[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: 5CFR870.707]

[Page 422-423]
 
                    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.  870.707  Reemployed annuitants.

    (a)(1) If an insured annuitant is appointed to a position in which 
he/she is eligible for insurance, the amount of his/her Basic life 
insurance as an annuitant (and any applicable annuity withholdings) is 
suspended on the day before the 1st day in pay status under the 
appointment, unless the reemployed annuitant waives all insurance 
coverage. The Basic insurance benefit payable upon the death of a 
reemployed annuitant who has Basic insurance in force as an employee 
can't be less than the benefit which would have been payable if the 
individual hadn't been reemployed.
    (2) Except as provided in paragraph (b) of this section, the Basic 
insurance obtained as an employee stops with no 31-day extension of 
coverage or conversion right, on the date reemployment terminates. Any 
suspended Basic insurance (and any applicable annuity withholdings) is 
reinstated on the day following termination of the reemployment.
    (b) Basic insurance obtained during reemployment can be continued 
after the reemployment terminates if:
    (1) The annuitant qualifies for a supplemental annuity or receives a 
new retirement right;
    (2) He/she has had Basic insurance as an employee for at least 5 
years of service immediately before separation from reemployment or for 
the full period(s) during which such coverage was available to him/her, 
whichever is less; and

[[Page 423]]

    (3) He/she doesn't convert to nongroup insurance when Basic 
insurance as an employee would otherwise terminate.
    (c) If the Basic insurance obtained during reemployment is continued 
as provided in paragraph (b) of this section, any suspended Basic life 
insurance stops, with no 31-day extension of coverage or conversion 
right.
    (d) (1) An annuitant appointed to a position in which he/she is 
eligible for Basic insurance, is also eligible for Optional insurance as 
an employee, unless he/she has on file an uncancelled waiver of Basic or 
Optional insurance.
    (2) If the individual has Option A or C as an annuitant, that 
insurance (and applicable annuity withholdings) is suspended on the day 
before his/her 1st day in pay status under the appointment. Unless he/
she waives Option A or C (or waives Basic insurance), he/she obtains 
Option A or C as an employee.
    (3) If the individual has Option B as an annuitant, that insurance 
(and applicable annuity withholdings) continues as if the individual 
weren't reemployed, unless:
    (i) The individual files with his/her employing office an election 
of Option B, in a manner designated by OPM, within 31 days after the 
date of reemployment. in this case Option B (and applicable annuity 
withholdings) as an annuitant is suspended on the date that Option B as 
an employee becomes effective; or
    (ii) The individual waives Basic insurance.
    (4) The Option B benefit payable upon the death of a reemployed 
annuitant is the amount in effect as an annuitant, unless he/she elected 
to have Option B as an employee.
    (5) Except as provided in paragraph (e) of this section, the 
Optional insurance obtained as an employee stops, with no 31-day 
extension or conversion right, on the date reemployment terminates. The 
amount of suspended Optional insurance which remains in force after 
applicable monthly reductions after age 65 (and corresponding 
withholdings) is reinstated on the day after reemployment terminates.
    (e) Optional life insurance obtained during reemployment may be 
continued after the reemployment terminates if the annuitant:
    (1) Qualifies for a supplemental annuity or receives a new 
retirement right;
    (2) Continues his/her Basic life insurance under paragraph (a) (2), 
(3), or (4) of Sec.  870.702; and
    (3) Has had Optional insurance as an employee for at least the 5 
years of service immediately before separation from reemployment or for 
the full period(s) of service during which it was available to him/her, 
whichever is less.
    (f) If Optional insurance obtained during reemployment is continued 
as provided in paragraph (e) of this section, any suspended Optional 
insurance stops, with no 31-day extension of coverage or conversion 
right.
    (g) If a reemployed annuitant waives life insurance as an employee, 
the waiver also cancels his/her life insurance as an annuitant.

[62 FR 48731, Sept. 17, 1997; 62 FR 52181, Oct. 6, 1997. Redesignated at 
64 FR 72463, Dec. 28, 1999]