Erroneous FEGLI Coverage and Correction of Errors
It doesn’t happen often, but in the rare instance that you get entangled into incorrect FEGLI coverage, it may be a good idea to know beforehand how to correct the error.
For starters, there are only four reasons for erroneous FEGLI coverage, as follows:
– Your agency allowed you to elect FEGLI coverage when you are not entitled;
– An incorrect FEGLI code on your SF 50 (Notification of Personnel Action) gives you more coverage than you elected for;
– Your payroll deductions includes FEGLI premiums for a coverage that you did not choose; and
– OPM allowed you to continue your FEGLI coverage even after you become an annuitant or compensationer.
How to Correct FEGLI Errors
Most of the time, these administrative errors associated with new federal employees’ FEGLI elections can be rectified by your employing agency, and the effective date of your new rectified coverage continues as if the error never happened.
If the FEGLI error is beyond the scope of your agency, the OPM may agree to order correction of an administrative error after reviewing evidence. If this gives you retroactive coverage, the OPM will seek premiums for the retroactive coverage.
The only exception is for erroneous firings and suspensions, where no withholdings are made from your back pay award for FEGLI Basic or FEGLI Optional insurance. But if you are awarded a settlement with no determination that your firing or suspension was erroneous, the decision must be made by OPM.
In such cases, the employing office will seek OPM’s determination on whether the concerned employee’s insurance should be reinstated and whether withholdings are required.