Yes, if you are retiring on an immediate annuity and you have been covered by the same level of FEGLI options for the five years of service immediately preceding the starting date of your annuity—or from the full period of service during which the insurance was available to you, if less than five years.
For Basic, prior to retiring, you must make a written election as to the amount of coverage you want to retain on turning 65, if you retire before reaching that age, or immediately, if you retire afterward. Unless you have elected a partial living benefit, you have three choices:
A 75 percent reduction, in which coverage is reduced by 2 percent a month beginning at age 65, until it reaches 25 percent of the policy value.
A 50 percent reduction, in which coverage is reduced by 1 percent a month beginning at age 65, until it reaches 50 percent of the policy value.
No reduction, in which the policy value remains unchanged.
If you make no choice, the default is a 75 percent reduction.
If you elected a partial living benefit, you have only two choices: termination of the insurance and conversion to an individual policy, or no reduction.
For optional insurance, at the end of the calendar month that follows your 65th birthday or your retirement, whichever is later:
Option A will be reduced by 2 percent each month until it reaches 25 percent of its face value.
Option B and Option C will be reduced by 2 percent each month for 50 months, at which time coverage ceases, unless you elect to keep up to the full amount (of one or both) in effect.
Premiums vary according to the amount of coverage and your age. See Chapter 2, Section 2 of the Federal Employees Almanac.