With the substantial number of federal employees being subjected to reductions in force (RIFs), taking early retirement under the Voluntary Early Retirement Authority (VERA), or resigning or retiring early under the deferred resignation program, the issue arises as to what happens to employees’ dental and vision benefits under the Federal Employees Dental and Vision Insurance Program (FEDVIP) in that situation.  The answer depends on several factors. 

FEDVIP is ultimately governed by two statutes (5 U.S.C. Chapter 89A for dental, and 5 U.S.C. Chapter 89B for vision), which cannot be modified without action by Congress, although OPM is authorized to issue implementing regulations (which it has done in 5 C.F.R. Part 894). For separating employees, what happens to their FEDVIP benefits depends on whether or not they are retiring.  For those not retiring, the FEDVIP program terminates coverage at separation from federal service, with no option for temporary continuation of coverage or for conversion to a non-group policy.  See 5 C.F.R. §§ 894.601(a); 894.603.  Employees who leave the federal government for more than 30 days then reenter federal service can enroll in FEDVIP upon their return, whether or not they were enrolled before; those who return after a break of 30 days or less can only reenroll if they were enrolled in FEDVIP prior to separation.  See 5 C.F.R. § 894.512. 

Employees retiring upon separation (either under a VERA, under discontinued service retirement (DSR) based on a RIF separation or retiring under the deferred resignation program because they are otherwise eligible to retire) may be able to retain their FEDVIP benefits into retirement.  See 5 C.F.R. § 894.304.  In particular, the employee must be moving into “immediate retirement” status (whether it be MRA+10, MRA+30, early retirement under VERA or DSR, or disability retirement); a deferred retirement does not qualify (although an exception applies where an employee eligible for MRA+10 retirement postpones when they being collecting their annuity, under which the employee can potentially reenroll under FEDVIP when they claim their annuity).  For those applicants who might only be determined to be eligible for “immediate retirement” after a delay (for example, if the Office of Personnel Management delays in finding the employee eligible for disability retirement), the employee can reenroll in FEDVIP after their retirement application is approved.  Premiums for retirement annuitants are at the same rates as for current federal employees.  

Unlike FEHB health benefits, there is no requirement that an annuitant have been covered continuously for the 5 years prior to retirement in order to retain FEDVIP in retirement. 

If you are a federal employee facing a RIF or separation under a VERA or the deferred resignation program, and wish to discuss your rights, consider contacting Gilbert Employment Law to request an initial consultation.