525 Special Circumstances Affecting Health Insurance Coverage

 

Note:

For additional information on subject matter in 525.1 and 525.2, see the Office of Personnel Management’s Federal Employees Health Benefits Handbook at https://www.opm.gov/healthcare-insurance/healthcare/reference-materials/fehb-handbook.

525.1 Office of Workers’ Compensation Programs

525.11 Requirements to Continue Enrollment
525.111 Employee

Office of Workers’ Compensation Programs (OWCP), an office within the U.S. Department of Labor, is responsible for determining employees’ eligibility to continue health benefits enrollment if employees are receiving workers’ compensation. The following rules apply:

  1. Employees’ health benefits enrollment (and coverage of family members under a family enrollment), as well as enrollment of surviving beneficiaries, continue if employees enter on the compensation rolls of the OWCP, provided they meet the following requirements, according to the U.S. Department of Labor:
    1. The employee is receiving compensation (which OWCP determines).
    2. The employee is unable to return to duty (which OWCP determines).
  2. If the employee meets the requirements under 525.111a, while receiving compensation, the employee may continue enrollment during the first 365 days of leave without pay (LWOP). After that period, the employee must meet participation requirements for continuing enrollment after retirement: continuous enrollment (or coverage as a family member) in any FEHB plan(s) for the 5 years of service immediately before the date compensation starts, or for the full period(s) of service since the employee’s first opportunity to enroll (if less than 5 years).
  3. Example: An enrollee was for a time covered as a family member under the Uniformed Services Health Benefits Program.

525.112 Survivor

Enrollment of a deceased employee continues for surviving family members if the following requirements are met:

  1. The deceased employee was enrolled in Self Plus One or Self and Family at the time of death.
  2. At least one of the covered family members receives compensation as a surviving beneficiary under the Federal Employees’ Compensation Act.

OWCP determines whether any survivors are eligible and wish to continue the enrollment, and continues or terminates the enrollment as appropriate. If survivors elect to receive survivor annuity in lieu of compensation, OWCP transfers the enrollment to the Office of Personnel Management (OPM) for processing.

525.12 Transfer of Enrollment
525.121 Transfer to OWCP

HRSSC transfers an employee’s enrollment to OWCP when one of the following occurs:

  1. OWCP requests the transfer;
  2. The employee has been on leave for 10 consecutive months without pay status, and OWCP has not requested transfer; or
  3. The employee separates from service before OWCP requests the transfer.

Until the enrollment transfers, the Postal Service treats the employee receiving compensation, but no salary, as any other employee in nonpay status, for health benefits purposes. Enrollment continues up to and including 365 days. Then HRSSC terminates enrollment if the employee is not eligible to be transferred to OWCP.

525.122 Transfer Back to Employing Office

When an employee who transferred to OWCP returns to pay status, OWCP transfers the employee’s enrollment to the employing office. OWCP will transfer the enrollment by letter, transmitting the health benefits documentation and providing the date compensation ended.

If the employee is eligible for continued coverage, the enrollment transfer will include a completed SF 2810, Notice of Change in Health Benefits Enrollment. The effective date of the transfer is the day after compensation terminated. If the employee is not eligible for continued coverage, HRSSC will complete a SF 2810, terminating the enrollment effective on the date that compensation ended.

525.13 Withholding and Contribution by OWCP
525.131 Effective Dates

Whether or not OWCP requests enrollment transfer, OWCP makes health benefits withholdings and contributions from the date compensation began, or the date following that on which the employing office withholdings and contributions ceased, whichever is later. OWCP makes no withholdings or contributions when an employee receives compensation for less than 29 days.

However, the employee is still responsible for payment of the premiums. Withholdings and contributions cease when an enrollment is terminated because the person has been in nonpay status for 365 days. After that period, the employee is not eligible to continue enrollment.

