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Key developments in the world of federal employee benefits: health, pay, and much more.
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Feds Can Donate to More Charities, But Will They?

Federal employees now can donate to thousands more charities as part of the 2014 Combined Federal Campaign. The question is, will they?

This year the Office of Personnel Management has launched the Universal Giving program, which allows feds to donate to more than 24,000 charities nationwide for the annual CFC drive. Before the change, employees could only give to national charities, or those in their specific CFC region. This greatly expands the universe of charities: for instance, federal workers in the Washington area, who could donate to 4,000 groups last year, now have the option of donating to 24,000 organizations in 2014.

“This is important as the American workforce becomes more mobile – [federal employees can donate to] the charities closest to [their] hearts regardless of the region they currently work in,” said OPM Director Katherine Archuleta in a call with reporters on Wednesday. There are 151 CFC regions.

But participation in the CFC has decreased notably over the last four years. Donations dipped 19 percent in 2013 over 2012, marking the fourth consecutive year of declining contributions for the federal government’s annual giving drive. Last year feds gave $209 million, down from $258.3 million in ...

How Obama’s Federal Pay Plan Dashed a Bigger Raise

President Obama made it official just before the start of the Labor Day holiday: He plans to give civilian federal employees and service members a 1 percent pay boost in 2015, barring congressional intervention, of course. But what would the actual raise be if the president and Congress stayed silent?

Based on the latest available data, federal employees would receive a 1.3 percent pay raise under the formula in the law, while service members would be entitled to a 1.8 percent bump. If the president had not informed Congress of his alternative pay plan for feds by the end of August, then the increase mandated by the 1990 Federal Employees Pay Comparability Act would have kicked in. Under FEPCA, the raise is determined by the change in the Employment Cost Index minus 0.5 percent for federal employees; for service members, it’s also based on the ECI but without the 0.5 percent reduction.

Presidents, however, largely have ignored the formula under FEPCA, preferring to offer their own figure, which under the law they can do. The commander-in-chief has the authority to set an alternate pay raise for military personnel and civilian employees, citing a national emergency ...

Military Families Are More Worried Than Ever About the Effects of Budget Cuts

Downsizing within the Defense Department and the long-term impacts of sequestration are creating anxiety about job security among military service members and their families, according to a new survey.

Forty-six percent of middle-class military families (those in pay grades E-6 and above with annual household incomes of at least $50,000) report being “concerned” about their short-term job security, the latest survey from the First Command Financial Behaviors Index found. “That’s the highest level of concern recorded since the question was added to the monthly survey in spring 2013,” stated a news release from First Command Financial Services.

“Almost seven-in-10 survey respondents indicate anxiety regarding sequestration and almost half expect to be extremely or very affected by anticipated cuts to defense spending,” said Scott Spiker, CEO of First Command Financial Services Inc. The Defense Department has planned to downsize in the coming years because of troops withdrawing from Iraq and Afghanistan.

The anxiety is wide-ranging, covering fears over smaller annual pay increases and benefits, such as housing allowances, education and retirement, to relocation concerns related to BRAC (although Congress so far has rejected the Obama administration’s calls for more Base Realignment and Closure rounds).

Military families are cutting ...

Three Charts Showing How White Males Hold the Highest-Paid Federal Jobs

Minority and female workers make up more of the federal workforce than they did 10 years ago, but on average they bring home a smaller paycheck than their white, male colleagues.

According to the latest data from the Equal Employment Opportunity Commission, women in fiscal 2011 made up 43.81 percent of the federal workforce, a slightly smaller portion than the previous year. Overall, the share of Latino, black and Asian workers ticked up slightly since fiscal 2002.

However, female and minority employees were generally in lower-ranking positions than white males. The average General Schedule grade level of employees governmentwide was a GS-10.2 in fiscal 2011. Men averaged a 10.7, a full grade more than the female average of 9.6. Check out the chart below for the full range of GS averages. 

Males also filled the vast majority of senior pay level positons in federal government. While more executives and managers are now female than in fiscal 2002 -- when three out of four senior pay positions were filled by men -- 70 percent are still male. And while about 18 percent of federal employees in fiscal 2011 were black, just 8.1 percent of senior pay positions were ...

How Phased Retirement Affects Your TSP

As feds gear up for Nov. 6 – the date retirement-eligible employees can begin submitting their applications for phased retirement – we will to try to periodically address your questions and inform you about how it will affect your pay and benefits.

In that spirit, the Federal Retirement Thrift Investment Board has weighed in on how phased retirement affects feds’ Thrift Savings Plan, their 401(k)-style defined contribution accounts. Phased retirees can continue to contribute to the TSP, and the same restrictions regarding loans, financial hardship withdrawals and age-based in-service withdrawals apply. Other important TSP-related items for partial retirees to keep in mind, according to the board:

  • You aren’t eligible for post-employment withdrawals.
  • You will not be subject to required minimum distributions or the withdrawal deadline.
  • All contributions to TSP accounts will be calculated on the basic pay received each pay period and “will not consider the annuity payment from OPM.”

More NASA Employees Unionize

Professional support specialists at the space agency overwhelmingly chose union representation with the International Federation of Professional and Technical Engineers this week. The union, which already represents 200 engineers and scientists at NASA in Washington, gained 320 more employees in the vote. Professional support specialists ...