Maximum Telework Designation to End May 15, OPM Says

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OPM has said that the “maximum telework” government-wide operating status designation, put in place more than three years ago in response to the Coronavirus pandemic, will end May 15 since “COVID-19 is not driving decisions regarding how federal agencies work and serve the public as it was at the outset of the pandemic.”

That follows recent issuance of an OMB memo calling on agencies to return more employees to their regular worksites and for more often, although still leaving them with discretion in the name of “organizational health and organizational performance.” The OMB memo came in the wake of criticisms about continued high levels of telework by federal employees even as the threat of the virus ebbed and President Biden had declared the pandemic to be over.

“For the last several years, executive departments and agencies have taken steps for the effective, orderly, and safe increased return to the workplace, and many federal employees have completed reentry. We have maintained the COVID-19 governmentwide operating status until now to preserve maximum flexibility for agencies to learn from work environment innovations and to allow for agencies to adjust their reentry plans in the most appropriate way considering the needs of each agency,” says the OPM memo, on chcoc.gov.

“As a practical matter, we do not expect this operating status change to have significant impact on agency and workforce readiness. Agencies have been executing their reentry plans and policies over the past year . . . Supervisors and employees should continue to follow their internal agency plans and standard operating procedures,” it adds.

OPM characterized the OMB memo as standing for “an expectation to increase meaningful in-person work while still using flexible operational policies. Agencies should continue to strategically use telework and remote work policies in support of their workforce plans moving forward while capitalizing on the benefits of meaningful in-person work,” it says.

Citation: Fedweek, Published: 

 

 

The Demise of the US Dollar

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U.S. Government’s Investment Options Are Good but Could Be Great

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The U.S. Federal Thrift Savings Plan’s Lifecycle Funds’ unique status as part of a huge government entity is a blessing and a curse.

As the workplace retirement savings vehicle for U.S. federal civilian workers and uniformed services members, the Federal Retirement Thrift Savings Plan stands as the largest defined-contribution plan in not only the United States but also the world. Its more than 6.7 million participants include most employees of the U.S. government, such as postal workers, military personnel, agency employees, and members of Congress.

Like most U.S. retirement savings plans, target-date strategies are important and growing components of TSP. They are known as the Lifecycle or L Funds, and more than half of TSP’s 6.7 million participants have directed at least a portion of their assets to these target-date funds; of those, 2.3 million workers invest solely in the L Funds. To offer a measure of independent analysis to L Fund investors and the advisors who serve them, Morningstar reviewed the L Funds through a lens similar to the one used to examine target-date investment strategies available to the general public, examining the funds’ Process, People, Price, Parent, and Performance.

Here, we explore the main advantages and disadvantages of TSP L Funds. Let us know if there are any other TSP-related questions that you’d like us to pursue in the future.

Thrift Savings Plan L Fund Advantages:

  • Rigorous annual testing of asset-allocation glide path.
  • Access to G Fund that provides U.S. government-guaranteed yields with no bond-market risk
  • Underlying funds rely on well-regarded managers via BlackRock and State Street Global Advisors.
  • Access to G Fund that provides U.S.-government-guaranteed yields with no bond market risk.
  • Among the lowest expense ratios available to investors.
  • Unmatched level of transparency via board meetings and various reports available to public.
  • Returns have soundly matched expectations by protecting in down markets.
  • Long-term results consistently ahead of peers. Click HERE to read more.

 

FERS, TSP and Leaving a Federal Job Before Retirement Age

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Not everyone who starts a federal career will end up still being a federal employee at the time they retire. I remember when I started as a federal employee; I thought my job (city letter carrier) was going to be but a stop on my career journey. Twenty-six years later, I retired from Treasury as a federal employee. But that’s not the path all new-hires take; many of them end up leaving the federal government at some time, maybe soon after hiring on, or maybe half-way through their work life. This article is directed to those who think they will leave federal employment at some point prior to retirement and will discuss what happens to their FERS retirement and their Thrift Savings Plan.

If, when you separate from federal service, you have at least five years of civilian service, you will be entitled, at some future date, to a deferred annuity under FERS. It is almost always better to leave your FERS contributions on deposit with OPM than to withdraw them. With as little as five years of service, you will be entitled to the deferred annuity at the age of 62. Click HERE to read more.

Five Things Federal Employees Should Know for Retirement

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Knowing the ins and outs of retirement is challenging, especially for federal government employees.

After years serving the federal government, it’s time for federal employees to reap the many unique rewards a federal retirement plan offers. Retirement preparation is hard for everyone, but navigating federal benefits can add a layer of complexity and red tape that may seem daunting to even the most seasoned financial professional.

I have a heart and passion for serving federal employees. My mother, who is also my best friend and now works for me, is a retired federal employee. I have successfully helped her navigate her federal employee benefits and financial plan to retire at the age of 57. Also, my mentor, whom I meet every month, is a retired deputy commander at the U.S. Defense Logistics Agency (DSCC), and many more of my family members are retired federal employees. In addition, our firm has many clients who are current or retired federal employees. Really, I was forced into becoming a federal employee specialist. Click HERE to find out more.