525.132 Health Benefits Refund Program

The following provisions apply:

  1. Explanation. The Health Benefits Refund Program is designed to reimburse injured employees for an overdeduction of health benefits premiums by the OWCP. For the first year of compensable disability, OWCP deducts health benefits premiums at the Postal Service rate. Thereafter, the deduction is made at the standard rate that the Office of Personnel Management (OPM) applies for federal employees.
  2. The OPM premium rate may be higher than the Postal Service rate. Therefore, Postal Service employees enrolled in a health benefits plan and who are in LWOP status for over 1 year and also receiving OWCP compensation may be due a refund for overdeduction of health benefits premiums.

  3. Eligibility for Refund. To be eligible for a health benefits refund, the employee must meet all of the following criteria for the period of compensable disability:
    1. The employee must be in an LWOP or injury-on-duty status. Employees who are separated from the Postal Service are not eligible.
    2. The employee must receive OWCP compensation payments with health benefits premiums deducted at the OPM rate.
    3. At least 1 year must have elapsed since the U.S. Department of Labor initially placed the employee on OWCP compensation.
  4. Verification of Eligibility. The Postal Service uses the Injury Compensation Performance Analysis System (ICPAS) Health Benefits Report to verify information in a completed PS Form 202, Health Benefits Refund Payment Authorization.
  5. Refunds. After verifying an employee’s eligibility, Health and Resource Management (HRM) must take the following steps to process the refund:
    1. Initiate quarterly a PS Form 202, Health Benefits Refund Payment Authorization (see Exhibit 525.132). In calculating the amount of refund to be paid, ICPAS will subtract the difference between the OPM health benefits premium rate and the Postal Service rate of the health benefits plan that the employee chose.
    2. Print the PS Form 202, verify the information, and obtain the district manager’s or designee’s approval.
    3. Complete PS Form 2551, Non-Goods and Services, using the current online process.
    4. Submit completed PS Forms 2551 and 202 for payment to the Eagan Accounting Service Center, using General Ledger Account (GLA) 51209, H.B. Premiums — Workers Comp Claimants.
    5. File the original PS Form 202 in the employee’s “Injury Compensation” file and send one copy to the employee.
    6. The Eagan Accounting Service Center will forward the refund to the employee.

Exhibit 525.132 

PS Form 202, Health Benefits Refund Payment Authorization

 

Health Benefits Refund Payment Authorization

INSTRUCTIONS

U. S. Postal Service

This is to authorize payment to this employee for refund due on excess withholding on health benefits premium from the OWCP compensation payments.

Name (Employee/Applicant)

Social Security No.

Address (City, State, ZIP+4)

District

Health Benefits Code

Finance No.

Periods Covered

Amount to be paid

(Office Use Only)

Signature of Authorizing Official

Approval by District Manager or Designee

Form 202 August 2009

cc: HEALTH & RESOURCE MANAGEMENT
FINANCE
EMPLOYEE

525.14 Procedures for Continuing Enrollment
525.141 Reporting to OWCP

When reporting the compensable injury or illness on OWCP Form CA–7, Claim for Compensation, HRM will certify whether the employee was enrolled in a health benefits plan on the date pay stopped, and provide the health plan enrollment code. OWCP requires no documentation of this certification to accompany the CA–7.

525.142 Eligibility for Transfer

If OWCP determines that the employee’s compensation will continue for at least 6 months, and the employee meets the eligibility requirements for continuation (see 525.111), OWCP will typically request that the enrollment be transferred to OWCP. HRSSC issues a “Transfer of FEHB Enrollment to OWCP” to accomplish the transfer (see Exhibit 525.142).

If the employee is receiving compensation, enrollment may continue during the first 365 days of leave without pay status. After that period, the employee must meet participation requirements for continuing an enrollment after retirement. The employee must meet the requirements as of the date compensation began. OWCP is responsible for determining eligibility.

