Assessment of Federal Employees' Group Life Insurance Program
GGD-86-28
Published: Apr 07, 1986. Publicly Released: Apr 07, 1986.
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Highlights
In response to a congressional request, GAO: (1) compared the Federal Employees' Group Life Insurance (FEGLI) Program to private sector programs; (2) determined whether the program's premiums could be reduced; (3) identified any needed program reforms; and (4) analyzed FEGLI participation.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| Since total federal compensation currently lags behind the private sector and FEGLI is inferior to private sector programs, Congress should consider making FEGLI comparable to the benefits available to private sector employees. |
Closed – Not Implemented
|
Because OPM does not intend to act on this recommendation, it should be closed. |
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Office of Personnel Management | The Director, OPM, should reduce FEGLI premiums by: (1) recalculating program costs using economic assumptions consistent with those used in determining the cost of the civil service retirement system; and (2) eliminating the charge to employees for the unfunded liability. |
Closed – Implemented
OPM recalculated FEGLI premiums using economic assumptions consistent with the civil service retirement system which, along with other changes, resulted in a 7.5-percent premium reduction for basic insurance.
|
| Office of Personnel Management | The Director, OPM, should seek legislative authorization to permit the investment of FEGLI funds in special nonmarketable federal securities. |
Closed – Not Implemented
Because OPM does not intend to act on this recommendation, it should be closed.
|
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Topics
Federal employeesFringe benefit costsFunds managementInsurance cost controlInsurance premiumsLife insuranceProgram managementPrivate sectorFinancial instrumentsTrust funds