How Not to Lose Your FEHB in Retirement

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Federal employees can lose FEHB coverage in retirement unless they meet certain criteria.
Yep, you heard right. Not everyone can keep FEHB (your federal health insurance) into retirement.

Eligibility to Keep FEHB Into Retirement
There are two big criteria that you have to meet to keep FEHB into retirement. You must:
• Retire with an immediate retirement
• For traditional FERS, this includes retiring with at least:
• 30 years of service at your MRA (minimum retirement age)
• Or 20 years of service at age 60
• Or 5 Years of service at age 62
• Or 10 years of service at your MRA (MRA+10 Retirement)
• You also need to have been covered by FEHB continuously for the 5 years before retirement.

What If Spouse is Also a Federal Employee?
If your spouse is also a federal employee, then it doesn’t matter who is officially carrying the FEHB plan as long as you are covered under FEHB for the 5 years before retirement.

For example, let’s say you and your spouse are feds and you are the one that has a Self+One plan that covers both you and your spouse. As long as your spouse retires with an immediate retirement then they’d be able to keep FEHB into retirement on their own record if they wanted.

But…

But where people get into trouble is when they choose to be on a spouse’s health insurance who is not a federal employee. In this situation you will just want to make sure you jump back on FEHB at least 5 years before retirement.

What if I’m on Tricare? Exception to the 5 Year Rule
Those on Tricare have an exception to the 5 year rule. If you have Tricare then that can fulfill the 5 year requirement as long as you are covered under FEHB on the day you retire.

For example, let’s say you have Tricare for the 5 years before retirement but you also jump into FEHB in the last year of retirement. In this case you’d be eligible to keep FEHB into retirement because your Tricare fulfilled the 5 year rule and you had FEHB at retirement time.

Leaving FEHB for Your Spouse
So now that you’ve successfully retired and taken FEHB with you, the next thing you want to make sure is that your spouse can continue FEHB even after you kick the bucket.

The one big requirement is that you elect a survivor benefit on your pension for your spouse. So no survivor benefit, no FEHB for your spouse, at least after you pass.

The survivor benefit is chosen (or not chosen) on your retirement application.

Here are the 3 survivor benefit options, and as long as you pick one of the first two then you and your spouse are good to go.
1. Full Survivor Benefits: It costs you 10% of your pension and your spouse is left with 50% of your pension if you pass first
2. Partial Survivor Benefits: It costs you 5% of your pension and your spouse is left with 25% of your pension if you pass first
3. No Survivor Benefits: It costs you nothing and your pension goes away when you pass.

Citation: FedSmith: October 27, 2022 10:26 AM

Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government

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The U.S. Securities and Exchange Commission (SEC) and the Federal Retirement Thrift Investment Board present “Your TSP Account – What to Think About When Nearing Retirement or Considering Leaving the Government”: https://www.sec.gov/video/live/tsp-sec-federal-employees-considering-retirement-2022.htm

This program was produced during World Investor Week and is intended for federal employees and members of the uniformed services, and is designed for those who may be considering retiring or leaving federal service.

The program covers the Thrift Savings Plan (TSP) re-design, including enhancements to investing options like the new mutual fund window, distribution options, withdrawals and rollouts. Discussion also covers investment risk and fees, the common red flags of investment fraud, how to check out a financial professional and questions to ask when thinking about moving funds from the TSP.

How to Attend
Click this link: https://www.sec.gov/video/live/tsp-sec-federal-employees-considering-retirement-2022.htm

There is no need to register for the webcast.
For More Information
________________________________________
Address all substantive TSP and investment questions to the sources below:
• For questions about your TSP retirement, please go to the TSP website or call the TSP’s ThriftLine at 877-968-3778 to speak to a TSP expert.
•
• For investment-related questions, go to Investor.gov or call the SEC’s investor assistance line at 800-732-0330 or email Help@SEC.gov.
•
• For webcast questions or other technical problems, email Webmaster@sec.gov.
•
• If you have questions about the program not addressed above, please contact Outreach@SEC.gov.
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• For more information on World Investor Week, see the SEC’s World Investor Week page.
•
Troubleshooting
• See our troubleshooting checklist to resolve video and audio problems.

