Would I ever want to decline premium conversion?
Premium conversion may result in somewhat lower Social Security benefits for those federal employees who pay Social Security taxes on their salaries, primarily those under the Federal Employees Retirement System. Therefore, in rare situations mainly involving lower-paid employees, it may be advantageous to pay full Social Security taxes rather than the lower ones resulting from premium conversion.

An employee participating in premium conversion generally has the same flexibility as a person who chooses not to participate. Because of the tax laws, there are two exceptions that might play into a decision to take or waive premium conversion. Those who waive premium conversion can at any time drop health insurance or change from a self and family enrollment to self-only. However, those participating in premium conversion may do so only during an open season or at the time of a “qualifying life event”

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