Exhibit 525.142

Transfer of FEHB Enrollment to OWCP

525.143 Pending OWCP’s Request for Transfer

If the total disability period is less than 29 days, the Postal Service requires no enrollment transfer. If the total disability period is more than 29 days, USPS takes whichever of the following actions is necessary and appropriate:

  1. If the employee is separated, HRSSC must obtain documentation from OWCP to verify that compensation will continue. If so, HRSSC issues a “Transfer of FEHB Enrollment to OWCP” to make the transfer.
  2. If the employee makes any permissible change in enrollment, HRSSC must notify OWCP by letter as soon as possible of the change and its effective date.
  3. If the enrollment has been transferred to OWCP and the employee subsequently is separated, HRSSC must notify OWCP by letter of the separation so that OWCP knows how to dispose of the enrollment if compensation payments cease.
525.144 Employee Not Eligible to Continue

If an employee who is enrolled is not eligible to continue the enrollment with OWCP, the Postal Service takes whichever of the following actions is necessary and appropriate:

  1. If the employee is separated, the enrollment is terminated via SF 2810.
  2. If the employee remains on the agency’s rolls in nonpay status, the employee may continue enrollment for the first 365 days of nonpay status. (OWCP makes deductions as stated in 525.13.) At the end of the 365 days in continuous nonpay status, the Eagan Accounting Service Center (ASC) issues SF 2810.
  3. If an employee not enrolled in health benefits applies for compensation, HRM will certify the employee was not enrolled in health benefits on the date pay stopped, and U.S. Department of Labor will process the compensation claim as usual.
525.145 OWCP Determines Employee Is Not Eligible

If OWCP determines that an employee is not eligible to continue health benefits, OWCP notifies the employing office. If the employee remains on the agency rolls in nonpay status, the enrollment continues up to and including 365 days. (OWCP makes the deductions for the period.) If the employee continues in nonpay status after day 365, the Eagan ASC issues SF 2810.

525.146 On LWOP 10 Months, But Enrollment Not Transferred

The following provisions apply if an employee is on leave without pay (LWOP), but the HRSSC did not transfer his or her enrollment to OWCP:

  1. If the employee has been enrolled in nonpay status for 10 months, HRSSC contacts the appropriate OWCP office to determine action to take on the enrollment before day 365 of the employee’s continuous nonpay status.
  2. If OWCP determines that the employee is not eligible to continue enrollment, the Eagan ASC issues SF 2810, effective the last day of the pay period that includes day 365 of continuous nonpay status.
  3. If OWCP has been making withholdings and does not expect to terminate compensation before day 365 of continuous nonpay status, HRSSC issues a “Transfer of FEHB Enrollment to OWCP” to transfer the enrollment to OWCP (see Exhibit 525.142).
  4. If OWCP has been making withholdings, but expects to terminate compensation before day 365 of continuous nonpay status, HRSSC takes no health benefits action at that time. However, HRSSC must check on the case again before day 365 of continuous nonpay status. If compensation will not terminate by day 365, HRSSC issues a “Transfer of FEHB Enrollment to OWCP” to transfer the enrollment to OWCP.
525.147 OWCP Terminates Compensation

If OWCP terminates compensation of an employee who meets the requirements in 525.111, but the employee does not return to pay status, the enrollment terminates at midnight on the last day of the pay period in which the employee’s compensation terminates, even if the employee has not been on LWOP for 365 days.

525.148 Employee Returns to Duty

The following provisions apply if an employee receiving compensation returns to duty:

  1. HRM will notify OWCP of the return-to-work date.
  2. If HRSSC did not transfer the enrollment to OWCP, OWCP discontinues withholdings and contributions at the beginning of the pay period in which the employee returned to work. The employing office resumes withholdings and contributions beginning on that date.
  3. If HRSSC transferred enrollment to OWCP, OWCP transfers the enrollment to HRSSC.
525.149 Employee Elects Retirement

If an employee whose enrollment has been transferred to OWCP elects to retire and to receive annuity in lieu of compensation, the Office of Personnel Management (OPM) will request OWCP transfer the enrollment to OPM. If the employee is still on the agency’s rolls in a nonpay status, the Eagan ASC notes in “Remarks” of SF 2806, Individual Retirement Record, that “Health benefits enrollment transferred to OWCP,” and sends the form to OPM.

