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Review the new 2014 Federal Employees' Group Life Insurance (FEGLI) Handbook
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During the first 12 months of LWOP, your FEGLI coverage continues. If you die during the first 12 months, OFEGLI uses the salary at the time of death to compute the benefit. For example:
Stan had Basic insurance only. He went on LWOP February 1, 2003. His salary at that time was $18,449. In September 2003, he got a within-grade increasing his salary to $20,849.00. He died November 15, 2003. Since he died during the first 12 months of LWOP, life insurance is payable. The basic salary used to compute the benefit is $20,849.00.
Please report it here: https://apps.opm.gov/retire/death/death.cfm. If you are unable to use the website, you can report it by contacting OPM’s Retirement Office at 1-888-767-6738 or firstname.lastname@example.org. The phone lines are open from 7:30 am to 7:45 pm (Eastern Standard Time). It is a busy phone number so we encourage you to call early in the morning or after 5:00 pm when the phone lines are less busy.
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.
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