2012 FECA Bulletins which have previously been issued by the DFEC but have since expired or been superseded by another Bulletin, Circular or inclusion in the FECA Procedure Manual.
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Bulletin |
Subject |
|---|---|
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FECA Bulletin No. 12-01 |
This was a War Hazards Compensation Act Bulletin. |
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Life Insurance - Optional Life Insurance Rates Change Effective January 1, 2012, and Other Life Insurance Information |
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Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments for March 1, 2012 |
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Compensation Pay: Compensation Rate Changes Effective January 2012 |
Attention: This bulletin has been superseded and is inactive.
FECA BULLETIN NO. 12-02
Issue Date: February 24, 2012
Subject: Life Insurance - Optional Life Insurance Rates Change Effective January 1, 2012, and Other Life Insurance Information.
Background: While in receipt of compensation benefits, claimants are entitled to remain enrolled in the Federal Employees' Group Life Insurance (FEGLI) program. To continue this coverage, enrollees for Optional Life Insurance (OLI) coverage must have the appropriate withholdings made from their compensation payments. OLI includes three options - Option A (Standard), Option B (Additional), and Option C (Family).
An enrollee may have any combination of the options. The various combinations are known as "classes". Exhibit 1 of this Bulletin is a listing of these life insurance combinations by "class code". These are the codes that are provided by the employing agency on Form CA-7, Claim for Compensation, and we are required to make the appropriate premium deductions in the Compensation application of the Integrated Federal Employees Compensation System (iFECS). When the class code and the yearly salary are keyed during data entry in iFECS, the system will calculate the appropriate withholdings.
The withholdings are based on the age band of the insured, defined by the age of the enrollee. The enrollee is considered to have attained the age of a particular band as of the first pay period subsequent to his or her birthday. All withholdings for OLI usually stop on the first compensation period to occur after the enrollee reaches their 65th birthday. However, a notice is sent to claimants 60 days prior to their 65th birthday, informing them of their option to continue life insurance. The claimant must contact the Office of Personnel Management (OPM) to make the election, and OPM will inform OWCP as to what level of coverage is to be maintained.
In order for an enrollee to have OLI coverage, they must also have Basic Life Insurance (BLI). Prior to January 1, 1990, BLI was free of charge, and no deductions are required for any OWCP claimants with a date of injury prior to that date. For all claims with a date of injury after January 1, 1990, OWCP is also required to withhold premiums for the Basic Life Insurance coverage. The enrollee may also elect Post-Retirement Basic Life Insurance (PRBLI) should they wish to continue their BLI coverage past age 65. PRBLI is mandatory for any enrollee that carries OLI past age 65.
At the time of an enrollee's death, OPM will send an inquiry to OWCP concerning life insurance withholdings during the enrollee's receipt of compensation benefits. It is imperative that OWCP verify the fact that premiums were or were not withheld from compensation benefits. Timely verification is extremely important as no action may be taken by either OPM or FEGLI until OWCP's verification is received.
The previous rate changes for life insurance coverage were effective January 12, 2005, updating the rates for enrollees over the age of 65.
Purpose: To inform the appropriate personnel of the new premium rates for life insurance coverage effective January 1, 2012. The new rates are lower for some age bands in Option B, Option C, as well as the amounts withheld for the Post-Retirement Basic Life Insurance coverage.
There is no change in premiums for BLI or Option A coverage.
References: Office of Personnel Management (OPM), Benefits Administration Letter, No. 11-205, dated November 10, 2011.
Applicability: Appropriate National Office and District Office personnel.
Actions:
1. The new rates were available in iFECS on January 5, 2012.
2. iFECS has been updated as of the periodic disability payroll for the period effective January 15, 2012 through February 11, 2012. Cases with gross overrides should be recalculated to reflect the new rates for life insurance coverage.
3. There will be no notices sent to the enrollees receiving an adjustment on the periodic disability payroll. Please note that changes in the net compensation amount paid after February 11, 2012 can be the result of one or more of the following factors: health insurance premiums adjustments; life insurance premium adjustments (both for rate or age band changes); or Min/Max salary adjustments.
