Skip to main content

Request for Refund of Life Insurance Premiums

B-199299 Oct 22, 1980
Jump To:
Skip to Highlights

Highlights

An authorized certifying officer with the National Finance Center, Department of Agriculture, requested an advance decision regarding the refund of premiums for life insurance which were deducted from the salary of a Federal employee. The record showed that, when the employee was first employed in 1969, she waived her life insurance coverage. She was separated and, subsequently, reinstated in 1975 to a career appointment. At the time of reinstatement, her personnel document was erroneously coded to indicate life insurance coverage. She inquired about the deductions from her salary and was informed that she had been covered by life insurance. A subsequent promotion increased the deductions from her salary and, upon inquiry, she was informed that she had never been covered by life insurance since the waiver she signed in 1969 was still in effect. A properly executed waiver of regular insurance or a declination of optional insurance, once received and made effective, remains in effect until canceled even though the employee may transfer to another agency or be reappointed after a break in service. Since the employee never canceled the waiver of life insurance executed in 1969, she was not covered by life insurance during the time premiums were deducted from her salary and could not have received any benefits. The premiums should not have been deducted from her salary and may be refunded, if otherwise proper.

Downloads

GAO Contacts

Office of Public Affairs