Federal Employees' Group Life Insurance Act of 1980 Statement on Signing H.R. 7666 Into Law.

I am happy to sign into law H.R. 7666, the Federal Employees' Group Life Insurance Act of 1980. This legislation, which was proposed by the administration, will make some greatly needed improvements in the group life insurance program for Federal civilian employees.

The life insurance program for Federal employees has gone largely unchanged in the quarter century it has existed and in recent years has become less and less comparable to the insurance plans of other large employers. This has led many new employees to waive participation in the program, largely because younger employees can obtain better coverage per premium dollar elsewhere.

H.R. 7666, will make a number of changes to solve these problems. First, effective October 1, 1981, it will increase the amount of regular life insurance offered to employees under age 45, with no increase in the premium they pay. To offset this new expense, employees who retire after 1989 will be required to pay premiums until age 65 for the insurance which is currently provided at no cost to retirees. The bill will also permit retiring employees to purchase improved post-age-65 regular insurance coverage at their own expense. Finally, the bill will offer new optional insurance plans allowing employees to purchase additional life insurance at very reasonable group rates and also to purchase insurance to cover members of their families.

These program improvements have been carefully designed to provide greater protection for employees at a minimum cost to the Government. I commend the Congress, and Congresswoman Gladys Spellman in particular, for enacting this legislation, which is both fiscally responsible and responsive to the needs of Federal employees.

NOTE.: As enacted, H.R. 7666 is Public Law 96-427, approved October 10.