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FPCD-81-47 1 (1981-08-21)

handle is hein.gao/gaobabchz0001 and id is 1 raw text is: 




REPORT BY THE


Comptroller General


OF THE UNITED STATES


Federal Life Insurance Changes Would

Improve Benefits And Decrease Costs




The Federal Employees' Group Life Insurance
Act of 1980 added two options to improve
postreti rement insurance coverage.

GAO found that (1) the single premium rate
established for each of the 1980 options is                         116185
inequitable; the program requires younger
retirees to pay extra premiums without
providing additional benefits until age 65, (2)
a change correlating postretirement benefits
with length of program participation and in-
creasing the minimum post-age 65 coverage to
50 percent would not require any increase in
premiums, would eliminate certain program
inequities, and would make postretirement
benefits more comparable with non-Federal
employer insurance plans, and (3) the contin-
ued payment of insurance company risk
charges is unwarranted since no insurance risk
is assumed by anyone except the Government.


     FPCD-81-47
AUGUST 21, 1981


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