525.2 Employees in Nonpay Status

525.21 Enrollment Limit of 365 Days

While an employee is in nonpay status, the enrollment of the employee continues for up to and including 365 consecutive days if the employee elects to continue enrollment, except as provided in 525.23. This limitation also applies to suspended employees awaiting decision of an appeal of a removal action, as well as to employees awaiting an OPM decision on an application for disability retirement.

If an employee returns to pay status for at least 4 consecutive months (any 4-month period during which the employee is in pay status for at least part of each pay period) after a period of nonpay status, the employee is entitled to begin a new period of 365 consecutive days of continued enrollment.

525.22 Payment Required for Periods of Nonpay Status
525.221 Responsibility

If an employee is in a nonpay status for an entire pay period, or if available pay during a pay period does not cover the full amount of the employee’s share for the cost of the health benefits enrollment, the employee is responsible for payment of the amount that would have been withheld. Employees who consent to the enrollment’s continuation for a period of time without such withholding from salary are consenting to the recovery of the full amount due.

525.222 Human Resources Shared Service Center (HRSSC) Procedures

The Human Resources Shared Service Center (HRSSC) acts as follows:

  1. As soon as the Postal Service determines that an employee will be in a nonpay status, HRSSC notifies the employee of the option to continue or terminate Federal Employees Health Benefits (FEHB) coverage. HRSSC uses PS Form 3111, Federal Employees Health Benefits (FEHB) Coverage or Termination While in Leave Without Pay (LWOP) Status, which is on the Postal Service Intranet, for this purpose.
  2. HRSSC deems the employee will receive the notice and return envelope, if mailed, by 5 days after the date of the notice. HRSSC keeps a dated copy of the notice in the employee’s electronic official personnel folder (eOPF). When the employee returns the notice with the signature as requested, HRSSC files the signed notice as a permanent record in the eOPF. HRSSC deems the date stamped as received to be the date the employee returned the notice to HRSSC.
  3. If the employee requests additional information or requests to cancel enrollment, HRSSC must ensure that the employee is provided as soon as possible with the appropriate forms and information, including the PostalEASE FEHB Worksheet and the Web address of the Postal Service LiteBlue website.
  4. If the employee elects to terminate enrollment, HRSSC must complete a SF 2810 to terminate enrollment. HRSSC includes the following statement in the remarks section: “Per PS Form 3111 received, the employee elected to terminate FEHB enrollment effective the last pay period in which the employee received pay.”
  5. If the employee fails to sign and return the written notice, the enrollment continues, and USPS expects the employee to pay his or her portion of the premiums due.
525.223 Procedures for Employee

The employee acts as follows:

  1. The employee must acknowledge receipt of PS Form 3111 and complete, sign, and return the form to HRSSC.
  2. Employees who do not wish to incur indebtedness or liability for the health benefits premiums must choose to cancel or terminate the enrollment.
  3. Employees who elect to continue coverage during LWOP may either pay health benefits premiums as invoiced or incur a debt as provided in 525.221.
525.23 Employee Granted LWOP to Serve in Employee Organization
525.231 Policy

Employees granted leave without pay to serve as a full–time officer or employee of an employee organization composed primarily of federal or Postal Service employees may elect, within 60 days, to continue health benefits coverage for as long as the employee is in this LWOP status. The employee must file with HRSSC within 60 days after the LWOP begins.

