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Electronic Code of Federal Regulations
Title 5: Administrative Personnel
§870.704 Amount of Option A.
(a) The amount of Option A coverage an annuitant or compensationer can continue is $10,000.
(b) An annuitant's or compensationer's Option A coverage reduces by 2 percent of the original amount each month up to a maximum reduction of 75 percent. This reduction starts at the beginning of the 2nd month after the date the insurance would otherwise have stopped or the beginning of the 2nd month after the date of the insured's 65th birthday, whichever is later.
(c) Paragraph (b) of this section does not apply to a judge who retires under one of the provisions listed in §870.703(e)(1). For purposes of this part, such a judge is considered to be an employee after retirement, and Option A insurance continues without interruption or reduction. Exception: If the judge is eligible for compensation and chooses to receive compensation instead of annuity, paragraph (b) of this section applies.
[75 FR 60583, Oct. 1, 2010]