The Federal Employees Dental and Vision Insurance Program generally provides coverage into retirement, further enabling senior citizens to maintain essential coverages, such as dental and vision, throughout their retirement years. This federal insurance program extends special provisions of interest to retirees and late-career employees. For example, enrollees are not required to enroll in FEDVIP five years before retiring should they choose to continue enrollment as they retire. However, your insurance policy may be affected by specific details surrounding employment, especially as you look toward retirement.
Whether you retire on an immediate or disability annuity or begin receiving workers’ compensation, you may qualify to keep your coverage. A number of circumstances may cause your FEDVIP coverage to end, including separation from service or retiring on the minimum retirement age +10 annuity. You do have the option of enrolling once more within the 60 days in which your annuity began if you initially chose to postpone.
Retiring on a deferred annuity is a different story, though, and may cause the complete discontinuation of your FEDVIP coverage. In this case, you will be ineligible to enroll again. Reemployment within the government post-retirement will also have less severe consequences in terms of coverage. Upon reemployment into an eligible federal position, you will be required to contact the plan administrator to submit allotment requests to the appropriate agency. By doing so, your agency will be properly equipped to make the proper allotments from your income as an annuitant.
Your coverage as someone receiving compensation or annuitant will continue to remain in effect as long as you carry on receiving an annuity, provided that your premiums are paid in full and on time. Cancellation of FEDVIP coverage during the open enrollment period or other termination in coverage due to insufficient compensation or an annuity will cause your coverage to end prematurely. Furthermore, if you did not enroll within FEDVIP coverage as an annuitant, you will have only 60 days to enroll within FEDVIP. This is especially important for individuals seeking insurance coverage who may have experienced reemployment in an eligible federal position.
Unfortunately, FEDVIP may be one of the more expensive coverage options to carry into your retirement years. For example, active employees are required to pay their premiums using pre-tax dollars, whereas the opposite is true in the case of annuitants. Depending on whether you are looking to enroll into a self, self and family, or self plus one policy, FEDVIP may or may not offer more flexibility compared to an FEHB, depending on your eligibility. As open enrollment approaches, it is time to consider enrolling or changing your current insurance coverage.
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Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.