525.232 HRSSC Procedures

HRSSC acts as follows:

  1. As soon as the Postal Service authorizes LWOP, HRSSC notifies the employee of the right to elect to continue or discontinue health coverage. The employee’s election must be in writing.
  2. If, within 60 days after being contacted, the employee does not make an election, HRSSC documents all action taken. HRSSC considers failure to make an election an election to discontinue the insurance. HRSSC files a copy of the election (or HRSSC’s documentation) in the employee’s eOPF.
525.233 Procedures for Employee

The employee acts as follows:

  1. Employees who elect to continue health insurance coverage must file the election with HRSSC within 60 days after LWOP begins. The employee pays (or arranges to pay) on a current basis both the employee withholding and the Postal Service contributions from the beginning of the LWOP period. The organization and the Eagan Accounting Service Center (ASC) arranges this.
  2. If the employee elects to discontinue health benefits coverage, the Postal Service requires the employee to initiate a PostalEASE FEHB Worksheet to cancel the enrollment.
525.24 Enrolled Employee in Nonpay Status Accepts Temporary Appointment

The first employing office of employees who accept a temporary position and whose enrollment continues because they are on LWOP from their position transfers the enrollment to the second employing office.

If the employee is still enrolled and in LWOP status in the first position when the employment in the second position terminates, the second employing office transfers enrollment to the first employing office. The first employing office then follows the rules in 525.21 to determine the remaining length of time that the employee is entitled to continue coverage while in nonpay status.

If, when the temporary appointment expires, the employee is not then in the first position as an employee, the second employing office terminates the enrollment. The two employing offices coordinate these actions to ensure timely withholdings and contributions. If appropriate, the employing office that first becomes aware of the situation contacts the other employing office to arrange enrollment transfer.

525.25 Employee in Nonpay Status Pending Removal

The enrollment of an employee who the Postal Service placed in nonpay status pending a decision of an appeal of a removal action continues for up to and including 365 consecutive days, provided the employee agrees to pay the required premiums (see 525.22).

525.251 Removal Upheld

If the appeal process upholds the removal, the Postal Service terminates the enrollment at the end of the pay period in which the decision is rendered or at the end of the 365 days, whichever occurs first.

525.252 Restored to Duty

If USPS terminates the employee’s enrollment due to cancellation or after 365 consecutive days of nonpay status, and the employee is subsequently ordered restored to duty on the grounds that the removal was unwarranted or unjustified, the employee may elect either to have the prior enrollment reinstated retroactive to the date it was terminated or to enroll in the plan and option of the employee’s choice, the same as a new employee:

  1. Reinstatement of Enrollment. If the employee elects to have the prior enrollment reinstated retroactively, withholdings and contributions are also made retroactively just as though the erroneous removal had not taken place. USPS considers the employee’s health benefits coverage to have been continuously in effect, and the employee and any covered family members are retroactively entitled to the full benefits of the plan.
  2. New Enrollment. If the employee elects a new enrollment, the enrollment is effective as stated in 524.64. The employee is not retroactively entitled to benefits from the plan, and no retroactive withholdings or contributions are made. The Postal Service does not consider the period of removal during which the enrollment was not in effect as an interruption to continuous enrollment, for purposes of continuing enrollment after retirement, provided the employee enrolls within 60 days after the date ordered restored to duty.

525.3 Military Service

 

Reference Note:

For additional material concerning the subject matter found in 525.3, see:

525.31 Entry Into Military Service
525.311 Thirty Days or Less

If an employee enters one of the uniformed services for a period limited to 30 days or less, the enrollment continues without change. Salary deductions and Postal Service contributions also continue as long as the employee is in pay status. The employee is responsible for payment of premiums while in a nonpay status (see 525.22).

525.312 More Than Thirty Days

If an enrollee enters on active duty, or active duty for training, in one of the uniformed services for a period not limited to 30 days, the enrollment may continue for up to 12 months unless the enrollee elects, in writing, to have the enrollment terminated as of the day before entering active duty. The employee is responsible for the full cost of the employee’s share for the cost of the health benefits enrollment. If the employee elects to terminate the enrollment, the employee and the covered family members are entitled to a 31–day temporary extension of coverage during which they may convert.

525.32 Return From Military Service
525.321 Return Not in Exercise of Reemployment Rights

An employee who returns from military duty but not in the exercise of reemployment rights, if eligible for coverage, enrolls within 31 days after returning to the Postal Service, the same as a new employee. The employee may enroll for Self Only or for Self and Family in either option of any plan available.

