Everyone has heard the phrase “Life Events” but do you really know what they are? A life event can be explained as an important change, they include:
You move
You get married
You divorce
Your child reaches age 26
You reach age 65
Your spouse dies
Your former spouse dies or remarries before age 55
You die
All of the above will be address in this article.
Other qualifying events are:
You have a baby (or adopt)
You acquire a step-child or a foster child under age 26
Your child dies
You want to change your beneficiary designations
You want to assign your life insurance
You become disabled
You are terminally ill
You are injured on the job
You cannot handle your own money
Various life events may cause you to want to take actions concerning your benefits. I will address each issue as they are listed above:
You move: It is vital that you give your agency your new address especially if you have payroll checks or annuity payments mailed. If state income tax is withheld, and you move to another state, you will need to stop tax withholding for the current state and authorized withholding for your new state. Your new address will also be needed for benefits information and/or 1099R statements to be mailed to you.
Health Coverage: You should contact your agency personnel office to review your benefit plan and confirm your service area. You may need to complete Standard Form (SF) 2809 to change your health plan. You have 60 days from the date of the event to make a health benefit change.
Vision and dental benefits are administered through BENFEDS and can be reached at 877-888-3337.
Change in financial institution: You will need to give your agency the name, routing number and your account number at the new financial institution. However, always leave your old account open until you know your payment are going into your new account.
You get married: A copy of your marriage certificate showing the date of your marriage and the name of your new spouse will be needed along with their, date of birth, and Social Security. If you want/need your name to be changed in the agency’s official records you will need to ask your agency personnel office to prepare the personnel action to do this. You may also want to make changes to your family health benefits enrollment. You have from 31 days before your marriage to 60 days afterwards to do this. Otherwise, you will be required to wait until the next health benefits Open Season. You will also need to complete a SF 2809. If you already have a “family plan”, contact your carrier to include your new spouse (and if appropriate, step-children) in the coverage.
You may also want to change your Federal and State income tax withholding and/or request information about:
Beneficiary designations for life insurance or retirement; Standard Form 2808, Designation of Beneficiary (CSRS), Standard Form 3102, Designation of Beneficiary (FERS), and Standard Form 2823, Designation of Beneficiary, Federal Employees’ Group Life Insurance.
Or
Survivor annuities: If you want to provide a survivor annuity for your new spouse, you must notify OPM within two years after the date of the marriage.
You divorce. When you divorce, your spouse is no longer a family member and cannot be covered under your family health benefit. However, your children can continue coverage. Contact OPM, if your court order instructs you to continue to provide health benefits coverage for your former spouse. You will have 60 days from the date of the divorce to do so.
A certified copy of your Divorce Decree (court order) and all attachments must be mailed to the U.S. Office of Personnel Management (OPM). The federal employee’s name, federal employee’s social security number and date of birth of the federal employee will also be needed.
Other items to consider would be a change to your Federal and State income tax withholding. As well as any change to your designation of beneficiary for life insurance or for retirement. Standard Form 2808, Designation of Beneficiary (CSRS), Standard Form 3102, Designation of Beneficiary (FERS), and Standard Form 2823, Designation of Beneficiary, Federal Employees’ Group Life Insurance.
If the court order states that you must provide a part of your future annuity, and/or survivor annuity to your former spouse your former spouse (personally or through a representative) must apply in writing to be eligible for the court-awarded portion of an employee annuity.
Note: A court order may require you to assign your life insurance to your ex-spouse. This court order may pre-empt the order of precedence in the payment of benefits. See pamphlets Court Ordered Benefits for Former Spouses, RI 84-1 and Assignment of FEGLI Insurance Form, RI 76-10. WARNING! This form permanently transfers ownership of your
FEGLI insurance to another individual, trustee, or corporation (however, premiums continue to be withheld from your salary/annuity). An assignment is irrevocable, and cannot be changed later. DO NOT USE THIS FORM if you only wish to designate a beneficiary to receive your life insurance. Instead, use the available designation of beneficiary form.
