The Office of Personnel Management has released the rates for the Federal Employee Health Benefits program and, just as expected, the average rate is expected to increase.
There is one surprise, however, and it happens to be an unpleasant one. Initial reports suggested that the Self Plus One option, which is available for the first time in 2016, would have lower rates than the Self Plus Family coverage costed last year. That is not the case.
In 2016, the Federal Employee Health Benefits (FEHB) Program will be undergoing changes to some of its options. We’re here to break down these changes and explain what they actually mean and how they may affect your life.
On Sept 15, 2015, Democrats of the Senate proposed a bill that would give federal workers up to 6 weeks paid leave in order to either give birth to a child or go through the process of adopting a child. Senator Brian Schatz and Senator Barbara Mikulski are heading the bill that is ultimately a response to the memo President Obama released earlier this year that pushed for Congress to give federal workers more paid leave.
This fall, Congress is having a fierce debate on our national budget. Many areas could gain or lose funding, and one of those that could lose money, is the TSP G-Fund.
The G-Fund is a safe and reliable investment option available to federal employees. The principal and interest is guaranteed by the Federal Government. The interest rate is equivalent to a long term bond, allowing investors to get long term rates on a short-term security. The interest rate of these securities resets monthly and is based on the weighted average yield of all outstanding Treasury notes and bonds with 4 or more years to maturity.
Cut benefits, increase taxes, or both?
This is not the ideal 80th birthday present for Social Security but at this point it could be very likely.
For much of its existence, Social Security has collected more than it has paid out, resulting in a large surplus of funds, which is currently valued at $2.8 trillion.
That is enough money to pay out retirement benefits as they are until 2035, but after that, Social Security would have to rely solely on the tax payroll, which is only about 79% of what is scheduled to be paid out. This means that retirement benefits would automatically be cut by at least 21%.