525.322 Return in Exercise of Reemployment Rights

The enrollment of an employee who exercises reemployment rights on return from military duty is reinstated on SF 2810 effective the day the employee returns to duty in the Postal Service. The reinstating SF 2810 shows in Remarks that a previously terminated enrollment is being reinstated because of the employee’s return from military service. Note that:

  1. An employee who returns to civilian duty in the exercise of reemployment rights may change the reinstated enrollment from Self Only to Self and Family, and to either option of any plan available within 31 days after returning to civilian service.
  2. Also, if the employee was not enrolled upon entering military duty, the employee may enroll within 31 days after returning to civilian service. The enrollment becomes effective the first day of the pay period that begins after the completed PostalEASE FEHB Worksheet is received in the employing office and that follows a pay period during any part of which the employee was in pay status.
525.33 Death During Military Service

If an employee whose Self and Family enrollment was terminated (or suspended in accordance with previous instructions) upon entry into military service for a period not limited to 30 days or less dies and leaves a family member entitled to annuity, the family member may have the enrollment reinstated effective the day survivor annuity begins. The survivor also may change the enrollment the same as though the employee were returning to civilian duty in the exercise of reemployment rights.

525.34 Loss of Coverage Under the Uniformed Services Health Benefits Program

An employee who is covered as a spouse or child under the Uniformed Services Health Benefits Program for dependents of military personnel may enroll within the period beginning 31 days before and ending 60 days after termination of this coverage.

525.35 Continuous Enrollment

For purposes of eligibility to continue enrollment after retirement, an employee whose enrollment was terminated for military service is not considered to have had an interruption in enrollment if it is reinstated when the employee returns to civilian duty or reenrolls within 60 days after returning to civilian duty.

525.4 Coverage Into Retirement

 

Reference Note:

For additional material concerning the subject matter found in 525.4 see:

525.41 Employee Requirements for Continuation

An employee must meet the following requirements to continue enrollment into retirement:

  1. The employee retires on an immediate annuity (i.e., an annuity that begins to accrue no later than 1 month after the date of final separation).
  2. The employee has been enrolled (or covered as a family member) in a plan under the health benefits program for either of these periods:
    1. For the 5 years of service immediately preceding retirement.
    2. If less than 5 years, for all service since the first opportunity to enroll.
525.42 Procedures to Be Followed by Employing Office
525.421 Determining Eligibility for Continued Enrollment

At the employee’s retirement, the employing office tentatively determines an employee’s eligibility for continued enrollment. OPM makes the final determination of the retiring employee’s eligibility to continue enrollment.

525.422 Transferring Enrollment to OPM

When employees retire under conditions that entitle them to continued enrollment as described in 525.41, the enrollment is transferred on Memorandum About FEHB Enrollment to:

RETIREMENT AND INSURANCE GROUP
OFFICE OF PERSONNEL MANAGEMENT
1900 E ST NW
WASHINGTON DC 20415–0001

It is automatically continued (see Exhibit 525.422).

All SFs 2809 and SFs 2810 in the employee’s official personnel folder together with the PostalEASE FEHB History Report are sent to the Eagan Accounting Service Center (ASC) with the completed memorandum and any related medical certificates for submission to OPM.

Exhibit 525.422

Memorandum About FEHB Enrollment

USPS logo.

525.423 Reinstating Terminated Enrollments

Enrollments terminated as a result of 365 days in nonpay status are reinstated if the retirement application is approved with annuity commencing before the expiration of the 365 days of nonpay and if the employee meets the requirements to continue the enrollment as stated in 525.41.

If the retirement application was filed, as in the case of a disability retirement, and the enrollment was so terminated, the SF 2810 that terminated the enrollment is sent along with all the SFs 2809 and SFs 2810 in the employee’s official personnel folder to OPM through the Retirement Branch, Eagan ASC.