4. The life insurance codes and new rates are attached to this Bulletin as Exhibits. The complete list of all previous premium changes are also attached as Exhibits. They are listed as
Exhibit 2 Rate changes effective January 1, 2012
Exhibit 3 Rate changes effective January 9, 2005
Exhibit 4 Rate changes effective January 11, 2004
Exhibit 5 Rate changes effective January 12, 2003
Exhibit 6 Rate changes effective April 24, 2000
Exhibit 7 Rate changes effective April 24, 1999
Exhibit 8 Rate changes effective January 10, 1993
Exhibit 9 Rate changes effective August 3, 1986
Exhibit 10 Rate changes effective May 17, 1984
Exhibit 11 Rate changes effective April 23, 1981
5. Post-Retirement Basic Life Insurance Coverage.
- The rates for the PRBLI coverage have also reduced. Exhibit 12 is a complete list of the PRBLI rates and effective dates for this coverage. This coverage is elected at time of the claimant's retirement (or at age 65 if they are on the OWCP rolls) and determines the rate at which BLI will decline in value during the life of the claimant. Exhibit 13 lists the BLI rates and effective dates.
- PRBLI coverage involves one of three choices affecting the original BLI coverage. The claimant may elect reductions in the amount of BLI coverage at the time of retirement of 75 percent, 50 percent, or No Reduction (i.e. maintaining 100% of BLI coverage). When the election is made, OPM will advise OWCP of the election, the date to commence withholdings, and the salary upon which the withholdings should be calculated.
- There is no cost or withholdings for the 75 percent reduction. Withholdings for the 50 percent and no reduction are withheld from compensation benefits effective the date the enrollee "retires" for life insurance purposes. Withholdings continue for life, or until the coverage is either cancelled or otherwise discontinued.
- The per annum salary provided by OPM will be the base upon which to calculate the biweekly withholdings. It is generally a different amount from that upon which the salary for wage-loss compensation is calculated. This is due to the fact that optional life insurance coverage is withheld during the entire period compensation, is paid up to age 65, and is based on the salary at time of disability or date of recurrence. PRBLI coverage must be withheld from date of retirement, though it can be elected prior to that time. Withholdings for PRBLI are based on the final salary as reported by OPM.
Disposition: This bulletin is to be retained until the FECA PM has been updated.
DOUGLAS C. FITZGERALD
Director for Federal Employees' Compensation
Distribution: All Claims Staff and Fiscal Personnel
OPTIONAL LIFE INSURANCE CODING STRUCTURE
OPTION A - STANDARD - $10,000 in coverage
OPTION B - ADDITIONAL - Up to 5 times the annual salary
OPTION C - FAMILY COVERAGE
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CLASS |
EXPLANATION OF CODE |
|---|---|
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A ---------- |
A0 - Ineligible |
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CLASS |
EXPLANATION OF CODE |
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M ---------- |
M1 - Basic + Option B (2X) + Option C (1X) |
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CLASS |
EXPLANATION OF CODE |
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Y ---------- |
Y1 - Basic + Option B (5X) + Option C (1X) |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE JANUARY 1, 2012
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
| Age | Rate |
|---|---|
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Under 35 |
$0.02 |
| Age | Rate |
|---|---|
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Under 35 |
$0.22 |
In iFECS, the premiums will change the first periodic pay cycle following the age event (i.e. the claimant's birthday when they move into a new age bracket for life insurance). If the enrollee elects to continue coverage after age 65, premiums will continue for life.
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE JANUARY 9, 2005
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
| Age | Rate |
|---|---|
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Under 35 |
$0.03 |
| Age | Rate |
|---|---|
|
Under 35 |
$0.27 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE JANUARY 11, 2004
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
| Age | Rate |
|---|---|
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Under 35 |
$0.03 |
| Age | Rate |
|---|---|
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Under 35 |
$0.27 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE JANUARY 12, 2003
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
| Age | Rate |
|---|---|
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Under 35 |
$0.03 |
| Age | Rate |
|---|---|
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Under 35 |
$0.27 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE APRIL 24, 2000
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
| Age | Rate |
|---|---|
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Under 35 |
$0.03 |
| Age | Rate |
|---|---|
|
Under 35 |
$0.27 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE APRIL 24, 1999
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
| Age | Rate |
|---|---|
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Under 35 |
$0.03 |
| Age | Rate |
|---|---|
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Under 35 |
$0.27 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE JANUARY 10, 1993
| Age | Rate |
|---|---|
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Under 35 |
