Fact Sheet

The Federal Employees’ Group Life Insurance (FEGLI) Program
Fact Sheet for Tribal Employees
Overview
The FEGLI Program is the largest group life insurance program in the world.
The FEGLI Program covers over 4 million Federal employees and retirees, and many of
their family members.
The FEGLI Program provides term life insurance at group rates with payroll deductions
through your employer or tribal organization. Benefits are paid if you die or become
dismembered while insured, and, if you are enrolled in Option C, if a family member
dies.
Tribal employees are eligible to enroll in the FEGLI Program for as long as they remain
tribal employees. After the initial enrollment period, opportunities to enroll are limited.
These opportunities are specific qualifying life events, via medical underwriting, or an
Open Season (which is rare). Coverage does not continue after employment ends with a
tribal employer, nor into retirement from employment with a tribal employer.
Coverage through FEGLI does not build up any cash value or paid-up value.
The Office of Federal Employees’ Group Life Insurance (OFEGLI), an administrative
unit of MetLife, is responsible for adjudicating and paying claims under the FEGLI
Program.
The funds to pay claims are held by the Federal government in the U.S. Treasury
Employees’ Life Insurance Trust Fund.
FEGLI coverage may be converted to an individual (non-group) cash-value type of life
insurance policy when FEGLI group coverage terminates (except if you voluntarily
cancel coverage).
Types of Insurance
There are two types of FEGLI life insurance, Basic and Optional. You cannot purchase
Optional insurance unless you also purchase Basic.
Basic equals your annual salary rounded up to the next even $1,000, plus $2,000.
Basic also includes Accidental Death and Dismemberment coverage at no additional cost
and “Extra Benefit” coverage for enrollees under age 45. The Extra Benefit doubles the
amount payable for Basic if you are age 35 or younger when you die. This extra amount
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decreases each year by 10% until there is no “extra” coverage payable if you die at age
45 or older.
Optional includes three types of coverage:
o Option A-Standard ($10,000 of life insurance);
o Option B-Additional: you choose from one to five times your annual salary
(rounded up to the next $1,000 for each multiple);
o Option C- Family: you choose from one to five multiples of coverage. Each
multiple equals $5,000 for a spouse and $2,500 for each eligible dependent child.
Total maximum coverage equals $25,000 for spouse and $12,500 for each eligible
child.
o Please note that you, not your tribal employer, are responsible for ensuring that
the coverage you elect and the premiums your employer withholds from your pay
for that coverage are correct, and that the beneficiary (ies) you designate to
receive FEGLI benefits after your death (or, the statutory order of precedence, if
you choose not to designate a beneficiary) accurately reflect your intentions.
Premium Cost
Tribal employees will pay up to two-thirds of the total premium cost of Basic insurance.
The tribal employer will pay a minimum of the remaining one-third of the premium cost
of Basic insurance. In addition, the tribal employer will pay an administrative cost per
enrollee fee based on administrative costs and expected enrollment.
The administrative fee is undetermined at this time. However, the current Federal
Employees Health Benefits (FEHB) Program fee is $15.15 per enrollee, so it is likely the
FEGLI administrative fee will be, at a minimum, similar to the FEHB fee, and possibly
higher.
Tribal employees will pay the full premium cost of Optional insurance; the cost depends
on the tribal employee’s age, salary, and level of coverage elected for each Option, as
appropriate.
Tribal employees FEGLI premium rates are the same as for Federal employees. Current
rates are enclosed and can be found online at http://www.opm.gov/insure/life/rates/em_rates.asp.
NOTE: these rates are subject to change periodically in the future, and do not include the
administrative cost (to be determined by OPM) associated with FEGLI for tribal
employees.
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Tribal Employer Obligations/Administrative Responsibilities
The tribal employer electing to access the FEGLI Program and to offer it to its eligible tribal
employees may not offer any other group life insurance to its tribal employees.
Tribal employers must make FEGLI information and counseling available to tribal employees.
This counseling must include how and when coverage can be elected, changed, assigned, or
converted after employment ends. Counseling must also address how to designate a beneficiary,
how to file a designation to give it effect under FEGLI, the effect of an invalid or superseding
beneficiary designation, what the statutory order of precedence is if no beneficiary is designated,
and the proper manner in which to file a court order to give it effect under FEGLI. OPM
encourages tribal employers to develop counseling programs which meet the needs of their tribal
employees. OPM will provide the necessary technical assistance on insurance benefits to tribal
employers upon request.
