Five-Year Rule Flexibility – When Can It Be Waived?

Flexibility of the Five-Year Rule

The five-year rule for transporting your FEHB into retirement is not necessarily a hard and fast rule.  There are circumstances under which OPM will grant a pre-approved waiver of the FEHB five-year rule to federal employees.  Some of the circumstances are outlined below:

• When a federal employee has been under the FEHB program continuously since the initial date of the agency’s most recent statutory buyout authority or an OPM approved buyout or early retirement authorization and the employee retires during the buyout or OPM-authorized buyout or early out period.
• When an employee receives a buyout or takes an early optional retirement or discontinued service retirement based on an involuntary separation because of a Reduction in Force (RIF) a directed reassignment, a reclassification to a lower grade or when a position is abolished.

OPM will also consider other waivers (in addition to the five-year rule) on an individual or limited basis.

Postal employess can access their FEHB benefits through PostalEase and LiteBlue

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