Key Takeaways

• As of 2025, your existing life insurance and vision coverage remain unaffected by the Postal Service Health Benefits (PSHB) Program transition.

• You can maintain both your Federal Employees’ Group Life Insurance (FEGLI) and FEDVIP vision coverage without needing to enroll in a new plan.

USPS Benefits Shift: What Changes and What Doesn’t

In 2025, the transition from the Federal Employees Health Benefits (FEHB) Program to the Postal Service Health Benefits (PSHB) Program takes full effect for USPS employees and retirees. While this shift has created uncertainty for many, not every benefit is changing. It’s important to separate the health insurance changes from other critical benefits like life insurance and vision care.

Let’s break down what you need to know to feel confident that your existing protections are still in place.

Your Life Insurance Coverage Under FEGLI Is Still Active

The good news is that your Federal Employees’ Group Life Insurance (FEGLI) remains intact. This is because FEGLI is a standalone program administered by the Office of Personnel Management (OPM), separate from your health insurance coverage.

You Don’t Need to Re-Enroll

• Whether you’re an active USPS employee or a retiree, if you already have FEGLI coverage, you don’t need to take any action.

• Your existing coverage continues unless you make a voluntary change, such as reducing coverage or cancelling it entirely.

Payroll Deductions Continue Automatically

• Active employees will see premiums deducted from their USPS paychecks.

• Annuitants will see deductions from their retirement annuity, managed by OPM.

Age-Based Premium Increases Still Apply

As in previous years, your FEGLI premium may increase as you age, particularly for optional coverage.

• For retirees, this is especially noticeable every five years past age 50.

• While Basic coverage may remain at no cost for some retirees, most optional plans will require continued premium payments.

No Impact From the PSHB Program

The PSHB transition in 2025 does not change:

• Your eligibility for FEGLI

• Your existing level of life insurance coverage

• How claims are processed

Vision Coverage Through FEDVIP Also Stays Unchanged

In addition to life insurance, vision benefits through the Federal Employees Dental and Vision Insurance Program (FEDVIP) also remain unaffected in 2025.

Still Administered by OPM

Like FEGLI, FEDVIP is administered independently of PSHB. That means your vision insurance does not roll into the new PSHB framework.

What You Need to Know About FEDVIP in 2025

• If you’re already enrolled in a vision plan, you don’t need to take any action.

• If you want to make changes to your vision coverage, you can do so during the annual Open Season.

• Coverage continues seamlessly for both current employees and retirees.

Premiums and Benefits May Change Slightly

• Premiums can increase slightly each year, depending on the plan you select.

• Benefit levels (like copays and coverage for specific services) may also adjust annually, but these changes are unrelated to the PSHB Program.

Important Enrollment Windows to Watch

While your life insurance and vision coverage aren’t affected by the PSHB transition, you still need to stay on top of enrollment periods if you want to make changes.

FEDVIP Open Season

• Runs from November to December each year

• This is the time to:

  • Enroll if you don’t already have vision coverage

  • Switch to a different plan

  • Add or remove family members

FEGLI Changes Are More Limited

• You can reduce or cancel coverage at any time.

• Increasing coverage generally requires a life event (like marriage) or passing a medical exam during a special enrollment period.

How Retirees Can Manage Their Coverage

If you’re a USPS retiree, managing your FEGLI and FEDVIP plans is still easy in 2025.

Use OPM Services Online or By Mail

• You can view and manage FEGLI and FEDVIP elections through OPM’s Retirement Services website.

• Paper forms are also available for those who prefer mail-based updates.

Keep an Eye on Benefit Statements

• Your annuity statement includes your current deductions for both life and vision coverage.

• Review this regularly to ensure everything is accurate.

Make Changes During Relevant Periods

• For FEDVIP, wait for Open Season.

• For FEGLI, changes are limited and may require qualifying life events or approval.

Special Cases to Be Aware Of

There are a few unique situations worth noting that might affect your benefits:

Former Spouses

• Former spouses are not eligible for coverage under your FEGLI or FEDVIP plans unless a court order specifies otherwise.

Overseas Residents

• If you live abroad, you can still maintain your FEGLI and FEDVIP coverage.

• However, provider access and claim processing may vary, especially for vision care.

medicare-Eligible Annuitants

• If you’re also enrolled in Medicare, it has no effect on your FEGLI or FEDVIP eligibility.

• Medicare coordinates with health insurance under PSHB, not life or vision benefits.

Frequently Asked Questions in 2025

Is there anything I need to do to keep my vision or life insurance?

No. As long as you are already enrolled, your coverage continues without interruption.

Do I need to enroll in PSHB to keep FEGLI or FEDVIP?

No. PSHB is only related to your health insurance. Life and vision insurance remain under existing systems.

Will my premiums go up?

Possibly. Age-based increases still apply to FEGLI. FEDVIP premiums may adjust slightly each year, depending on your chosen plan.

Can I drop one and keep the other?

Yes. FEGLI and FEDVIP are separate programs. You can maintain one without the other.

What happens if I retire in 2025?

If you retire this year, you can continue your existing life and vision coverage into retirement, provided you were enrolled for the required minimum time (typically 5 years).

Why This Matters in a Year of Change

While 2025 marks a significant shift for USPS health coverage, not everything is changing. Knowing that your FEGLI life insurance and FEDVIP vision coverage are safe should bring some peace of mind. These protections remain in place to support you and your family, just as they have in the past.

If you have questions about your benefits or want help evaluating your options, get in touch with a licensed agent listed on this website for professional advice.