[Code of Federal Regulations]
[Title 5, Volume 2, Parts 700 to 1199]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR870.908]

[Page 392-393]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (Continued)
 
PART 870--FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM--Table of Contents
 
                Subpart I--Assignments of Life Insurance
 
Sec. 870.908  Annuitants and compensationers.

    (a) If an employee assigns Basic insurance and later becomes 
eligible to continue such insurance coverage as an annuitant or 
compensationer as provided in Sec. 870.701:
    (1) At the time he/she retires or becomes eligible as a 
compensationer, the insured individual may elect unreduced or partially 
reduced insurance coverage as provided in Sec. 870.702(a). This right 
remains with the insured individual and does not transfer to the 
assignee. Exception: if the insured individual elected a partial Living 
Benefit as an employee under subpart K of this part, he/she can only 
elect unreduced insurance coverage.
    (2) After the individual has made the election described in 
paragraph (a)(1) of this section, the assignee (or, if more than one, 
all of the assignees acting together) may, at any time, elect to cancel 
the annuitant's or

[[Page 393]]

compensationer's election of increased coverage, as provided in 
Sec. 870.702(b). The right to cancel the election transfers to the 
assignee; the annuitant or compensationer cannot cancel the election 
after making an assignment. Exception: if the individual elected a 
partial Living Benefit as an employee under subpart K of this part, the 
assignee(s) cannot cancel the election of unreduced insurance coverage.
    (b) When more than one assignee has been named, at the time the 
insured individual becomes eligible to continue coverage as an annuitant 
or compensationer, some assignees may choose to convert their part of 
the insurance, while others may choose to continue the coverage during 
the insured individual's retirement or receipt of compensation. The 
amount of each type of continued insurance is determined by the total 
percentage of the shares of the assignees who choose to continue the 
coverage.
    (c)(1) When an annuitant who has assigned his/her insurance is 
reemployed in a position in which he/she is entitled to life insurance 
coverage, the coverage he/she acquires as a reemployed annuitant is 
subject to the existing assignment.
    (2) The right of a reemployed annuitant to elect Option B coverage 
as an employee rather than as an annuitant under Sec. 870.705(d)(3) 
remains with the insured individual and does not transfer to the 
assignee. Any Option B coverage elected as an employee is subject to the 
existing assignment.