee turns 65 the coverage is free unless a special election under section 8714b(c)(3)(B) still applies. If an agency fails to withhold costs, it may waive collection if the person is not at fault, but the agency must still send the uncollected amount to the Office. Employees with too little pay can arrange to pay into the Employees’ Life Insurance Fund. Costs are set by the Office based on age groups. If a covered family member dies, the insurance amount in force is paid to the employee or, if the employee has died, to the person(s) who would get the employee’s group life insurance.