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Option C — Family Insurance in Retirement

Number of Option C multiples you wish to continue at age 65 with No Reduction

The amount of Option C insurance you carry into retirement is determined by the number of Option C multiples that were in effect for the five years of service immediately before your retirement, or the entire periods of service during which this coverage was available to you, if less than five years. To determine the amount of insurance on your spouse, multiply $5,000 by the number of Option C multiples you continued in retirement. For coverage on your eligible children, multiply these multiples by $2,500.

For example, if you elect to continue three Option C multiples into retirement, that means if your spouse dies, you would receive $15,000 (3 times $5,000). If one of your eligible dependent children dies, you would receive $7,500 (3 times ($2,500).

At the time of retirement, you elect how many Option C multiples you want to carry into retirement. In addition, you elect if you want Full Reduction or No Reduction for each multiple. For example, an employee who has three multiples can elect to have two multiples with Full Reduction and one multiple with No Reduction. "Mixed elections" are allowed.

  • Full Reduction — If you choose Full Reduction, coverage is free after you turn age 65 or retire (if later). Effective on the month after the month you become age 65 or retire (if later), the value of your Full Reduction Option C multiples will reduce by 2% of the pre-retirement amount per month for 50 months, at which time coverage on those multiples will end.
  • No Reduction — If you choose No Reduction, you continue to pay the premium for your age group for the No Reduction multiples for life or until you change your election on those multiples or you otherwise discontinue your coverage. If you choose No Reduction, you can change to Full Reduction at any time.

The cost of Option C -Family insurance depends on your age, in five year age brackets and the number of multiples. As a retiree, you pay the same rates for Option C as employees do until you reach age 65. When you have a birthday that moves you to another age group, the change in premiums will be effective at the beginning of the month following your birthday, and will be reflected in the annuity payment that you receive the following month.

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