Effective February 16, 2006, Employee and Labor Relations Manual (ELM) 436.43, Life Insurance Coverage, is renumbered to be ELM 436.5, to improve the overall
organization of this section. Subsequent sections are renumbered accordingly.
The text of newly numbered 436.5 (formerly 436.43),
Life Insurance Coverage, is revised to clarify how employees in nonpay status, separated employees, and new
employees hired due to settlement or decision may obtain
life insurance coverage or change existing coverage once
they are returned to duty in a pay status following reinstatement or accession. These coverage rules are governed by
the Federal Employees' Group Life Insurance (FEGLI)
Program.
Employee and Labor Relations Manual (ELM)
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4 Pay Administration
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430 Basic and Special Pay Provisions
* * * * *
436 Back Pay
* * * * *
436.4 Documents in Support of Claim
* * * * *
[Renumber current 436.5 and 436.6 as new 436.6 and
436.7. Renumber current 436.43 as new 436.5 and revise
the text to read as follows:]
436.5 Life Insurance Coverage
If an individual is restored to duty in a pay status, or hired
through a settlement or decision, life insurance coverage is
dealt with according to Federal Employees' Group Life
Insurance (FEGLI) Program regulations, depending on the
circumstances encountered during the back pay period, as
follows:
a. Employee is on the rolls but in nonpay status. While
the employee is in nonpay status, basic and optional
coverage continue without cost for up to 12 months.
After 12 months, coverage ceases, subject to a
31-day extension. (This 12-month period in nonpay
status may be broken by periods of less than 4 consecutive months in pay status. If the employee returns to pay status for a period of 4 consecutive
months or more, a new 12-month period of continued
coverage begins.) When the employee returns to
duty in a pay status, if coverage has ceased, on the
first day of his or her return, basic and optional insurance are restored automatically, according to the last
election on file (see 534.1, LWOP). Until coverage
ceases, optional insurance may be elected, or increased, if the employee submits SF 2817, Life Insurance Election (FEGLI), within 60 days of
experiencing a qualifying life event (e.g., marriage,
divorce, death of spouse, birth or adoption of child).
b. Employee is separated from the Postal Service for
less than 180 days. On the last day in pay status, basic and optional coverage cease, subject to a 31-day
extension (see 535.6, Termination). The employee
may also convert FEGLI coverage to an individual
policy. When the employee is reinstated, the employee automatically receives the FEGLI coverage
according to his or her last election on file. The
FEGLI regulations allow changes to this election under any one of the following three circumstances:
(1) FEGLI Open Season. A new election form may
be submitted during a FEGLI Open Season.
(2) Satisfactory medical information. An employee
who waived life insurance before the separation
may acquire Basic Life Insurance and
Option A - Standard and/or Option B - Additional (up to a total of five multiples) insurance by
providing satisfactory medical information to the
Office of Federal Employees' Group Life Insurance (OFEGLI) by using SF 2822, Request for
Insurance (FEGLI). If the request is approved,
the employee is automatically signed up for Basic Life Insurance. He or she is given 31 days to
elect Option A and/or Option B by submitting
SF 2817. An employee who already has Basic
Life Insurance may elect Option A and/or Option
B or increase Option B multiples by providing
satisfactory medical information through the
same procedure. The employee must meet pay
and duty status requirements to have the coverage become effective.
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(3) Qualifying life event. An employee who has
Basic Life Insurance coverage may elect Option
B or Option C or increase multiples of Option B
or C (up to a total of five multiples) if there is a
qualifying life event during the separation or during the 60-day period immediately before the
separation. The employee is given 31 days from
the date of reinstatement, or 60 days from the
date of the event, whichever gives the employee
more time, to elect optional insurance by submitting SF 2817. An employee who experiences a
qualifying life event after returning to service has
60 days from the qualifying life event to increase
FEGLI coverage. The amount of coverage that
can be elected can vary depending on the life
event and eligible family members. (See the
chart under Life Event in FE 76-20, FEGLI Program Booklet for Postal Service Employees.)
c. Employee is separated from the Postal Service for
180 days or more. On the last day in pay status, basic
and optional coverage cease, subject to a 31-day extension (see 535.6, Termination). When the employee is reinstated, any waiver of insurance
previously on file is cancelled. Basic Life Insurance
becomes effective on the first day the employee returns to duty in a pay status. The employee may file a
new waiver of coverage or elect optional insurance
within 31 days of returning to duty by submitting
SF 2817. If the employee files no election, he or she
is given the optional insurance on file immediately
before the break in service.
d. Individual hired as a new employee of the Postal
Service. As a new employee, the individual is eligible
for basic and optional insurance according to 531.2,
Eligible Employees, subject to 531.3, Exclusions.
Basic Life Insurance coverage begins for an eligible
employee on the first day of duty in a pay status, and
he or she has 31 days to elect optional insurance by
submitting SF 2817.
e. Individual dies during the back pay period. According
to 5 U.S.C. 8706(d), if the insurance of an employee
stops because of separation from the service or
suspension without pay, and the separation or
suspension is thereafter officially found to have been
erroneous, the employee is deemed to have been insured during the period of erroneous separation or
suspension. Deductions otherwise required by
5 U.S.C. 8707 are not withheld from any back pay
awarded for the period of separation or suspension
unless death or accidental dismemberment of the
employee occurs during such period. Deductions
must be made from the back pay awarded in these
two situations because an insurance claim is paid.
* * * * *
436.7 Interest on Back Pay
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436.73 Determination of Rate of Interest
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[Revise 436.73a to read as follows:]
a. Decisions (see Exhibit 436.73a):
* * * * *
[Revise 436.73b to read as follows:]
b. Settlements (see Exhibit 436.73b):
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We will incorporate these revisions into the next printed
version of the ELM and also into the online update available
on the Postal ServiceTM PolicyNet Web site:
• Go to http://blue.usps.gov.
• Under "Essential Links" in the left-hand column, click
on References.
• Under "References" in the right-hand column, under
"Policies," click on PolicyNet.
• Click on Manuals.
(The direct URL for the Postal Service PolicyNet Web
site is http://blue.usps.gov/cpim.)
It is also available on the Postal Service Internet:
• Go to www.usps.com.
• Click on About USPS & News, then Forms & Publications, then Postal Periodicals and Publications, and
then Manuals.
— Compensation,
Human Resources, 2-16-06
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