[Code of Federal Regulations]
[Title 5, Volume 2]
[Revised as of January 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 5CFR870.703]

[Page 420]
 
                    TITLE 5--ADMINISTRATIVE PERSONNEL
 
          CHAPTER I--OFFICE OF PERSONNEL MANAGEMENT (CONTINUED)
 
PART 870_FEDERAL EMPLOYEES' GROUP LIFE INSURANCE PROGRAM--Table of Contents
 
                Subpart G_Annuitants and Compensationers
 
Sec.  870.703  Election of Basic insurance.

    (a) Unless he/she has elected a Living Benefit, an individual who 
makes an election under Sec.  870.701(c) must select one of the 
following options:
    (1) Termination of the insurance. The individual's insurance stops 
upon conversion to an individual policy as provided under Sec.  870.603. 
If the individual doesn't convert to an individual policy, insurance 
stops at the end of the month in which OPM or the employing office 
receives the election;
    (2) Continuation or reinstatement of Basic insurance with a maximum 
reduction of 75 percent during retirement. Premiums are withheld from 
annuity or compensation (except as provided under 870.401(d)(1)). The 
amount of Basic Life insurance in force reduces by 2 percent of the BIA 
each month until the maximum reduction is reached. This reduction starts 
at the beginning of the 2nd month after the date the insurance would 
otherwise have stopped or the date of the insured's 65th birthday, 
whichever is later;
    (3) Continuation or reinstatement of Basic insurance with a maximum 
reduction of 50 percent during retirement. Premiums are withheld from 
annuity or compensation. The amount of Basic insurance in force reduces 
by 1 percent of the BIA each month until the maximum reduction is 
reached. This reduction starts at the beginning of the 2nd month after 
the date the insurance would otherwise have stopped or the date of the 
insured's 65th birthday, whichever is later; or
    (4) Continuation or reinstatement of Basic insurance with no 
reduction after age 65. Premiums are withheld from annuity or 
compensation.
    (b)(1) Unless an employee has elected a partial Living Benefit under 
subpart K of this part or an individual has assigned the insurance under 
subpart I of this part, an insured individual may cancel an election 
under paragraph (a)(3) or (a)(4) of this section at any time. The amount 
of Basic insurance automatically switches to the amount that would have 
been in force if the individual had originally elected the 75 percent 
reduction. This revised amount is effective at the end of the month in 
which OPM receives the request to cancel the previous election.
    (2) If an individual files a waiver of insurance, the coverage stops 
without a 31-day extension of coverage or conversion right. This is 
effective at the end of the month in which OPM receives the waiver.
    (c) Unless he/she chooses to terminate his/her insurance, an 
employee who has elected a partial Living Benefit must choose the no 
reduction election under paragraph (a)(4) of this section. He/she cannot 
later change to the 75 percent reduction.
    (d) If an employee has assigned his/her insurance, he/she cannot 
cancel an election under paragraph (a)(3) or (a)(4) of this section. 
Only the assignee(s) may cancel this election. Exception: if the 
employee elected a partial Living Benefit before assigning the remainder 
of his/her insurance, the assignee(s) cannot cancel the election under 
paragraph (a)(4) of this section.

[62 FR 48731, Sept. 17, 1997. Redesignated at 64 FR 72463, Dec. 28, 
1999]