525.43 Benefits and Cost

If the enrollment continues, the annuitant is entitled to the same benefits as active employees enrolled in the same plan. The government contribution for Postal Service annuitants is the same as that for annuitants of other government agencies covered by this program. The annuitant’s share of the enrollment cost is deducted from annuity payments. If the annuity is insufficient for the plan withholdings, enrollees may elect a lower cost plan. OPM bills enrollees for the health benefits premium if they elect not to choose a lower cost plan.

Withholdings are not required for the period between the end of the pay period in which an employee separates from service and the starting date of an immediate annuity, if later.

525.44 Employee Separates and Subsequently Retires
525.441 Terminating Enrollment

If an enrolled employee who is eligible to retire on an immediate annuity is separated and has not filed an application for retirement with the employing office by the time an SF 2810 is to be prepared, the employing office terminates the enrollment.

Enrollment is terminated when an employee is separated while application for retirement, such as for disability, is pending in OPM.

525.442 Encouraging Conversion to Individual Contract

Employees whose enrollments are terminated are encouraged to convert to an individual contract even though they intend to apply for retirement later or have an application for disability retirement pending. If the retirement application is later approved, the enrollment is reinstated by OPM retroactive to the beginning date of annuity, provided the employees meet all requirements to continue the enrollment, and the carrier of the plan refunds the premium paid for the converted policy based on a written request. An adjustment is made for any benefits received or paid while employees are covered under the conversion contract.

525.45 Reemployed Annuitant

 

Reference Note:

For additional material concerning the subject matter found in 525.45, see:

525.451 Enrolled

The following provisions apply:

  1. If an annuitant who is already enrolled under this program is reemployed under conditions that terminate title to annuity, the employing office determines eligibility for continued enrollment during the reemployment under the same criteria that apply to any other employee who transfers enrollment from another payroll office and accepts transfer of, and continues or terminates, the enrollment, as appropriate.
  2. On separation from the reemployment service, the same procedures that apply to other employees being separated or retired are followed, and the enrollment is transferred to OPM or terminated, as appropriate.
  3. If an annuitant who is already enrolled under this program is reemployed under conditions that do not terminate title to annuity, the enrollment as an annuitant continues and is not affected by reemployment.
525.452 Nonenrolled

Annuitants who are not enrolled and are reemployed under conditions that permit coverage enroll the same as other new employees. If the annuitants enroll, they are eligible to continue enrollment on separation from reemployment if they meet all the requirements (including that of retiring on an immediate annuity) that other retiring employees must meet. The immediate annuity requirement is met if annuitants receive a supplemental annuity when separated from the reemployment.

525.453 Reemployed Without Break in Service

The health benefits enrollment of an employee who retires but is immediately reemployed is transferred to OPM even if there is no break between separation and the new appointment.

525.454 FEHB Open Season Opportunities for Reemployed Annuitant

A reemployed annuitant who is not enrolled for health benefits may enroll during an FEHB Open Season, the same as any eligible employee. A reemployed annuitant who is enrolled may, in an FEHB Open Season, change enrollment regardless of the type of appointment under which serving. A reemployed annuitant making a change during FEHB Open Season submits SF 2809 to OPM with a letter stating where he or she is employed.

525.5 Death of an Employee

 

Reference Note:

For additional material concerning the subject matter found in 525.5, see:

525.51 Transfer of Enrollment to Eligible Survivor
525.511 Requirements

The enrollment of an employee who dies in service is automatically transferred to eligible survivors provided:

  1. The deceased employee was enrolled for Self and Family at the time of death.
  2. At least one family member is entitled to an annuity as survivor of the deceased employee. Coverage for all eligible family members continues as long as any of them receives a survivor annuity. If a survivor annuitant is the sole survivor, the Civil Service Retirement System automatically changes the enrollment to Self Only.
525.512 Procedures to Be Followed by Employing Office

Upon the employee’s death, the employing office makes a tentative determination of the survivor’s eligibility to continue the enrollment (see 525.511).