Tribal employers are responsible for:
Determining tribal employees' eligibility for coverage under OPM's regulations, and
providing to the paymaster a current list of covered tribal employees on a monthly basis.
The tribal employee list will include, among other demographic information: information
on enrollee age, salary (including any changes during the year), and level of coverage at
each option purchased
Twice a year, reporting the number of tribal employees covered under FEGLI - in the
February and August pay periods. The report includes the total number of tribal
employees from whom withholdings and contributions were made for each type of
coverage in the respective pay period, as well as the number of covered tribal employees
in non-pay status from whom no withholdings were made;
Processing and recording FEGLI elections and cancellations accurately;
Verifying prior FEGLI elections for tribal employees with previous FEGLI tribal
employee coverage;
Advising tribal employees of the requirements for purchasing coverage after the initial
enrollment period;
Informing tribal employees of the right to convert FEGLI coverage to an individual (nongroup) cash-value type of life insurance policy at the time FEGLI group coverage ends,
other than by voluntary cancellation;
Withholding premiums from tribal employees’ pay and paying a minimum tribal
employer contribution equal to one-third the cost of Basic;
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Paying an administrative cost per tribal employee enrolled in FEGLI;
Sending and reporting the correct amount of aggregated premiums (i.e. tribal employee
withholdings and tribal employer contributions, for all enrolled tribal employees),
together with an administrative fee per enrollee, to the paymaster. The paymaster will
electronically forward the premium payment to the Government;
Reimbursing the Federal Employees’ Life Insurance Fund maintained in the U.S.
Treasury upon discovery of an underpayment of premiums, regardless of the reason for
the underpayment.
Providing due process rights to tribal employees (or their beneficiaries) in the event the
tribal employer seeks recovery of the tribal employee’s share of premium underpayments.
Maintaining FEGLI records;
Making FEGLI forms available to tribal employees;
Issuing necessary forms, descriptive booklets, and certifications;
Certifying coverage when loss of entitlement to FEGLI coverage occurs (this does not
include voluntary employee cancellation), and facilitating a required dual certification by
forwarding to the paymaster for the 2nd certification;
Certifying coverage at death/dismemberment (including 2nd certification-see above) and
providing all FEGLI documentation to OFEGLI;
Providing general FEGLI Program information and counseling;
Giving assistance to persons filing claims;
Providing prepayment verification to OFEGLI when requested;
Maintaining designation of beneficiary forms, assignments, and court orders;
Establishing an independent review panel to perform reconsiderations of initial decisions
regarding FEGLI eligibility upon a tribal employee's written request; and
Agreeing that records of tribal employee coverage elections and premium withholdings
may be subject to a periodic audit.
Tribal Employee Responsibilities
Familiarizing yourself with the aspects of the FEGLI Program that affect you, such as
how and when coverage can be elected, changed, or assigned, as well as learning how to
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designate a beneficiary, the effect of an invalid or superseding beneficiary designation,
what the statutory order of precedence is if no beneficiary is designated, and the proper
manner in which to file a court order to give it effect under FEGLI.
You are responsible for deciding the level of coverage you should elect, and for making
that election. You are responsible for your share of the cost of the coverage.
You are responsible for paying the correct amount of premiums. If there is an
underpayment of your share of FEGLI premiums, you are responsible for reimbursing the
Fund through your tribal employer.
You are responsible for filing a designation of beneficiary form with your tribal employer
when the order of precedence does not meet your needs. You are responsible for
updating your current designation on file as necessary, for example after a divorce or
when you have another child. If you choose to designate a beneficiary, the designation
form must be signed by you, your signature must be witnessed by two witnesses who also
must sign and provide their current addresses, and the designation form must be received
by your tribal employer before you die for your designation to be valid.
Knowing where your agency human resources or personnel office is located, attending
information and counseling sessions regarding FEGLI coverage and rules, and knowing
whom to contact if you have a question about your FEGLI coverage; and
Knowing when your FEGLI coverage terminates, and requesting conversion on a timely
basis (if you wish to convert your group FEGLI coverage to an individual policy). Any
insurance policy purchased under the conversion privilege is a private business
transaction between you and the insurance company. The cost of the individual policy is
determined by the insurance company and is based on your age and class of risk. You pay
100% the cost of conversion coverage-there is no tribal employer contribution. Since you
will no longer be part of the group contract, the premium payments may be much higher
than the FEGLI premiums.

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