resources for figuring out benefits for new fed?

[Anonymous]

I'm going to be starting a new job in a couple of weeks, and I'd like to start figuring out stuff like health insurance sooner rather than later. It seems like the health insurance choices are kind of overwhelming and I don't really understand the retirement system. I'm looking for Fed employee benefits for dummies to at least help me know what to look for on the OPM website. Thanks!

[Anonymous]

Anonymous wrote:I'm going to be starting a new job in a couple of weeks, and I'd like to start figuring out stuff like health insurance sooner rather than later. It seems like the health insurance choices are kind of overwhelming and I don't really understand the retirement system. I'm looking for Fed employee benefits for dummies to at least help me know what to look for on the OPM website. Thanks!

Fed should provide a new employee orientation for the first week of a new job. They should explain to you on everything such as health insurance, life insurance, TSP, FERS Pension, etc. It is overwhelming and difficult to explain to you with this blog. Good Luck!

[Anonymous]

Health insurance - I am a longtime fed and it used to be that almost everyone chose BCBS. It's still pretty common. I have had BCBS standard for years and love it. The premiums are high but the coverage is good and you can go out of network if needed. Lots of people on here like BCBS basic. It saves you some money but has no out of network coverage, which is why I went with standard. I am thinking about looking into the high deductible plans - might be worth a look.

Vision and dental insurance - the standard federal health insurance has minimal coverage for these (covers eye exam and a small amount for dental). If you want more coverage, you can sign up for separate coverage. I usually don't after doing the math on the premiums and my expenses it usually isn't worth it.

Flexible spending accounts - these are accounts where you contribute pre-tax dollars and can use the money to pay for health or dependent care (these are separate accounts). Essentially it allows you to pay a certain amount of expenses with income that never gets taxed, so it saves you on taxes.

Retirement - as a new employee you would be in FERS so if you see anything about CSRS retirement, ignore that (it is an old system that was replaced with FERS in the 1980s). FERS is a pension. Both you and the government contribute $ each paycheck. If you stay with the government until you vest (5 years?? Not sure), then when you retire you will get a pension. The amount of the pension increases for every year of service you have up to a certain point, and is based on the highest salary you maintain for 3 years of federal service.

Life insurance - the important thing to know is that if you waive it, it is hard to select later without going through a life insurance physical. They rarely have open seasons where you can elect it w/o the physical but as a new employee you can sign up w/o a physical.

TSP - it's the government's version of a 401k. There are 5 investment choices. The government matches your contributions up to a % (5%?? Not sure) and you can also contribute more up to the annual limit. There is a standard TSP (invest with pre-tax income, withdrawals are taxed in retirement) and a Roth TSP (invest income that has already been taxed, gains will not be taxed when you withdraw at retirement).

Annual leave - generally you start with 4 hours a pay period and after 3 years of service you move up to 6; after 15 years you move up to 8. I have heard of new feds with significant non-federal job experience negotiating to start with more than 4 hours.

Sick leave - 4 hours per pay period.

There is also long term care insurance; I do not have it and don't remember much about it.

Health insurance, vision and dental, and flexible spending accounts - there is an open season every year in Nov-Dec where you can make changes (flex accounts you have to sign up every year).

Life insurance and long term care - if you do not sign up for these when you first join the government, it is hard to sign up (at least without going through a physical) later. Open seasons are rare.

One warning is that the quality of advice you get on benefits from HR reps can vary a lot. If something is important, it is a good idea for you to check it out yourself. Opm.gov has a lot of information.

HTH!

[Anonymous]

Anonymous wrote:Health insurance - I am a longtime fed and it used to be that almost everyone chose BCBS. It's still pretty common. I have had BCBS standard for years and love it. The premiums are high but the coverage is good and you can go out of network if needed. Lots of people on here like BCBS basic. It saves you some money but has no out of network coverage, which is why I went with standard. I am thinking about looking into the high deductible plans - might be worth a look.

Vision and dental insurance - the standard federal health insurance has minimal coverage for these (covers eye exam and a small amount for dental). If you want more coverage, you can sign up for separate coverage. I usually don't after doing the math on the premiums and my expenses it usually isn't worth it.

Flexible spending accounts - these are accounts where you contribute pre-tax dollars and can use the money to pay for health or dependent care (these are separate accounts). Essentially it allows you to pay a certain amount of expenses with income that never gets taxed, so it saves you on taxes.

Retirement - as a new employee you would be in FERS so if you see anything about CSRS retirement, ignore that (it is an old system that was replaced with FERS in the 1980s). FERS is a pension. Both you and the government contribute $ each paycheck. If you stay with the government until you vest (5 years?? Not sure), then when you retire you will get a pension. The amount of the pension increases for every year of service you have up to a certain point, and is based on the highest salary you maintain for 3 years of federal service.

Life insurance - the important thing to know is that if you waive it, it is hard to select later without going through a life insurance physical. They rarely have open seasons where you can elect it w/o the physical but as a new employee you can sign up w/o a physical.

TSP - it's the government's version of a 401k. There are 5 investment choices. The government matches your contributions up to a % (5%?? Not sure) and you can also contribute more up to the annual limit. There is a standard TSP (invest with pre-tax income, withdrawals are taxed in retirement) and a Roth TSP (invest income that has already been taxed, gains will not be taxed when you withdraw at retirement).

Annual leave - generally you start with 4 hours a pay period and after 3 years of service you move up to 6; after 15 years you move up to 8. I have heard of new feds with significant non-federal job experience negotiating to start with more than 4 hours.

Sick leave - 4 hours per pay period.

There is also long term care insurance; I do not have it and don't remember much about it.

Health insurance, vision and dental, and flexible spending accounts - there is an open season every year in Nov-Dec where you can make changes (flex accounts you have to sign up every year).

Life insurance and long term care - if you do not sign up for these when you first join the government, it is hard to sign up (at least without going through a physical) later. Open seasons are rare.

One warning is that the quality of advice you get on benefits from HR reps can vary a lot. If something is important, it is a good idea for you to check it out yourself. Opm.gov has a lot of information.

HTH!

OP, you should thanks this person. He/She spelled them out very nicely. Well said!