What Happens to FEGLI and Other Federal Benefits in Nonpay Status?

What Happens to FEGLI and Other Federal Benefits in Nonpay Status?

Your typical federal employee understands the value of federal benefits such as the FEGLI life insurance program only when faced with the possibility that it could get yanked away. One such reason is when you land up in Nonpay Status.

For the record, there are several reasons for this and many different types of Nonpay Status. This includes everything from furloughs and suspensions to leave without pay, seasonal employment, sabbaticals, etc.

The good news is that it doesn’t matter what type of Nonpay Status you have. The way that all of them affect a specific federal employee benefit is pretty much the same. Note that the effect of Nonpay Status on different benefits such as such as FEGLIFEHB and the Thrift Savings Plan (TSP) might vary. So all you need to do is focus on the length of the Nonpay Status, and the benefit in question.

How Nonpay Status Affects FEGLI Coverage and Premium Payments 

The simple answer is that if you are eligible and enrolled into FEGLI, the coverage will continue without any break for the first 12 months of your Nonpay Status. Even better is the fact that you do not have to pay premiums during this period. Your employing agency will pay it for you.

The only exception to this rule is for federal employees in Nonpay Status who are still receiving benefits from the Office of Workers’ Compensation Programs. Those receiving OWCP benefits are expected to pay their share of FEGLI premiums.

In any case, your FEGLI coverage is terminated after this 12-month period if you do not return to pay status. At this point, you will get an additional 31-day extension coverage if you want to convert it to an individual policy.

How Nonpay Status Affects Other Federal Benefits 

TSP contributions will be halted for the duration of your Nonpay status. Retirement coverage will continue without contributions from you. For FEHB, you have the option to terminate your coverage during the Nonpay Status, and then re-enroll after returning to pay status. Long-term care (LTC) policies are not affected by Nonpay Status. However, if your LTC payments were being deducted from your paycheck, you will have to switch to another payment plan.

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