Phase II of Option B life insurance becomes effective

Phase II of additional age bands for Option B life insurance premiums became effective Jan. 1 making new rates applicable mid January.

In September 2002, the Office of Personnel Management announced additional age bands for Option B life insurance premiums, stating the increases would be phased in over a three year period.

Premium increases for Phase I were effective Jan. 12, 2003.

Premium increases under Phase II will affect employees 70 and above.

Although effective Jan. 1, the new rates will actually be applied at the beginning of the first pay period in January, which for most Air Force-serviced employees is Sunday.

Affected employees should see the changes on their Jan. 30 Leave and Earnings Statement.

Employees who don’t plan to take Option B into retirement and wish to decrease or cancel their Option B coverage as a result of the rate increase may do so at any time, but should submit the election by Saturday to avoid paying any of the increased premium rates.

As always, elections will be submitted via the BEST automated web or phone systems.

Additional information can also be found on the OPM Web site at www.opm.gov/insure /life/index.htm.