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Office Memorandum + UNITED STATES GOVERNMENT DATE: October 16, 1959 Tolson —— To tsMr. Tolson FROM od. P. Mohr 4 . sumyect >LOYEES' GROUP Tamm Trotter 4 WC. Sultiva FE INS t ; Tele, Room _ - ; f Holloman __ oi t. 5 / Gondy The Director (born 1-1-95) will reach age 65 on 1-1-60. The purpose of this memvurandum is to report the effect of an amendment to the Federal Employees’ Group Life Insurance Act with respect to the Director's insurance coverage. Public Law 86-377. which amended the insurance act, was approved 9-23-59. it provides employees, who reach the age of 65 and continue on an agency's rolls, with full life {insurance eoverage at full premium cost until an employee retires. The Director, ‘with annua! salary of $22,000, presently has life insurance coverage of $20, 000, which is the maximum coverage which the law permits. This coverage will continue ,;, until retirement at full premium cost, which is $5.00 per pay period, providing a ‘| waiver of coverage is not executed. The Director has an option to waive coverage j/ at an time. Jnly on retirement will the 2 percent per month reduction take place. Such reduct: »n of coverage continues for a period of about two years and two months following r<tirement until the coverage is reduced to 25 percent of the face value existing at r.tirement age, which in the Director's case would be $5, 000. The latter amount of coverage would then continue for the rest of his life at no premium cost. It will be recalled that before this amendment was enacted, the 2 percent per month reduction of coverage started once an employee reached age 65. RECOMMENDATION: Wi, Quraes avout Coiled + That the Director indicate his desire to continue or waive his life insurance Coverage. _ OOF o- an x pot ; 4 ocT'a 1959 WBHikea T Yo che , — > ~ ee _—_ee ae y . > a " : 2 f . 7 \ So Bier” heme a