This appendix answers some of the basic questions that new political appointees might ask about their eligibility for Federal health benefits, life insurance, and retirement coverage. It is intended primarily for first-time employees and employees (and annuitants) who are returning to Government service after a break in service of a year or more. This material supplements the information in other parts of the Transition Guidance. For more detailed information, please contact your agency's Human Resources Office.

1. Will I be eligible for Federal health benefits coverage?

Health benefits coverage depends on the type of appointment you receive. Generally, employees with permanent appointments are eligible to enroll for health benefits coverage, while employees with temporary appointments limited to 1 year or less are not eligible. However, if your appointment is designated as a "provisional appointment," you will be eligible for health benefits coverage. (Provisional appointments are used to fill positions that are known to be permanent with the expectation that the appointee will be converted to permanent status.)
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2. Will I be eligible for premium conversion if I enroll in a health benefits plan?

Premium conversion is a tax benefit. It allows an employee to allot a portion of salary back to the employer, which the employer then uses to pay the employee's contribution for Federal Employees Health Benefits (FEHB) coverage. The allotment is made on a pre-tax basis, which means that the money is not subject to Federal income, Medicare, or Social Security taxes. All employees in the executive branch of the Federal Government who are participating in the FEHB Program, and whose pay is issued by an executive branch agency, are eligible to have their FEHB premiums paid under the premium conversion plan. Also, individuals enrolled in the Program who are employed outside the executive branch, or whose pay is not issued by an agency of the executive branch, may be eligible if their employer agrees to offer participation in the plan.

3. If I am eligible for Federal health benefits coverage, do I need to take any action, or is coverage automatic?

Coverage is not automatic. You must enroll within 60 days after you become eligible, and select the plan in which you want to be covered. You will be able to choose from among several fee-for-service plans and health maintenance organizations.

4. Will I be eligible for Federal life insurance coverage?

Life insurance coverage also depends on the type of appointment you receive. Generally, employees with permanent appointments are eligible for life insurance coverage, while employees with temporary appointments limited to 1 year or less are not eligible. However, if your appointment is designated as a "provisional appointment," you will be eligible for life insurance coverage.
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5. If I am eligible for Federal life insurance coverage, do I need to take any action or is there automatic coverage?

If you are eligible for Federal life insurance coverage, you will have basic life insurance coverage automatically unless you waive it. If you want more than basic coverage, you must act to select one or more of three types of optional coverage within 31 days.

6. I am an annuitant. How will my health benefits and life insurance coverage be affected when I become reemployed in the Federal service?

That depends on the kind of appointment you have when you become reemployed (see Question 13) and other factors. If you are a reemployed annuitant, your coverage may be handled differently from other employees. Your Human Resources Office can provide the necessary information.
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7. Will I be eligible for retirement coverage?

That will depend on the type of appointment you receive. If you receive a permanent appointment, you will be eligible for retirement coverage. Also, a "provisional appointment" (see Question 1) will confer retirement coverage. Generally, if you receive a temporary appointment limited to 1 year or less, or if you are an intermittent employee, you will not be eligible for retirement coverage. Other less common appointments may also exclude you from coverage, so you should check with your employing agency on this point.
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8. If I am appointed to a position that does confer retirement coverage, what type of coverage will I have?

If this will be your first civilian Government service, you will be covered by the Federal Employees Retirement System (FERS), a three-tiered system consisting of Social Security benefits, a basic benefit plan, and a savings plan.

If, on the other hand, you have had previous civilian service in the Government, you may be covered, depending on the circumstances addressed in Questions 9 and 10, either by FERS or a combination of the Civil Service Retirement System (CSRS) and Social Security coverage called CSRS Offset. (Note: CSRS coverage without Social Security is available only to people who: (1) had only CSRS coverage; (2) return to CSRS-covered employment after a break in service of less than 1 year; and (3) are not required by law to have Social Security coverage in the new position.)
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9. What factors will determine the specific retirement plan by which I am covered?

If your previous Federal service was covered by FERS, your new appointment will automatically be covered by FERS. You will also be covered automatically by FERS if your previous civilian service totaled less than 5 years. Generally, FERS coverage also applies if none of your prior service was covered by CSRS (or the Foreign Service Retirement System).

If you are not automatically covered by FERS, you will be covered under the CSRS-Offset provision, and have an opportunity to elect FERS coverage within 6 months. Except as provided in the next question, this is true regardless of any election during your previous service.
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10. I was a senior official with special election opportunities during the 1987 FERS open season. What is the effect of the retirement coverage I elected at that time on my new appointment?

Whatever you elected then (FERS, CSRS, Offset, no coverage) will continue in your new appointment. However, you may elect FERS coverage within 6 months after your new appointment.
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11. I took a refund of my retirement contributions after my previous service. What effect will that have on my retirement coverage now?

None, but the amount of your eventual retirement benefits may be affected.

12. I am currently an annuitant. What will my retirement coverage be if I am reemployed as a senior official?

Reemployed CSRS annuitants, while generally exempt from Social Security coverage, are subject to Social Security coverage when reemployed as a senior official. (The term "senior official" is generally limited for this purpose to a Presidential appointee, noncareer member of the Senior Executive Service, a Federal judge, or a Member of Congress.) Consequently, CSRS annuitants reemployed as senior officials under circumstances in which the annuity continues have CSRS Offset coverage. However, you will have a 6-month window to elect FERS following reemployment. If you are a FERS annuitant, you will remain subject to FERS coverage upon reemployment.
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13. I am an annuitant. What happens to my annuity if I accept a position with the new Administration?

In most cases, you will continue to receive your annuity, but the amount of your annuity will be offset from your salary. However, your annuity would be terminated upon reemployment if: