Page 46 - The Informed Fed--Hearn (edited 10.29.20)
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on their annual Statement of Benefits, though it does not appear on the
               paystub.

               Basic Life Insurance Coverage

                   As we mentioned, postal workers get this coverage at no charge. All
               other  branches  pay  $0.15  per  $1,000  of  coverage.  Basic  Coverage  is
               calculated using your Base Pay. You can calculate your Basic Coverage
               by taking your Base Pay - round it up to the next thousand, add $2,000
               and that equals Total Basic Coverage. Consider this simple example. Bob
               has a base pay of $45,300. His Basic Coverage would be: $45,300 (Base
               Pay) $46,000 (Rounded Up) + $2,000 equaling $48,000 which is his Total
               Basic Coverage. As you get pay raises and COLAs, your Basic Coverage
               will also increase. You use the exact same calculation, with your new base
               pay after each raise. Your Final Expense Benefit and your Basic Life
               Insurance  includes  a  little-known  and  seldom-claimed  final  expense
               benefit. If you retire prior to age 65, your Basic Life Insurance will remain
               in effect until age 65. For the next 38 months, it will reduce by 2% each
               month until the benefit reaches 25% of the original amount. Example:
               If  Bob  earns  $52,000  at  retirement,  his  Basic  Insurance  coverage  is
               $54,000 until age 65. Over the next 3 years and 2 months, his coverage
               will  reduce  each  month  until  it  reaches  $13,500  (25%).  Most  federal
               employees are not aware of the fact that this coverage stays in effect for
               life. Because most employees and their beneficiaries are unaware of this
               final expense benefit, it goes unclaimed in many cases. To take advantage
               of this added benefit, inform your executor and your beneficiaries of this
               information.  Put  a  note  with  your  will,  final  papers  and  insurance
               documents. Beneficiaries should call the Retirement Information Office
               at 1-888-767-6738 for assistance.
                   Extra Benefit--Your Basic Coverage has an additional feature called
               the Extra Benefit. The Extra Benefit is basically a bonus on your Basic
               Coverage for being under the age of 45. Employees who are under the



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