owcp fegli deductions???

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   ANYBODY seen anything like this? Date of injury 3/20/89, both OPM and OWCP entitled,elected to receive latter.  First 18 months no FEGLI deductions, then receive notice of overpayment(subsequently waived) for failure to deduct for those months.  Sent  SF-2818(1/90 edition)which states at top,"Do not complete if(injury, entitlement, etc)is before 1/1/90." No contact with OPM(states, "dropped, inactive file")so CE advised to complete anyhow,"absolutely no effect on payments," due to statute.  Recently resumed Congressional inquires to resolve, most recently advised to "hire attorney," implying US District Court action, stating "you have exhausted the capabilities of our(congressional)office."

Finally found out about Ombudsperson at OPM, working on it now for about two months, pending.
Over $20K in FEGLI withheld thus far, exceeding "payout" of $35K when adjusted for inflation.
I contend that the withholding of the $20K is incorrect(it continues at rates between $65 and $110 monthly) and want refund and current withholdings to stop.  

Ran across this in FEGLI "handbook" info: Public Act 303, 5/29/90, Statute 250, "authorizes payment of government contribution for Basic life insurance(which is all I have)for individuals under age 65 who retire or commence receving compensation after 12/31/89."

On top of this all none of the "Designation of Beneficiary" forms completed within the last 20 years are on file, according to recent FOIA OPM file.  Due to "dropped, inactive" status at OPM?  Each agency OWCP and OPM states the other is responsible for FEGLI premium calculation and withholding.  Any ideas?  Please help!

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gleebeck Members Profile Send Private Message Find Members Posts Add to Buddy List Newbie Joined: 28 Jul 2010 Location: il Posts: 2	Post Options Post Reply Quote gleebeck Report Post Quote Reply Topic: owcp fegli deductions??? Posted: 29 Jul 2010 at 11:10am
	ANYBODY seen anything like this? Date of injury 3/20/89, both OPM and OWCP entitled,elected to receive latter. First 18 months no FEGLI deductions, then receive notice of overpayment(subsequently waived) for failure to deduct for those months. Sent SF-2818(1/90 edition)which states at top,"Do not complete if(injury, entitlement, etc)is before 1/1/90." No contact with OPM(states, "dropped, inactive file")so CE advised to complete anyhow,"absolutely no effect on payments," due to statute. Recently resumed Congressional inquires to resolve, most recently advised to "hire attorney," implying US District Court action, stating "you have exhausted the capabilities of our(congressional)office." Finally found out about Ombudsperson at OPM, working on it now for about two months, pending. Over $20K in FEGLI withheld thus far, exceeding "payout" of $35K when adjusted for inflation. I contend that the withholding of the $20K is incorrect(it continues at rates between $65 and $110 monthly) and want refund and current withholdings to stop. Ran across this in FEGLI "handbook" info: Public Act 303, 5/29/90, Statute 250, "authorizes payment of government contribution for Basic life insurance(which is all I have)for individuals under age 65 who retire or commence receving compensation after 12/31/89." On top of this all none of the "Designation of Beneficiary" forms completed within the last 20 years are on file, according to recent FOIA OPM file. Due to "dropped, inactive" status at OPM? Each agency OWCP and OPM states the other is responsible for FEGLI premium calculation and withholding. Any ideas? Please help!

edalder Members Profile Send Private Message Find Members Posts Add to Buddy List Senior Member Joined: 09 Oct 2001 Location: CA Posts: 1028	Post Options Post Reply Quote edalder Report Post Quote Reply Posted: 30 Jul 2010 at 10:04am
	If your date of injury is before 01/01/1990, then your BASIC FELGI should be free to you. The law on this did change as of 01/01/1990. OWCP beneficiaries who were hurt on or after 01/01/1990 and who are enrolled in FEGLI do have to pay basic FEGLI premiums from their OWCP benefits. However, if you have any of the optional FEGLI, you do have to pay the premiums for those options even if your injury was before 01/01/1990. Unless you had a very high annual salary in 1989, I can't see your basic FEGLI premiums exceeding 20k even over 21 years. Seems to me that OWCP was and is deducting some optional FEGLI premiums as well, for the total premium amount to have been that high. Basic FEGLI premiums do not change over time until you are 65, when the deductions stop for everyone, including retirees., They are calculated on your annual salary at the time of separation from Federal service, which you indicate is probably $35,000. That salary is frozen. Therefore, even if OWCP did incorrectly deduct these premiums, there's no way you would be owed a refund of 20k. The basic FEGLI premium is not that high if the annual salary for basic FEGLI is only 35k. What does increase over time are the optional FEGLI premiums. They increase every five years, starting at either age 30 or 35. The steepest increase is the one that occurs during the month that you turn 60, but the one that occurs at age 55, comes as a bit of shocker to most people as well. Go to www.opm.gov/insure/fegli and start playing with the FEGLI calculator. If there is no designation of beneficiary form on file, then the FEGLI life insurance pays out on a standard order of preference, generally to your spouse first, then children, if any, and then to parents/siblings. Of course, you always can file an updated designation of beneficiary form with OPM. You also can cancel your FEGLI at any time. You must do so in writing and you must send the cancellation notice to OPM who in turn notifies OWCP. If you have it, look at your separation SF-50. There is a code on it that shows your FEGLI coverage. Look up the code at the OPM website. You should be able to determine what optional FEGLI you have.
	Kivi

gleebeck Members Profile Send Private Message Find Members Posts Add to Buddy List Newbie Joined: 28 Jul 2010 Location: il Posts: 2	Post Options Post Reply Quote gleebeck Report Post Quote Reply Posted: 01 Aug 2010 at 10:13am
	Thank you for your considered response. But, it is true with regard to the amount of the deductions(between $65 and over $100/monthly, it varies). And, I have only basic life. The whole mess can possibly be attributed to the involvement of both DOL/OWCP and OPM. As mentioned, until contact with Ombudsman at OPM recently the only response I received from them was basically, "Sorry, your file is dropped, inactive," and all inquiries must be directed to DOL/OWCP. DOL/OWCP in turn says repeatedly that all responsibility rests with OPM. Yes, even trying to file the "Designation of Beneficiary" form is unsuccessful-as mentioned, all the last six I have sent(some with return receipt, etc)have apparently not been acted upon-they are not in my recent FOIA requested file and were never sent back, date-stamped as they are supposed to have. Kind of some kind of "black hole?" It feels so. I am hoping with Ombudsman at OPM now involved there will be resolution.