FEHB Temporary Continuation of Coverage (TCC) After a Federal Retiree's Death

When a federal retiree dies and the surviving spouse is entitled to a monthly survivor annuity, FEHB coverage transfers automatically — premiums get deducted from the survivor annuity payment, and coverage continues without interruption. But when no survivor annuity is payable, FEHB coverage terminates on the last day of the month of death. That is where Temporary Continuation of Coverage steps in.

How TCC Works

TCC extends FEHB coverage for up to 36 months after the qualifying event. The surviving spouse stays in the same health plan and uses the same network of providers. The difference is cost: TCC enrollees pay 102% of the total premium — both the employee share and the government share, plus a 2% administrative fee.

For context, an active federal employee or retiree with a survivor annuity pays roughly 25-28% of the total FEHB premium. Under TCC, you pay the full 102%. That typically means premiums triple or quadruple compared to what the retiree was paying.

Who Qualifies for TCC

TCC is available to covered family members who lose FEHB coverage because:

• The retiree elected zero survivor annuity at retirement (requiring spousal consent on SF 3107-2 for FERS or SF 2801-2 for CSRS)
• The survivor is not entitled to a monthly annuity for another reason (e.g., marriage lasted less than 9 months and no exception applies)

A former spouse may also qualify for TCC if they were covered under the retiree's FEHB enrollment at the time of divorce or the retiree's death, depending on Spouse Equity Act provisions.

A Self Only enrollment does not cover a surviving spouse or other dependent who could elect TCC after the retiree's death.

The 60-Day Enrollment Window

You must elect TCC within 60 days of the qualifying event — in this case, the retiree's death. OPM mails a TCC election notice as part of the survivor claims process, but the 60-day clock starts on the date coverage ends, not when you receive the notice. Do not wait for the letter to arrive before acting.

File your TCC election with OPM using Form SF 2809 (Health Benefits Election Form). Mark the form as a TCC enrollment and submit it to OPM Retirement Operations.

The 31-Day Extension

Regardless of whether you elect TCC, federal law provides a 31-day extension of FEHB coverage after the qualifying event. During this period, you remain covered under the existing plan with no premium due. This gives you time to:

• Decide whether to elect TCC
• Arrange alternative health coverage (employer plan, ACA marketplace, Medicare)
• Receive medical care without a coverage gap

The 31-day extension also includes a conversion privilege — you can convert to an individual health insurance policy offered by your FEHB plan carrier, without medical underwriting. Conversion policies are typically expensive with limited benefits, so compare them against marketplace plans and Medicare before deciding.

TCC vs. Other Options

TCC is not your only path forward. Compare:

• ACA marketplace plans — may be cheaper than TCC depending on your income, since premium tax credits are available. Open enrollment runs November through January; losing FEHB qualifies you for a Special Enrollment Period.
• Medicare (if age 65+) — Original Medicare Parts A and B plus a Medigap supplement may cost less than TCC. If you delayed Part B while you or your spouse had coverage based on current employment, you may qualify for a Special Enrollment Period. Retiree FEHB coverage alone does not qualify for that period; check with SSA about your enrollment period and any late-enrollment penalty.
• Employer coverage — if you work or your new spouse works, enrolling in that employer's plan during a qualifying life event is usually the cheapest option.

TCC buys you 36 months of familiar coverage while you evaluate alternatives. It is a bridge, not a permanent solution.

The Federal Retiree Death Benefits Guide covers the complete health insurance transition — what happens to FEHB, when TCC applies, PSHB rules for postal survivors, and how Medicare coordination works — alongside every other federal claim you need to file.

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