$0.40 |
| Age | Rate |
|---|---|
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Under 35 |
$0.04 |
| Age | Rate |
|---|---|
|
Under 35 |
$0.30 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE AUGUST 3, 1986
| Age | Rate |
|---|---|
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Under 35 |
$0.40 |
| Age | Rate |
|---|---|
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Under 35 |
$0.04 |
| Age | Rate |
|---|---|
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Under 35 |
$0.30 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE MAY 17, 1984
| Age | Rate |
|---|---|
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Under 35 |
$0.55 |
| Age | Rate |
|---|---|
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Under 35 |
$0.04 |
| Age | Rate |
|---|---|
|
Under 35 |
$0.30 |
Back to Top of FECA Bulletin No. 12-02
BI-WEEKLY OPTIONAL LIFE INSURANCE RATES
EFFECTIVE APRIL 23, 1981
| Age | Rate |
|---|---|
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Under 35 |
$0.60 |
| Age | Rate |
|---|---|
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Under 35 |
$0.05 |
| Age | Rate |
|---|---|
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Under 35 |
$0.50 |
Back to Top of FECA Bulletin No. 12-02
POST-RETIREMENT BASIC LIFE INSURANCE
Bi-Weekly Rates Prior to December 1988
75% Reduction in Coverage: No Cost
50% Reduction in Coverage: $0.30 foreach $1,000 ofcoverage
NO Reduction in Coverage: $0.81 foreach $1,000 ofcoverage
Bi-Weekly Rates Effective December 1988
75% Reduction in Coverage: No Cost
50% Reduction in Coverage: $0.24 foreach $1,000 ofcoverage
NO Reduction in Coverage: $0.78 foreach $1,000 ofcoverage
Bi-Weekly Rates Effective April 25, 1999
75% Reduction in Coverage: No Cost
50% Reduction in Coverage: $0.27 foreach $1,000 ofcoverage
NO Reduction in Coverage: $0.94 foreach $1,000 ofcoverage
Bi-Weekly Rates Effective January 12, 2003
75% Reduction in Coverage: No Cost
50% Reduction in Coverage: $0.60 foreach $1,000 ofcoverage
NO Reduction in Coverage: $1.83 foreach $1,000 ofcoverage
Bi-Weekly Rates Effective January 1, 2012
75% Reduction in Coverage: No Cost
50% Reduction in Coverage: $0.59 foreach $1,000 ofcoverage
NO Reduction in Coverage: $1.79 foreach $1,000 ofcoverage
PLEASE NOTE: Premiums are based on the per annum salary ofthe claimant at retirement. OPM must advise OWCP ofthe coverage, and will provide the effective date and the per annum salary.
Back to Top of FECA Bulletin No. 12-02
BASIC LIFE INSURANCE
BI-WEEKLY RATES
Effective April 1, 1981: $0.240 for each $1,000 of coverage
Effective May 1, 1984: $0.220 for each $1,000 of coverage
Effective August 1, 1985: $0.200 for each $1,000 of coverage
Effective August 1, 1986: $0.185 for each $1,000 of coverage
Effective January 10, 1993: $0.165 for each $1,000 of coverage
Effective April 25, 1999: $0.155 for each $1,000 of coverage
Effective January 12, 2003: $0.150 for each $1,000 of coverage
PLEASE NOTE: Premiums are only withheld until age 65. Premiums are calculated using the "BASE" pay on which compensation is computed. This amount is rounded-up to the nearest $1,000 and an additional $2,000 is added.
Back to Top of FECA Bulletin No. 12-02
FECA BULLETIN NO. 12-03
Issue Date: April 6, 2012
Expiration Date: February 28, 2013
Subject: Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments for March 1, 2012.
Reference: FECA Consumer Price Index (CPI) Amendment, dated January 6, 1981; Bureau of Labor Statistics Consumer Price Index Publication for December 2009 (USDL-10-0011).
Purpose: To furnish information on the CPI adjustment process for March 1, 2012.
The cost-of-living adjustments granted to a compensation recipient under the FECA are based on the "Consumer Price Index for Urban Wage-Earners and Clerical Workers" (CPI-W) figures published by the Bureau of Labor Statistics (BLS). The annual cost-of-living increase is calculated by comparing the base month from the prior year to the base month of the current year, with the percentage of increase adjusted to the nearest one-tenth of 1 percent. 5 U.S.C. 8146(a) establishes the base month for the FECA CPI as December.
December 2010 had a CPI-W level of 215.262, and the December 2011 level was reported by BLS as 222.166. This means that the new CPI increase, adjusted to the nearest one-tenth of one percent, is 3.2 percent. The increase is effective March 1, 2012, and is applicable where disability or death occurred before March 1, 2011. In addition, the new base month for calculating the future CPI is December 2011.
The maximum compensation rates1, which must not be exceeded, are as follows:
$ 8,094.81 per month
$ 7,472.13 each four weeks
$ 1,868.03 per week
$ 373.61 per day (for a 5-day week)
Action: National Office Production staff will update the iFECS CPI tables and have all payment records re-calculated when the iFECS system is not in use by District Office personnel. This will occur on or about March 1, 2012. The March 10, 2012 check will be paid at the 2011 rate but will include the supplemental CPI payment for the period of March 1st to March 10th. The following periodic roll check will reflect the updated 2012 28-day amount. Please note that if there are any cases with fixed gross overrides, there will be no supplemental record created. These cases must be reviewed to determine if CPI adjustments are necessary, and, if so, a manual calculation will be required. If the gross override payment is in fact eligible for annual CPI increases, the payment plate should be adjusted in the iFECS system to pay as a "Gross Override with CPI."
