skip navigation

PUBLICATIONS

Register for Latest Research

Stay Informed
Register with NCJRS to receive NCJRS's biweekly e-newsletter JUSTINFO and additional periodic emails from NCJRS and the NCJRS federal sponsors that highlight the latest research published or sponsored by the Office of Justice Programs.

NCJRS Abstract

The document referenced below is part of the NCJRS Virtual Library collection. To conduct further searches of the collection, visit the Virtual Library. See the Obtain Documents page for direction on how to access resources online, via mail, through interlibrary loans, or in a local library.

 

NCJ Number: 69446 Find in a Library
Title: SEEKING TO IMPROVE THE FEDERAL EMPLOYEES GROUP LIFE INSURANCE PROGRAM (FROM CASES IN ACCOUNTABILITY, P 87-92, 1979, BY ERASMUS H KLOMAN - SEE NCJ-69444)
Author(s): R E SHELTON
Date Published: 1979
Page Count: 6
Sponsoring Agency: Westview Press, Inc
Boulder, CO 80301
Sale Source: Westview Press, Inc
Marketing Director
5500 Central Avenue
Boulder, CO 80301
United States of America
Language: English
Country: United States of America
Annotation: THE GENERAL ACCOUNTING OFFICE'S (GAO) FEDERAL PERSONNEL AND COMPENSATION DIVISION AND THE HOUSE SUBCOMMITTEE CONDUCTED A SURVEY OF THE FEDERAL EMPLOYEES GROUP LIFE INSURANCE (FEGLI) PROGRAM.
Abstract: THE PROGRAM HAD GENERATED SERIOUS QUESTIONS BECAUSE HIGH PREMIUM RATES WERE DRIVING YOUNGER AND BETTER-RISK EMPLOYEES FROM THE PROGRAM, AND POOR RETIREMENT BENEFITS WERE MAKING OLDER EMPLOYEES DISSATISFIED. THE SURVEY THUS COVERED FEDERAL PROGRAMS PROVIDING SURVIVOR BENEFITS, THE DESIGN AND TOTAL COST OF GROUP LIFE INSURANCE PROGRAMS, AND THE GOVERNMENT'S RELATIONSHIP WITH PRIVATE INSURANCE FIRMS (THE PRIME INSURANCE CARRIER). THE 1977 REPORT SHOWED THAT THE GOVERNMENT WAS NOT BUYING LIFE INSURANCE AS GENERALLY BELIEVED, BUT WAS OPERATING AS A SELF-INSURER. FEDERAL EMPLOYEES WERE RECEIVING LESS AND PAYING MORE FOR THEIR LIFE INSURANCE THAN THEIR NONFEDERAL COUNTERPARTS. THE REPORT AFFIRMED THAT FEGLI COULD BE RESTRUCTURED TO MAKE IT MORE EQUITABLE AND COMPARABLE TO NONFEDERAL PROGRAMS AT NO INCREASE IN COST. FURTHER, WHILE OVERALL DEATH BENEFITS WERE GENERALLY COMPARABLE TO PRIVATE SECTOR COVERAGE, FEDERAL EMPLOYEES WERE REQUIRED TO CONTRIBUTE GREATER AMOUNTS TOWARD THE COSTS OF THE PROGRAMS THAN THEIR NONFEDERAL COUNTERPARTS. LIFE INSURANCE COVERAGE WAS SUPERIOR IN THE NONFEDERAL SECTOR AND WAS USUALLY FREE TO EMPLOYEES. UNDER FEGLI, THE GOVERNMENT ASSUMED ALL LIABILITIES AND RISKS, ESTABLISHED AND COLLECTED PREMIUMS, AND MANAGED MOST OF THE FUNDS. THUS, GAO RECOMMENDED THAT CONGRESS RESCIND THE REQUIREMENT THAT FEGLI PAY STATE PREMIUM TAXES AND INSURANCE COMPANY RISK CHARGES. CONGRESSIONAL RESPONSES TO THE GAO'S EFFORTS WERE POSITIVE. THE CIVIL SERVICE COMMISSION ISSUED A MORE ACCURATE, INFORMATIVE, AND DESCRIPTIVE PAMPHLET ON THE FEGLI PROGRAM (AS THERE HAD BEEN COMPLAINTS THAT THE PROGRAM WAS FALSELY ADVERTISED AS LOW-COST INSURANCE). MOREOVER, THE COMMISSION REDUCED THE FEGLI PREMIUM BY ALMOST 30 PERCENT. SIX NOTES AND THREE STUDY QUESTIONS ARE PROVIDED.
Index Term(s): Insurance fraud; US Government Accountability Office (GAO)
To cite this abstract, use the following link:
http://www.ncjrs.gov/App/publications/abstract.aspx?ID=69446

*A link to the full-text document is provided whenever possible. For documents not available online, a link to the publisher's website is provided. Tell us how you use the NCJRS Library and Abstracts Database - send us your feedback.