To read more about this issue see the article on our website: RETIREMENT AND THE ISSUES SURROUNDING A DIVORCED FEDERAL EMPLOYEE.
Your child reaches age 26. Children who are age 26 and older cannot be covered by your family health benefits coverage (unless the child is disabled before turning age 26). However, if you wish, you may obtain temporary coverage for up to 36 months. Contact OPM within 60 days after the child reaches age 26. OPM Pamphlet RI 79-2 has more detailed information. Warning You will not be informed by OPM or by your health insurance carrier when a family member loses eligibility for coverage.
You reach age 65. Since you have reached that magic age, you are now eligible for Medicare. Contact the Social Security Office (800-772-1213) and apply for Medicare immediately to avoid any penalties. The decision to sign up is voluntary during specific enrollment periods. If you don’t sign up when you are first eligible, you may have to pay a late enrollment penalty from the time you apply until your death.. The late enrollment penalty will change each year but will be included in your premium for as long as you maintain the coverage. Employees 65 and older can get Medicare Part A benefits at no cost; however, you will pay a premium for Part B. You first become eligible for Medicare Part A and/or Part B during the 7-month Initial Enrollment Period. If you’re eligible when you turn 65, you can sign up during the 7-month period that begins 3 months before the month you turn 65, includes the month you turn 65, and ends 3 months after the month you turn 65.
To read more about Medicare and the decisions you need to make see our article: Are You Between 777 Months Old and 783 Months Old? If so, You Have Important Decisions to Make.
At this point you may decide to change your health benefits enrollment to a less expensive plan. This change may be made 30 days before you are 65 or at any time thereafter.
Your life insurance under the Federal Employees Group Life Insurance Program will start to reduce at the rate of 2% per month, and/or your Basic life Insurance will reduce to 25% of its face value. For more detailed information see: Information for Retirees and Their Families RI 76-12
Your spouse dies. A copy of your spouse’s death certificate must be provided. Items that may change due to your spouse’s death are: Survivor Annuity, life insurance, health benefits, federal and state tax withholding. You will need to contact your agency payroll office to complete the necessary federal and state tax withholding forms.
If you are receiving a reduced annuity in order to provide a survivor annuity for your spouse, your annuity may be able to be increased after the death certificate is provided.
Option C – Family Life Insurance coverage. If your spouse is covered by Option C you will need to complete and file a claim for benefits (Form FE6-DEP). If no other family members are eligible for this coverage you should cancel Option C. This can be done at any time – but it is not automatic. Standard Form 2817 will cancel Option C.
If a change in beneficiaries is needed for life insurance or for retirement due to the death of a spouse, this must be done in writing on the appropriate forms. Standard Form 2808, Designation of Beneficiary (CSRS), Standard Form 3102, Designation of Beneficiary (FERS), and Standard Form 2823, Designation of Beneficiary, Federal Employees’ Group Life Insurance.
Health benefits: You may want to change to self-only enrollment if no other family members are eligible for health benefits.
Your former spouse dies or remarries before age 55. OPM will require proof of the former spouse death or the marriage certificate as they may be able to increase your annuity after proof has been provided.
You may also want to change your Federal and State income tax withholding and/or request information about:
Beneficiary designations for life insurance or for retirement use Standard Form 2808, Designation of Beneficiary (CSRS), Standard Form 3102, Designation of Beneficiary (FERS), and Standard Form 2823, Designation of Beneficiary, Federal Employees’ Group Life Insurance.
You die. OPM should be contacted immediately for many reasons: (1) it is illegal to cash annuity checks made out to you, (2) it is illegal to withdraw money OPM has deposited into your account after your death; or to use funds remaining on any Direct Express Debit Mastercard. Upon receipt of a copy of your death certificate, all the necessary forms will be sent to your family or representative with full instruction about how to proceed.
Family Health benefits will also need to be changed.
Sources: OPM website and pamphlets
