Title 5, Government Organization and EmployeesRelease 119-110
§8714c Optional Life Insurance on Family Members
Title 5 › PART III — EMPLOYEES › Subpart G — Insurance and Annuities › CHAPTER 87 — LIFE INSURANCE › § 8714c
Summary
The Office of Personnel Management can buy a group policy so federal employees who already have basic government life insurance can buy optional life insurance for family members. The coverage does not include accidental death or dismemberment. Employees may choose coverage in amounts equal to 1, 2, 3, 4, or 5 times $5,000 for a spouse and $2,500 for each child. An employee can reduce or stop this coverage at any time. The family coverage ends when the employee dies, leaves federal service, or 12 months after pay stops, but there are rules for short extensions and for converting to an individual policy. If an employee retires or becomes entitled to disability pay and had the family coverage for at least the 5 years before retirement (or for the full time it was available if less than 5 years), the coverage may continue under retiree rules. The full cost is taken from pay, annuity, or compensation. After the month the former employee turns 65, the coverage is free unless the employee made a specific election that keeps paying the cost after 65. If an agency fails to withhold premiums, it may waive collecting them if the person is not at fault and recovery would be unfair, but the agency must still send an equal amount to the Employees’ Life Insurance Fund. An employee with too little pay can arrange to pay premiums directly to keep coverage. The Office sets the premium rates by age groups. If a covered family member dies, the amount in force on the date of death is paid to the employee, or if the employee died first, to the person(s) entitled to the employee’s group life insurance.
Full Legal Text
Title 5, §8714c
Government Organization and Employees, Source: USLM XML via OLRC
(a)Under the conditions, directives, and terms specified in sections 8709 through 8712 of this title, the Office of Personnel Management, without regard to section 6101(b) to (d) of title 41, may purchase a policy which shall make available to each employee insured under section 8702 of this title amounts of optional life insurance (without accidental death and dismemberment insurance) on the employee’s family members.
(b)(1)The optional life insurance on family members provided under this section shall be made available to each eligible employee who has elected coverage under this section, under conditions the Office shall prescribe, in multiples, at the employee’s election, of 1, 2, 3, 4, or 5 times—
(A)$5,000 for a spouse; and
(B)$2,500 for each child described under section 8701(d).
(2)An employee may reduce or stop coverage elected pursuant to this section at any time.
(c)(1)Except as otherwise provided in this subsection, the optional life insurance on family members shall stop at the earlier of the employee’s death, the employee’s separation from the service, or 12 months after discontinuance of pay, subject to a provision for temporary extension of life insurance coverage and for conversion to individual policies of life insurance under conditions approved by the Office.
(2)In the case of any employee who retires on an immediate annuity or who becomes entitled to receive compensation under subchapter I of chapter 81 of this title because of disease or injury to the employee and who has had in force insurance under this section for no less than—
(A)the 5 years of service immediately preceding the date of retirement or entitlement to compensation, or
(B)the full period or periods of service during which the insurance was available to the employee, if fewer than 5 years,
optional life insurance on family members may be continued under the same conditions as provided in section 8714b(c)(2) through (4).
(d)(1)During each period in which the optional life insurance on family members is in force the full cost thereof shall be withheld from the employee’s pay. During each period in which an employee continues optional life insurance on family members after retirement or while in receipt of compensation under subchapter I of chapter 81 of this title because of disease or injury to the employee, as provided in subsection (c) of this section, the full cost shall be withheld from the annuity or compensation, except that, beginning at the end of the calendar month in which the former employee becomes 65 years of age, the optional life insurance on family members shall be without cost to the employee. Notwithstanding the preceding sentence, the full cost shall be continued after the calendar month in which the former employee becomes 65 years of age if, and for so long as, an election under this section corresponding to that described in section 8714b(c)(3)(B) remains in effect with respect to such former employee. Amounts so withheld shall be deposited, used, and invested as provided in section 8714 of this title and shall be reported and accounted for together with amounts withheld under section 8714a(d) of this title.
(2)If an agency fails to withhold the proper cost of optional life insurance on family members from an individual’s salary, compensation, or retirement annuity, the collection of amounts properly due may be waived by the agency if, in the judgment of the agency, the individual is without fault and recovery would be against equity and good conscience. However, if the agency so waives the collection of any unpaid amount, the agency shall submit an amount equal to the uncollected amount to the Office for deposit to the Employees’ Life Insurance Fund.
(3)Notwithstanding paragraph (1), an employee who is subject to withholdings under this subsection and whose pay, annuity, or compensation is insufficient to cover such withholdings may nevertheless continue optional life insurance on family members if the employee arranges to pay currently into the Employees’ Life Insurance Fund, through the agency or retirement system that administers pay, annuity, or compensation, an amount equal to the withholdings that would otherwise be required under this subsection.
(e)The cost of the optional life insurance on family members shall be determined from time to time by the Office on the basis of the employee’s age relative to such age groups as the Office establishes under section 8714a(e) of this title.
(f)The amount of optional life insurance which is in force under this section on a family member of an employee or former employee on the date of the death of the family member shall be paid, on the establishment of a valid claim by the employee, to such employee or, in the event of the death of the employee before payment can be made, to the person or persons entitled to the group life insurance in force on the employee under section 8705 of this title.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2011—Subsec. (a). Pub. L. 111–350 substituted “section 6101(b) to (d) of title 41” for “section 5 of title 41”. 1998—Subsec. (b). Pub. L. 105–311, § 8(a), amended subsec. (b) generally. Prior to amendment, subsec. (b) read as follows: “The optional life insurance on family members provided under this section shall be made available to each eligible employee who elects coverage under this section, under conditions the Office shall prescribe, in the amount of $5,000 for a spouse and $2,500 for each child described in section 8701(d). The employee may stop coverage elected under this section at any time.” Subsec. (c)(2). Pub. L. 105–311, § 8(b)(1), substituted “section 8714b(c)(2) through (4)” for “section 8714b(c)(2) of this title”. Subsec. (d)(1). Pub. L. 105–311, § 8(b)(2), inserted before last sentence “Notwithstanding the preceding sentence, the full cost shall be continued after the calendar month in which the former employee becomes 65 years of age if, and for so long as, an election under this section corresponding to that described in section 8714b(c)(3)(B) remains in effect with respect to such former employee.” Subsec. (d)(3). Pub. L. 105–311, § 6(4), added par. (3). 1986—Subsec. (c)(1). Pub. L. 99–336 amended Pub. L. 98–353, § 206, generally. See 1984 Amendment note below. Pub. L. 99–335 amended par. (1) generally, effective Jan. 1, 1977. Prior to such
Effective Date
, par. (1) read as follows: “Optional life insurance on family members shall stop at the earlier of the employee’s death, the employee’s separation from the service, 12 months after discontinuance of pay, or the employee’s entry on active duty or active duty for training, as provided in section 8706(a) and 8706(c) of this title, subject to provision for a 31-day temporary extension of insurance coverage and for conversion to individual policies under conditions approved by the Office. Justices and judges of the United States described in section 8701(a)(5)(ii) and (iii) of this chapter are deemed to continue in active employment for purposes of this chapter.” 1984—Subsec. (c)(1). Pub. L. 98–353, § 206, as amended generally by Pub. L. 99–336, inserted sentence which deemed justices and judges described in section 8701(a)(5)(ii) and (iii) of this chapter to continue in active employment for purposes of this chapter.
Statutory Notes and Related Subsidiaries
Effective Date
of 1998 AmendmentAmendment by section 6(4) of Pub. L. 105–311 effective on the first day of the first applicable pay period beginning on or after Oct. 30, 1998, and amendment by section 8 of Pub. L. 105–311 effective on the first day of the first pay period which begins on or after the 180th day following Oct. 30, 1998, or on any earlier date that the Office of Personnel Management may prescribe, see section 11(d), (f) of Pub. L. 105–311, set out as a note under section 8701 of this title.
Effective Date
of 1986 AmendmentAmendment by Pub. L. 99–335 effective Jan. 1, 1987, see section 702(a) of Pub. L. 99–335, set out as an
Effective Date
note under section 8401 of this title.
Effective Date
of 1984 AmendmentAmendment by Pub. L. 98–353, § 206, as amended generally by Pub. L. 99–336, § 7(1), applicable to any justice or judge who retires under 28 U.S.C. 371(a) or (b) or 372(a) on or after January 1, 1982, see section 207 of Pub. L. 98–353, as amended generally by Pub. L. 99–336, § 7(2), set out as a note under section 8706 of this title.
Effective Date
Section effective on first day of first pay period which begins on or after 180th day following Oct. 10, 1980, or on any earlier date that Office may prescribe which is at least 60 days after Oct. 10, 1980, and shall have no effect in case of an employee who died, was finally separated, or retired before
Effective Date
, see section 10(d) of Pub. L. 96–427 set out as an
Effective Date
of 1980 Amendment note under section 8701 of this title.
Reference
Citations & Metadata
Citation
5 U.S.C. § 8714c
Title 5, Government Organization and Employees
Last Updated
Sep 22, 2026
Release point: 119-110