Understanding Your Benefit Continuation Options
When facing a Reduction in Force (RIF), one of your most critical concerns is maintaining the valuable benefits you've earned as a federal employee. This guide provides an overview of your options for continuing health insurance (FEHB), life insurance (FEGLI), dental and vision coverage (FEDVIP), and long-term care insurance (FLTCIP) after separation.
Your Federal Benefits: Continuation Options
Health Insurance (FEHB)
Provides comprehensive health insurance. Key continuation points:
- 31-day free extension after separation
- Temporary Continuation of Coverage (TCC) available for up to 18 months (102% premium)
- Option to enroll under spouse's FEHB (if eligible)
- Continued coverage if eligible for immediate retirement (e.g., DSR)
Life Insurance (FEGLI)
Provides group term life insurance. Key continuation points:
- 31-day free extension after separation
- Option to convert to an individual whole life policy (costly)
- No medical exam required for conversion
- Continued coverage if eligible for immediate retirement (must meet 5-year rule)
Dental & Vision (FEDVIP)
Provides supplemental coverage. Key continuation points:
- No free extension
- TCC available for up to 18 months (full premium + 2% fee)
- Must enroll via BENEFEDS within 60 days
- Continued coverage if eligible for immediate retirement
Long-Term Care (FLTCIP)
Provides coverage for long-term care. Key continuation points:
- Fully portable – coverage continues automatically
- No action required if premiums are up-to-date
- Premiums remain the same
- Must arrange for direct premium payment
Benefit Continuation Timeline
Understanding the timeline for benefit continuation decisions is critical. Here's a general guide:
- Schedule necessary medical/dental/vision appointments.
- Request benefit info/forms from HR.
- Review current coverage vs. future needs.
- Confirm receipt of separation package & benefit forms (SF-2810, SF-2821).
- Note exact dates for FEHB/FEGLI 31-day extensions.
- Note exact 60-day TCC deadlines for FEHB/FEDVIP.
- CRITICAL: Submit FEGLI conversion application if desired.
- Utilize free FEHB extension.
- CRITICAL: Submit FEHB TCC enrollment (SF-2809) if desired.
- CRITICAL: Enroll in FEDVIP TCC via BENEFEDS if desired.
- Enroll in spouse's FEHB (QLE) or Marketplace plan if applicable.
- Verify first premium payments for TCC/Conversion.
- Update providers with new insurance info if applicable.
- Arrange direct FLTCIP payments if enrolled.
Benefit Continuation Options Comparison
| Benefit | Free Extension | Continuation Option(s) | Typical Duration | Typical Cost | Key Deadline |
|---|---|---|---|---|---|
| FEHB | 31 days | TCC / Spouse FEHB / Retirement / Marketplace | Up to 18 mos (TCC) | 102% (TCC) | 60 days (TCC) |
| FEGLI | 31 days | Conversion / Retirement | Indefinite (Conv.) | Varies, High (Conv.) | 31 days (Conv.) |
| FEDVIP | None | TCC / Retirement | Up to 18 mos (TCC) | 102% (TCC) | 60 days (TCC) |
| FLTCIP | N/A | Portability (Automatic) | Indefinite | Same Premium | None (Auto) |
Note: Costs and durations can vary. Retirement assumes eligibility criteria are met. Marketplace refers to ACA plans.
Agency-Specific Considerations
While core rules are OPM-based, some agencies might offer specific transition support or have nuances in processing. Always check with your agency's HR Benefits Specialist.
- Confirm points of contact for benefits questions post-separation.
- Understand the process for receiving your final SF-50 and separation package.
- Inquire about any agency-specific outplacement or transition assistance programs.
- Verify timelines for payout of final salary and lump-sum annual leave.
Historically, certain DoD components or locations undergoing significant restructuring *may* have offered limited, temporary extensions or subsidies under specific authorities (e.g., BRAC). These are rare and highly specific.
- Check for any specific Transition Assistance Program (TAP) resources related to benefits.
- Verify procedures if separating from an overseas assignment.
Large agencies like VA, HHS, DHS, etc., generally follow standard OPM guidelines but may have dedicated internal resources or slightly different processing workflows.
- Focus on identifying the correct HR benefits contact within your specific agency/sub-agency.
- Ask about the expected timeline for receiving TCC notification letters after separation.
Key Considerations for Your Decisions
Healthcare Needs
- Pre-existing conditions & ongoing treatments
- Provider network access
- Prescription drug costs & formularies
- Dependents' coverage needs
Financial Impact
- Budgeting for 102% premium costs (TCC)
- Comparing TCC vs. Marketplace vs. Spouse's FEHB costs
- High cost of FEGLI conversion
- Potential out-of-pocket maximums
Recommendation: Carefully weigh the cost of continuation against the risk of coverage gaps, especially if you have significant health needs. Use the 31-day free FEHB extension wisely while finalizing your plan.