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The reductions start at the beginning of the 2nd month after your 65th birthday or the beginning of the 2nd month after your retirement date, whichever is later.
Pierre retired December 31, 1999. He will turn 65 on March 15, 2005. The reductions for his Basic and Optional insurance (if applicable) will start May 1, 2005.
Here's another example:
Selena was 67 years old when she retired on December 31, 1999. Since she was already past 65 when she retired, the reductions for her Basic and Optional insurance (if applicable) will start February 1, 2000.
Yes. If you meet the five-year requirement when your reemployment terminates, you will be able to continue your Option B. An example of this may help you to understand.
Gabriela had Basic since she was first employed with the Federal Government and Option B, two multiples, since March 1991. She retired in June 1993. She was not able to continue her Option B. She was reemployed as a reemployed annuitant in June 1996. She elected Option B, two multiples as an employee. She worked until December 1999. She is now eligible to continue her Option B, 2 multiples, into retirement because she has had it for the five years of service immediately preceding her separation in 1999.
If you are under age 65 when you retire, you will continue to pay premiums for your Basic and Optional insurance at least until you turn 65. Your retirement system will withhold the premiums from your annuity each month.
When you retire, you make reduction choices that determine whether your FEGLI life insurance (and premiums) reduce beginning at age 65 or when you retire, whichever is later:
Reductions begin the second month after you turn 65 or the second month after you retire, whichever is later. If you do not submit a Continuation of Life Insurance (SF 2818) to your human resources office before you retire, your Basic will be defaulted to 75% Reduction, and your Option B and Option C will be defaulted to Full Reduction.
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