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Frequently Asked Questions Insurance

What is the difference in order of precedence for deductions from pay between those who participate in premium conversion and those who opt-out?

FEHB premiums deducted from the pay of a participating employee are deducted BEFORE FICA and Federal income taxes. When an employee waives participation in premium conversion, FEHB premiums will continue to be deducted from the pay after FICA and Federal income taxes. In all cases, deductions for CSRS or FERS will continue to be made first.

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