By Reg Jones
The “no reduction” option
December 13th, 2010 | Assignment of benefits LIFE INSURANCE RETIREMENT
Q: Can you define the “no reduction” option? My understanding of it is this: For example, take a basic life insurance policy, prior to retirement, worth $100,000. At retirement, I can choose to keep paying for $100,000 coverage up to age 65 with the “no reduction” option. Is that correct, or is the coverage amount based on your retirement annuity, which would be much less ($58,000)?
A: The “no reduction” option allows you to preserve the face value of your insurance on the day you retire. It has no connection to the amount of your annuity.
Tracking down life insurance benefits
October 21st, 2010 | Assignment of benefits Eligibility LIFE INSURANCE
Q: My brother retired from the U.S. Postal Service a few years ago. He passed away a few weeks ago, and his wife asked the San Antonio post office how she could apply for his insurance. She was told that he had no insurance. He specifically told me that he did: I retired from civil service and have insurance, and my brother said that he had the same sort of coverage. If he has a claim it would be a great aid to his widow.
A: His widow should call the Office of Personnel Management’s Retirement Information Office at 888-767-6738 and report his death. Make sure she has his retiree identification number at hand. It begins with the letters “CSA.” They will know whether she is entitled to a survivor annuity and a benefit from the Federal Employees’ Group Life Insurance program. They will also provide her with the paperwork needed to file her claim.
Tags: Federal Employees' Group Life Insurance, FEGLI, insurance claims, LIFE INSURANCE, Office of Personnel Management, OPM, Postal Service, U.S. Postal Service, USPS
Transferring survivor benefits
June 17th, 2010 | Assignment of benefits LIFE INSURANCE POST-RETIREMENT RETIREMENT Survivor annuities Survivor benefits
Q: My wife died 13 years ago. How do I assign my survivor benefits to my common-law wife?
A: You can submit new designation-of-beneficiary forms: SF 2823 for Federal Employees Group Life Insurance; SF 2808 for the Civil Service Retirement System or SF 3102 for the Federal Employees Retirement System survivor annuity; and TSP-3 for your Thrift Savings Plan investments (available on the TSP website). Some of these benefits may only be available in a state that recognizes common-law marriages. Check with an attorney to make sure that your state is one of them.
Tags: annuity, Civil Service Retirement System, CSRS, Defense Department, Federal Employees Retirement System, FEGLI, FERS, marriage, survivor annuity, Survivor benefits, Thirft Savings Plan, TSP