It’s Not 2008, But People Worry About Savings and Investments

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To answer a couple of readers’ questions: No, your Thrift Savings Plan accounts are not insured. Neither by the Federal Deposit Insurance Corporation nor anyone else. Maybe the G Fund. It consists of U.S. Treasury bonds, so they’re backed by the faith and credit of the government.

TSP plan holders surely know the importance of that faith-and-credit fact given that at this moment, Treasury is vacuuming those G-Funds balances into the extraordinary measures, by which the government is paying its bills. Borrowing from debt until it gets authority from Congress is issue new debt.

Therefore, the questions about TSP insurance suggest a certain level of anxiety about savings and investments. There’s also the ongoing question of future Social Security Old Age, Survivors and Disability Insurance funds’ solvency. The latest bank fiasco only compounds the anxiety. In the back of many minds lies the question, can the government stay on this course forever? I only quote the Government Accountability Office, which regularly states that the fiscal course is unsustainable.

The Silicon Valley Bank deal is nowhere near the size of the 2008-2009 financial crisis and its oceanic flood of toxic assets. Yet it’s also wrapped up in politics, moving rules, and bets on gyrating fiscal and monetary policy. At the least, maybe regular people in and out of government will stop citing “silicon valley” as some sort of lofty ideal. Between Theranos and the Silicon Valley Bank story, the Valley seems as much about hucksterism, inbreeding, self-dealing and working the political connections as about innovation. Why, just yesterday, one former Theranos executive reported for duty — to the Terminal Island Federal Correctional Institution at San Pedro, California. How did that lyric go? He “caught the last train for the Coast…” Click HERE to read more.

 

OPM Retirement Backlog Slashed by Over 5% in February

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Fewer incoming retirement claims than in past years and faster processing times helped slash the OPM retirement backlog in February 2023.

The OPM retirement backlog dropped by nearly 5.5% last month, going from 24,858 at the end of January to 23,500 at the end of February 2023.

The Office of Personnel Management also dramatically improved processing times in February, taking only 65 days on average to process retirement claims. In January, the figure was 93 days, so this is an improvement of 30%.

OPM received 9,562 new retirement claims last month, 23% fewer than in January (12,404). It processed 10,920 claims in February, thereby allowing OPM to cut the backlog down to 23,500, a reduction of 1,358 claims over January.

Despite last month’s progress on the OPM retirement backlog, it still remains at a higher level than it has been in past years and is well above OPM’s stated goal of 13,000. In 2020 for instance, the backlog got down to 17,432 in June, and in June 2017 it was 14,530.

February is normally the second busiest month of the year for incoming retirement claims at the Office of Personnel Management, second only to January. However, February 2023 turned out to be less busy than in some past years in terms of incoming retirement claims. The table below shows how February 2023 compares to past years. Click HERE to read more.

 

FACT SHEET: President Biden’s Budget Improves Customer Experience and Service Delivery for the American People

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During his first year in office, President Biden signed an Executive Order directing a whole-of-government effort to design and deliver an equitable, effective, and accountable Government that delivers results for all Americans. Since then, more than 17 Federal agencies, through 35 High Impact Service Providers (HISPs), have taken actions to deliver customer experiences that are more simple, seamless, and secure. The President’s Budget builds on this work by proposing more than $500 million to modernize services, reduce administrative burdens, pilot new online tools and technologies, and improve agency capacity to improve service delivery. By centering the customer’s experience with Federal services, these investments bring value to Americans’ everyday interactions with the Federal government.

Specifically, the President’s Budget:

MODERNIZES SERVICE DELIVERY IN KEY AREAS

  • Improves the airport security experience. The Budget includes $2.7 million for TSA to pilot a Customer Experience Manager model at four airports focused on streamlining passenger screening, easy-to-understand signage, and better collection and review of customer feedback.
  • Modernizes Federal retirement services. The Budget includes $6.6 million for the Office of Personnel Management (OPM) to help reduce processing times and improve customer satisfaction, expand a pilot for online retirement application, and begin to fund additional IT modernization initiatives akin to a case management system. Click HERE to read more.

 

 

March is Women’s History Month

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March is Women’s History Month, a time to recognize the remarkable contributions of women throughout history.
This year’s theme is “Celebrating Women Who Tell Our Stories,” We’re honored to share a few examples of women who continue to shape our future as they live their stories.
Janet Yellen – is not only one of the most heavily cited female research economists, but as chair of the U.S. Federal Reserve, she holds what many consider to be the most powerful economic-policymaking position in the world.
Margaret Thatcher – was Britain’s prime minister for almost 12 years and the first woman ever to hold that position. To many, she was seen as a revolutionary figure who transformed Britain’s stagnant economy and, together with Presidents Reagan and Bush, helped bring about the end of the Cold War.
Elinor Ostrom – held the first of only two Nobel Memorial Prizes in Economic Sciences ever awarded to a woman. Her work on the formal and informal political institutions that can influence an economy enormously influenced the field.
This Women’s History Month, join us in recognizing the women above and the millions who continue to make history while living their stories.

There’s No Turning Back From Some Retirement Choices

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Certain benefits decisions are irrevocable.

Retirement is a very big life decision, involving financial considerations as well as emotional concerns. But deciding whether and when to retire isn’t the only big choice. Once you’ve concluded it’s time to take the plunge, there are other decisions to make. And some are irrevocable. Let’s look at what you can change and what you can’t turn back from.

Federal Employees Health Benefits Coverage

You are eligible to continue FEHB coverage into retirement if you meet these two requirements:

  • You must be entitled to retire on an immediate annuity (including retirements under Federal Employees Retirement System minimum retirement age+10 provisions).
  • You must have been continuously enrolled or covered as a family member in an FEHB plan for the five years of service immediately before the date the annuity starts, or for the full period of service since your first opportunity to enroll (if less than five years).

You can cancel your coverage after you retire, but you can only get it back under limited circumstances. For example, if you’re continuously covered as a family member on your spouse’s FEHB enrollment, you can resume your own enrollment if your coverage under your spouse’s enrollment ends for any reason. But if you’re not covered under a family member’s FEHB, and you cancel your enrollment, that’s a one-way ticket out of the program. Click HERE to find out more.