Access to health and life insurance is a privilege not everyone enjoys.
As a federal employee, you have access to some of the most comprehensive benefits available from any employer. These benefits are particularly helpful if you’re dealing with an injury or medical condition.
If a medical condition is making it difficult for you to work and you’re continuing solely to keep your insurance coverage, there’s an alternative.
Federal Disability Retirement allows you to retire early while keeping your federal health and life insurance benefits, providing you with the support you need during challenging times.
The application process for Federal Disability Retirement can be demanding, especially while focusing on your own health, but our team can guide you through the process so you don’t have to struggle at work anymore.
Maintaining Coverage Post-Approval
Health Insurance:
Once you’re approved for Federal Disability Retirement, you can choose to stay on your current FEHB insurance plan. Your spouse and dependents can remain on your plan as well.
In order to stay on your FEHB plan, you must have been on that benefit for 5 years. If you haven’t worked for five years to meet this requirement, you can fill out a waiver to show that you’ve been covered during all your time in service, which will allow you to continue coverage.
You’re still responsible for paying your portion of your health insurance premium, and the OPM will take over your agency’s portion.
What if My Coverage Has Already Been Terminated?
If you’re still on the rolls at your federal agency when you’re approved for Federal Disability Retirement, your health insurance will continue as normal.
If you’ve been separated from your agency before you’re approved for Federal Disability Retirement, the OPM will restart your health insurance. You’ll have the option to reinstate it retroactively to cover any out-of-pocket costs when you weren’t covered by insurance. However, you’ll be responsible for paying the premiums for this time.
Life Insurance:
Maintaining your life insurance will be very similar to your health insurance.
However, you must be on your Federal Employee Group Life Insurance (FEGLI) plan for five years in order to carry it into retirement. There is no waiver to continue FEGLI if you’ve not been on it for five years prior to retirement.
You can cancel or reduce your FEGLI coverage at any time by filling out Standard Form 2817.
Adjusting Coverage During Open Season
Just like any other year of working in the federal government, you’ll be able to adjust your health and life insurance options during open season when you’re on Disability Retirement.
It’s important to regularly assess your health insurance, especially when treating a medical condition. Your needs may change over time, and having the right coverage for your situation can help manage out-of-pocket expenses.
Another thing to keep in mind is that once you turn 55, your FEGLI premiums will begin to increase every 5 years. If your premiums get too high, you may want to explore options outside of FEGLI during the open season.
What Happens at Age 62
Once you turn age 62, it’ll be like you were never on Federal Disability Retirement at all. You’ll be able to continue your insurance coverage like normal and be able to switch options during open season.
At this age, you should carefully consider your insurance needs and coverage options to make sure they align with your financial situation and healthcare needs as you transition to regular retirement. This is also a good time to explore Medicare enrollment options, as your eligibility for Medicare begins at 65, which may change your decisions regarding FEHB coverage.
Being able to continue health and life insurance on Federal Disability Retirement is a life-changing benefit necessary for so many federal employees.
Our firm is dedicated to helping you navigate the complexities of the Federal Disability Retirement process and ensuring you receive the benefits you deserve. Don’t wait any longer – schedule your free consultation with us today and take the first step towards securing your future.
