GSA: Per Diem Rates For Federal Workers Will Increase This Fall

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GSA: Per Diem Rates For Federal Workers Will Increase This Fall

The amount of money federal agencies will reimburse employees for traveling expenses will increase for both lodging and for meals and incidentals beginning in October.

The General Services Administration announced last week that both lodging and meal and incidental per diem rates will increase in fiscal 2025.

Each year, GSA updates the reimbursement rates that it offers federal employees who travel on official business, based on the average daily rate at hotels in each region of the continental United States. Beginning Oct. 1, the agency said it will increase the base lodging rate from $107 to $110 per night. Follow link to read more. https://bit.ly/3WNkcra

How to Decide if Medicare Part D is Right for You

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How to Decide if Medicare Part D is Right for You

Although most federal annuitants might benefit from keeping Part D, there are three instances where you could benefit from opting out.

The Inflation Reduction of Act of 2022 included improvements to Medicare Part D, and some have already been enacted—$35 insulin, no more member cost share in the catastrophic phase of coverage, and limits on premium increases. Next year, all Part D plans must include a $2,000/year maximum out-of-pocket limit per enrollee.

To help federal annuitants take advantage of these improvements, OPM allowed FEHB carriers to offer Part D plans this year if they provide prescription drug coverage that, when combined with the FEHB Program coverage, is equal to or better than what’s available through the FEHB plan coverage alone. Click on link to find out more. https://bit.ly/4dTuQ6I

Your 2025 COLA: Early Projection of 1.75% 

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Your 2025 COLA: Early Projection of 1.75% 

The 2025 COLA payment will be effective in January 2025. Here is an early projection and how it compares to recent years.

Comparing Recent COLAs and Projecting 2025 COLA

The annual cost of living adjustment (COLA) impacts federal retirees in two ways. Most federal employees are now covered by Social Security. Federal employees also receive a defined annuity. The annual COLA calculation impacts both of these programs so it has a significant impact on current or future retirement income. Follow link to find out more. https://bit.ly/3RTdBd9

Survey: Most TSP Participants Lack Outside Savings But Confidence Ticks Up

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Survey: Most TSP Participants Lack Outside Savings But Confidence Ticks Up

Close to 40% of survey participants report having private savings/investments to provide additional retirement income. 

Earlier this year we looked at the results of the Federal Retirement Thrift Investment Board’s 2023 financial wellness survey and some key findings.

The survey was of TSP participants, both employed and retired, and had a relatively anemic 13% overall response rate.  What was interesting was that, among the TSP participants who were still employed, the participation rate climbed the closer the respondents were to retirement.  It ranged from 6% for those under 35 to 20% for those 50 and older.  I guess that the closer we are to retirement, the more it is on our mind. Follow link to read more. Survey: Most TSP Participants Lack Outside Savings But Confidence Ticks Up (fedweek.com)

Source: FRTIB 2023 Financial Wellness Survey  https://www.frtib.gov/pdf/reading-room/SurveysPart/wellness/2023_Financial_Wellness_Survey.pdf

What Went Wrong with the Launch of Thrift Savings Plan’s New Online System?

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What Went Wrong with the Launch of Thrift Savings Plan’s New Online System?

Just over two years ago, the Thrift Savings Plan launched a new online system meant to modernize and improve users’ access to their federal retirement savings. But almost immediately after the system launched, users reported widespread problems accessing their retirement savings and account information. By the end of that first day, TSP’s hotline had received 120,644 calls—with many users waiting hours to get help with accessing their accounts.

Here, at GAO, we received pleas for help from some users, many of whom told us that they were unable to access funds to pay bills or time sensitive information needed to get loans and mortgages.

Congress heard the complaints too and asked that GAO look into what caused the widespread problems and what is being done to prevent future issues. Today’s WatchBlog post looks at our new report on what we found.

Please click HERE to read more from the GAO.