Changes

Basic coverage is paid 2/3 by the employee and 1/3 by the government (except for [[United States Postal Service]] employees who pay zero for their Basic coverage) and is a flat rate for all employees (and retirees under age 65) regardless of age.  Option coverage is paid 100 percent by the employee and the rate increases (the rates are calculated in five-year age increments) as one gets older (notably at age 55 and again at age 60, the rates for optional coverage increase nearly six times the rates for someone age 50).

Basic coverage is paid 2/3 by the employee and 1/3 by the government (except for [[United States Postal Service]] employees who pay zero for their Basic coverage) and is a flat rate for all employees (and retirees under age 65) regardless of age.  Option coverage is paid 100 percent by the employee and the rate increases (the rates are calculated in five-year age increments) as one gets older (notably at age 55 and again at age 60, the rates for optional coverage increase nearly six times the rates for someone age 50).

In order to take coverage into retirement, the employee must have been covered for the five years preceding (or, if less than five years, since the earliest opportunity to enroll); the rule cannot be waived.  Also for continuous coverage, the employee must retire on an immediate annuity (if on a deferred annuity, coverage is suspended -- but not terminated --- from the date of separation until the annuity begins).  At retirement, the employee must decide how much coverage to take into retirement (an employee cannot increase coverage in retirement except as noted below):

In order to take coverage into retirement, the employee must have been covered for the five years preceding (or, if less than five years, since the earliest opportunity to enroll); the rule cannot be waived.<ref>This differs from a similar requirement for continuous coverage of health insurance under the Federal Employees Health Benefit program, which in "exceptional circumstances" allows the five-year rule to be waived.</ref> Also for continuous coverage, the employee must retire on an immediate annuity (if the employee takes a deferred annuity, coverage is suspended -- but not terminated --- from the date of separation until the annuity begins).  At retirement, the employee must decide how much coverage to take into retirement (an employee cannot increase coverage in retirement except as noted below):

*Under Basic, the employee may choose 75% Reduction, 50% Reduction, or No Reduction.  Under 75% Reduction, for retirees under age 65 the coverage remains in the full amount until age 65.  At age 65 (or upon retirement if the employee retires after age 65) coverage will reduce by 2% per month beginning the second full month after an employee's 65th birthday, until reaching 25% of original coverage, and remaining at that level for life.  Under this option premiums must be paid until age 65, after which coverage is free for life.  The 50% Reduction option reduces coverage by 1% per month until reaching 50% of original coverage, while the No Reduction option does not reduce coverage, but both options require additional premiums for as long as those options are chosen; under these options a retiree has only two other choices: reduce to 75% Reduction or discontinue Basic coverage.

*Under Basic, the employee may choose 75% Reduction, 50% Reduction, or No Reduction.  Under 75% Reduction, for retirees under age 65 the coverage remains in the full amount until age 65.  At age 65 (or upon retirement if the employee retires after age 65) coverage will reduce by 2% per month beginning the second full month after an employee's 65th birthday, until reaching 25% of original coverage, and remaining at that level for life.  Under this option premiums must be paid until age 65, after which coverage is free for life.  The 50% Reduction option reduces coverage by 1% per month until reaching 50% of original coverage, while the No Reduction option does not reduce coverage, but both options require additional premiums for as long as those options are chosen; under these options a retiree has only two other choices: reduce to 75% Reduction or discontinue Basic coverage.

*Under Option A, the benefit will reduce at age 65 by $200/month until reaching $2,500.  Premiums must be paid until age 65 after which coverage is free for life.  There is no other alternative except to discontinue Option A coverage.

*Under Option A, the benefit will reduce at age 65 by $200/month until reaching $2,500.  Premiums must be paid until age 65 after which coverage is free for life.  There is no other alternative except to discontinue Option A coverage.