1. Minimum and Maximum Adjustments Listings. Form CA-841, Cost-of-Living Adjustments; Form CA-842, Minimum Compensation Rates; and Form CA-843, Maximum Compensation Rates, should be updated to indicate the increase for 2012. Attached to this directive is a complete list of all the CPI increases and effective dates since October 1, 1966 (through March 1, 2012) for reference.
2. Forms.
a. All claimants will be provided a notice with their Benefit Statements indicating the amount of this year's increase. The Treasury will include this notice as a "stuffer card" with every Benefit Statement issued for the March 10, 2012 rolls.
b. If claimants write or call for verification of the amount of compensation paid (possibly for mortgage verification; insurance verification; loan application; etc.), please continue to provide this data in letter form from the district office. Many times a Benefit Statement may not reach the addressee and regeneration of the form is not possible. A letter indicating the amount of compensation paid every four weeks will be an adequate substitute for this purpose.
Applicability: Appropriate National Office and District Office personnel.
Disposition: This Bulletin is to be retained in Part 5, Benefit Payments, Federal (FECA) Procedure Manual, until further notice or the indicated expiration date.
DOUGLAS C. FITZGERALD
Director for Federal Employees' Compensation
Attachment
Distribution: All Claims Staff and Fiscal Personnel
Back to Top of FECA Bulletin No. 12-03
|
EFFECTIVE DATE |
RATE |
EFFECTIVE DATE |
RATE |
|---|---|---|---|
|
10/01/66 |
12.5% |
03/01/87 |
0.7% |
Prior to September 7, 1974, the new compensation after adding the CPI is rounded to the nearest $1.00 on a monthly basis, or the nearest multiple of $.23 on a weekly basis ($.23, $.46, $.69, or $.92). After September 7, 1974, the new compensation after adding the CPI is rounded to the nearest $1.00 on a monthly basis, or the nearest $.25 on a weekly basis ($.25, $.50, $.75, or $1.00).
|
Prior to 09/07/74 |
.08-.34 = .23 |
Eff. 11/01/74 |
.13-.37 = .25 |
1 Per Executive Order 13561 signed by President Obama on December 22, 2010, the GS pay schedules for Federal civilian employees will remain at 2010 levels for 2011 and 2012.
Back to Top of FECA Bulletin No. 12-03
Attention: This bulletin has been superseded and is inactive.
FECA BULLETIN NO. 12-04
Issue Date: April 6, 2012
Expiration Date: January 1, 2013
Subject: Compensation Pay - Consumer Price Index (CPI) Cost-of-Living Adjustments for March 1, 2012.
Reference: Memorandum for Executive Heads of Departments and Agencies dated December 22, 2010; and the attachment for the 2012 General Schedule.
Background: On December 22, 2010, the President signed Executive Order 13561 implementing a salary freeze for the General Schedule basic pay. The rates of pay established for the 2010 GS Pay Schedule are to remain in effect through 2012. Normally, the applicability under 5 U.S.C. 8112 only includes an increase in the basic General Schedule, so no increase to the minimum or maximum rates of compensation will be afforded this year. Any additional increase for locality-based pay is excluded as always.
Purpose: To inform the appropriate personnel of the minimum/maximum rates of compensation and the adjustment procedures for affected cases on the periodic disability and death payrolls.
The maximum compensation rate payable is based on the scheduled salary of a GS-15, step 10, which remains $129,517 per annum. The basis for the minimum compensation rate is the salary of a GS-2, Step 1, which remains $20,017 per annum. The actual rates are outlined below.
Effective January 3, 2010, and continuing for 2012:
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Type |
Minimum |
Maximum |
|---|---|---|
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Disability Claims: |
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Death claims: |
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Action: The Integrated Federal Employees' Compensation System (iFECS) will not require updates to the periodic disability and death payrolls, as the rates have not changed since the prior adjustments were made.
Applicability: Appropriate National Office and District Office personnel.
Disposition: This Bulletin is to be retained in Part 5, Benefit Payments, Federal (FECA) Procedure Manual, until further notice or the indicated expiration date.
DOUGLAS C. FITZGERALD
Director for Federal Employees' Compensation
Distribution: All Claims Staff and Fiscal Personnel
Back to Top of FECA Bulletin No. 12-04