Big Changes in Your Savings Plan Have Taken Effect

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ecent changes in the Thrift Savings Plan give savers more investment options, more electronic tools and easier access to their accounts.
Here’s what you need to know:

In addition to the traditional TSP funds, there’s a new mutual fund window that offers thousands of mutual fund choices.
But there are costs:

• $55 annual fee
• $95 annual maintenance fee
• $28.75 fee per trade
• Any additional fees and expenses that the individual mutual fund may have.

That adds up to at least $179 a year, if you make just one trade a year. These fees apply just to the new mutual fund window and are being imposed to avoid indirectly increasing costs for TSP participants who don’t use the mutual fund window, according to the Federal Retirement Thrift Investment Board, which administers the plan. The costs for TSP funds have traditionally been lower than most other investment programs.

This Coast Guardsman became a millionaire with his Thrift Savings Plan

If you choose to invest through the mutual fund window, your initial investment must be at least $10,000, and you can’t invest more than 25% of your total account in the mutual fund window.

That means you must have at least $40,000 in your TSP account. That may be at the nine or 10 year mark of service for enlisted members who are contributing 5%; and for officers, maybe at year six, according to JJ Montanaro, a certified financial planner who is relationship director on the Military Affairs team at USAA. Click HERE to read more.

Federal Employees Will Pay 8.7% More Toward Health Care Premiums Next Year

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The Office of Personnel Management said increased use of health care services as the COVID-19 pandemic has waned has led to the sharpest uptick in health insurance premiums in more than a decade.

ederal employees and retirees will spend an average of 8.7% more on their health insurance premiums in 2023, a figure that marks the highest cost increase in more than a decade.

The government’s share of Federal Employees Health Benefits Program premiums will increase by an average of 6.6% bringing the overall increase to 7.2%, according to the OPM. That overall premium increase is the highest the nation’s largest health insurance program has seen since costs increased 9% in 2011.

On average, federal employees enrolled in “self-only” plans will pay an additional $8.11 per bi-weekly pay period, while feds in “self plus one” insurance plans will pay $20.34 more per pay period. Federal workers enrolled in family coverage will pay an average of $20.87 more per pay period in 2023.

For the Federal Employees Dental and Vision Insurance Program, the average premium for dental plans will increase by 0.21%, while the overall average premium for vision coverage will decrease by 0.41%.

The FEHBP’s annual open season, in which federal employees can choose from a variety of national and regional insurance carriers and coverage plans, will run from Nov. 14 through Dec. 12. Follow link to read more. https://bit.ly/3UZXf2A

OPM Launches Chief Diversity Officers Executive Council to Advance Diversity, Equity, Inclusion, and Accessibility Across Federal Agencies

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Government-wide Council Will Work to Build and Model a Federal Workforce that Draws from the Diversity of America
Washington, D.C.

The Chief Diversity Officers Executive Council (CDOEC) kicked off its inaugural interagency meeting to help implement and sustain a national strategy for DEIA across the Federal government. The U.S. Office of Personnel Management (OPM) convened the CDOEC to seek to ensure that the federal government is our country’s model of excellence for DEIA by strengthening the government’s ability to recruit, hire, develop, promote, and retain our nation’s talent.

“The inaugural meeting of the Chief Diversity Officers Executive Council marks a major milestone in this Administration’s work to build and model a federal workforce that draws from the full diversity of the American people,” OPM Director Kiran Ahuja said. “A diverse workforce that holds different experiences and perspectives makes us stronger and more equipped to resolve any issues our communities face. We know government works best when qualified people from every background and walk of life have an equal opportunity to serve our nation.”

Chaired by OPM’s Director, Kiran Ahuja, the CDOEC’s leadership team includes two Vice Chairs– Deputy Director for Management Jason Miller, OMB and Chair Charlotte Burrows, EEOC. The Council will be staffed by Janice Underwood, Director of OPM’s Office of Diversity, Equity, Inclusion and Accessibility. In this capacity she will serve as the government-wide Chief Diversity Officer. The rest of the CDEOC is comprised of CDO’s from the Chief Financial Officers Act agencies and other relevant stakeholders from the Executive Office of the President. The CDOEC will advise agencies and their senior leaders on promising practices in DEIA and promote those practices as important to agency strategic plans, missions, and operations. Follow link to read more. https://bit.ly/3RxQqCc