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

First Steps Taken Toward Benefits Open Season

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The annual federal benefits open season will run November 14-December 12 this year, OPM has told agencies, reminding them that they “are responsible for ensuring that your employees are aware of the dates of open season, how to make changes, and which changes they can make.”
OPM’s message in a benefits administration letter is the annual first step in a process that will be followed by an announcement—typically in late September or early October—of general plan coverage terms and premium rates for the upcoming year, plus notice of any additions or dropouts from the FEHB health insurance program. Specific terms of each plan typically then are released a few weeks before the open season begins, and elections are effective with the new year.

During the annual open season, eligible employees not already enrolled in the FEHB may join it—generally, retirees who are not already enrolled may not join the program—and both employees and retirees who are currently enrolled may change plans, levels of coverage within plans that offer more than one, or switch among self-only, self plus one or self and family coverage.

Similar changes are allowed in the FEDVIP dental-vision insurance program, except in that program, retirees may newly enroll.
The open season also applies to the flexible spending account program, in which employees—but not retirees—can elect health care and/or dependent care accounts. In the FSA program a new election is needed each open season; in FEHB or FEDVIP, enrollment continues unless the enrollee makes a change.

National Hispanic Heritage Month

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National Hispanic Heritage Month (Spanish: Mes Nacional de la Herencia Hispana) is a period from September 15 to October 15 in the United States for recognizing the contributions and influence of Hispanic Americans to the history, culture, and achievements of the United States. Click HERE to read more.