Posted on Sunday, 12th September 2021 by

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The Office of Personnel Management (OPM) announced changes in FEGLI premium rates effective the first pay period beginning on or after October 1, 2021. These include changes to premium rates for Employee Basic Insurance, Option A (most age bands), Option B (most age bands), Option C (most age bands), and Post-Retirement Basic Insurance. The Basic Rate increased slightly. However, The good news is that many rates actually decreased! This is a great time to reevaluate your insurance needs; an open enrollment period often follows a rate increase.

Basic Changes (Annual basic pay, rounded up to the next even $1,000, plus $2,000)

The basic option premiums per thousand dollars of coverage increased slightly from $0.15 to $0.16 bi-weekly. An annuitants Basic Insurance costs are determined by the option you select when you turn 65 and take either a 75% reduction, a 50% reduction or decide to keep full coverage in retirement. If you elect no reduction when you retire the rate is $2.5967 before age 65 and $2.25 after age 65. The 75% reduction before age 65 is $0.3467 and reduces to no cost after 65. The 50% reduction will now cost $1.0967 before and $0.75 after age 65.

Option A Changes ($10,000 of Insurance)

Option A Standard Insurance is a fixed $10,000 amount. When you retire it reduces 2% a month, $200, starting at age 65 until it reduces to $2,500. It is free starting at age 65. The rate for <35 and 60+ stayed the same, all of the rates from age 35 to 59 decreased substantially. The bi-weekly rate for those 45-49 decreased from $0.70 to $0.60 and for those 60+ it remained $13.00 monthly.  At age 45 you would only pay $0.60 a pay for $10,000 in coverage starting this October.

Option B Changes (Salary Multiples) Up to 5 times your salary

The amount of coverage is determined by multiplying your final annual basic pay rate rounded to the next higher thousand by the number of Option B multiples that were in effect for the five years of service immediately before your retirement or the entire periods of service during which these multiples were available to you, if less than five years

The only age group that increased for Option B was the 80+ group. The old rate was $5.72 monthly per $1,000 of coverage; the new rate is $6.240 per thousand.  All of the other age group rates dropped as much as 10 percent or more. Even with these decreased premiums under age 80, the cost for Option B multiples more than doubles from $0.18 bi-weekly per thousand dollars of coverage at 55-59 to $0.40 bi-weekly per thousand at age 60-64. In retirement it will cost an annuitant $3.90 per $1,000 of coverage monthly from age 75-79 and that increases to $6.24 monthly per $1,000 in coverage 80 and over!

For example, if your base pay was $60,000 when you retired and had 5 multiples, your total coverage would be $300,000, 5 x $60,000. Premiums continue after age 65 and the current premiums are $1.04 per thousand dollars of coverage at age 65. In this example the annuitant would be paying $315 per month to retain this coverage. From age 70 to 74 the premiums increase to $1.863 and the monthly premium would increase to $558.90 per month. Premiums increase again to $3.90 per thousand from age 75 to 79, and top out at $6.24 from age 80 on. At age 80 the annuitant would be paying $1872 a month at current premium levels! It should be noted that premiums are subject to change. View our FEGLI rate charts for the new rates. provides a 27-page federal employees retirement planning report that does help those who purchase their report find lower cost private insurance for Option B multiples if desired.

Option C Changes (Up to 5 multiples) $5,000 per spouse and $2,500 for each child under 22

When you retire you elect either a full reduction benefit or no reduction. If you elect full reduction your multiple coverage will stay in force until you reach age 65. At age 65 the premiums stop and your coverage reduces 2% a month for 50 months when coverage ends. All of the C Family Option premiums decreased except for those in the 75-79 and the 80+ groups. The maximum you would pay for each multiple increased to $16.90 at 80+.  This coverage would cost a worker $2.43 bi-weekly for each multiple. If you carried three multiples ($15,000 of insurance for a spouse) into retirement it would cost $6.13 per multiple or $18.39 per month at age 65-69.

Review our updated rate tables to see how much your premiums will change.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change. The advice and strategies contained herein may not be suitable for your situation and this service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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