  1. Eligible to Continue Enrollment. If the survivor is eligible to continue the enrollment, the employing office transfers the enrollment to OPM on Memorandum About FEHB Enrollment.
  2. Not Eligible to Continue Enrollment. If the survivor is not eligible to continue the enrollment, the employing office terminates the enrollment on SF 2810. Remarks on the SF 2810 should read: “Enrollee died [__date__]. No survivors eligible to continue health benefits enrollment.”
525.513 Benefits and Cost

If the enrollment continues, the eligible survivors are entitled to the same benefits offered by the plan as active employees enrolled in the same plan. The survivor annuitants’ share of the enrollment cost is deducted from their annuity payments. Survivors of FERS employees are billed by OPM if applicable.

525.52 Enrollment Eligibility Both as an Employee and as a Survivor Annuitant

An eligible employee who has been covered under the family enrollment of a spouse and who, due to the spouse’s death, is eligible to continue the enrollment as a survivor annuitant may cancel the enrollment as an annuitant and enroll as an employee on the basis of a change in marital status (e.g., death of spouse). However, if the surviving spouse enrolls as an employee on this basis and later is separated under conditions not entitling the surviving spouse to continue enrollment, the enrollment is terminated by the employing office. In this event, if still a survivor annuitant, the surviving spouse may apply to OPM for reinstatement of the annuitant– or survivor–acquired enrollment and request that health benefits deductions be made from the annuity.

If the reinstatement application is received by the Civil Service Retirement System:

  1. Within 60 days after separation from employment, the enrollment is reinstated retroactive to the day after it was terminated by the employing office.
  2. More than 60 days after the separation, the enrollment is reinstated effective the first day of the month after the month in which the application is received.

525.6 Transfer to or From Overseas Post of Duty

 

Reference Note:

For additional material concerning the subject matter found in 525.6 through 525.82, see:

An employee who is transferred from a post of duty within the United States (including the District of Columbia) to a post of duty outside the United States, or the reverse, may enroll or change enrollment. Change of enrollment may be from Self Only to Self and Family or from one plan or option to another, or both, within the period beginning 31 days before leaving the old post of duty and ending 60 days after arriving at the new post of duty.

525.7 Move Outside Service Area of a Comprehensive Plan

An employee enrolled in a comprehensive plan (group or individual practice prepayment plan) that moves outside the service area of that plan may change to any other plan available in the area to which he or she is moving and may change options from Self Only to Self and Family. An employee already living outside the service area of the plan that moves farther from the nearest office of the plan in which enrolled may similarly change enrollment. Such a change may be made at any time after the move. The change takes effect on the first day of the pay period after the PostalEASE FEHB Worksheet is received by the employing office.

525.8 Employment Transfer

525.81 Within Postal Service or to Another Federal Agency

With the exception noted in 525.7, the enrollment of an employee who moves from one Postal Service installation to another within the Postal Service or to an employing office in a federal agency, whether the personnel action is designated as a transfer or not, continues without interruption provided there is not a break in service of more than 3 days.

An employee enrolled in an employee organization plan who transfers to another agency continues to be enrolled in the plan until either a regular opportunity to change plans (as during an FEHB Open Season) occurs, or until the enrollment is terminated at the plan’s request because the employee no longer is a member of the organization.

525.82 Outside Comprehensive Area

If an employee who is enrolled in a comprehensive plan transfers outside the area serviced by the plan, the provisions in 525.7 apply.

525.83 Congressional Office

 

Reference Note:

For additional material concerning the subject matter found in 525.83, see:

525.831 From Postal Service to Senate or House

If an enrolled employee leaves the Postal Service and is employed by the Senate or House of Representatives without a break in service of more than 3 days, the health benefits enrollment is transferred as usual.

525.832 From Senate or House to Postal Service

If an enrolled employee of the Senate or House is employed in the Postal Service without a break in service of more than 3 days, the enrollment is terminated at the end of the month in which the separation from the Senate or House occurs. The Postal Service verifies entitlement to continued benefits and reinstates the enrollment on the first day of the following month.