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Key developments in the world of federal employee benefits: health, pay, and much more.
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TSP Weighs Its Supermodel Retirement Status, and More

The board that runs the Thrift Savings Plan, the federal government’s 401(k)-style retirement program, is anxiously eyeing a new bill that uses the TSP as a model for a national retirement savings plan for millions of American workers.

The legislation, sponsored by Sen. Jeff Merkley, D-Ore., would give workers without access to an employer-sponsored retirement savings account “the ability to save for retirement through their own, personal retirement savings account modeled on the same high-quality retirement savings plan already used by federal workers and members of Congress,” according to a Merkley press release.

A provision in the legislation requires the executive director as well as three members of the Federal Retirement Thrift Investment Board to sit on the board that would oversee Merkley’s American Savings Account. Kim Weaver, FRTIB director of external affairs, said the provision has them nervous because “obviously we take our fiduciary status and responsibilities quite seriously, and to have our executive director have a split duty to both the TSP participants and these other people is concerning.”

Weaver said she wasn’t sure if there would be a conflict of interest, but “I think it’s impossible to say that there wouldn...

The Same Old Benefits Proposals, a Disappointing Pay Raise and More Info on Military Childcare

Federal employees looking for bold, new pay and benefits proposals in President Obama’s fiscal 2017 budget likely came away disappointed. The document unveiled Tuesday sang the praises of the federal workforce, but stuck mainly with benefits requests from past budgets, such as six weeks of paid parental leave. Even the Obama administration appeared disappointed with one of its proposals: a 1.6 percent 2017 pay raise.

That level of raise is not nearly enough to keep pace with the private sector, officials wrote in budget documents. Unless the civilian pay raise is at least 2.1 percent in 2017, the administration noted, the salary bump would be below the Employment Cost Index for eight consecutive years. That would result in a decrease in federal employee pay of about 9 percent compared to the private sector, the “largest relative pay cut over an eight year period since the passage of [the 1990 Federal Employees Pay Comparability Act] by a significant margin,” the budget stated.

New federal employees’ earnings have been hit the hardest, the budget highlighted, as their pay freezes were combined with higher contributions to their pensions. The White House said their compensation has dropped off more than 10...

A COLA Hike for Some, Transgender Coverage for Others

There’s some good news for service members serving in Germany and Turkey. They’ll see a cost of living increase by as much as 100 percent in some cases, starting with their Feb. 15 paycheck, according to Military.com.

Army officials said COLA is going up in Germany because goods and services here cost more than they do in the United States, as revealed by data collected from recent surveys asking military members where they shop and how much they buy on base versus off base,” Military.com reported Monday.

The Defense Travel Management Office has a COLA calculator here.

The Pentagon wants TRICARE to start covering hormone treatment for those who suffer from gender dysphoria, which occurs when individuals don’t identify with the gender they were assigned at birth. The Defense Department published a proposed rule change in the Federal Register Monday that would make treatment available to service members and their dependents:

This rulemaking proposes to remove the categorical exclusion on treatment of gender dysphoria. This proposed change will permit coverage of all non-surgical medically necessary and appropriate care in the treatment of gender dysphoria, consistent with the program requirements applicable for treatment of all mental...

A Second Chance to Change Health Plans, TSP News and More

Not happy with the health plan you chose during open season? You will have a second chance starting next week to modify your benefits.

The Office of Personnel Management is hosting a “limited enrollment period” from Feb. 1 to Feb. 29 for Federal Employees Health Benefits Program participants who decide they want to switch to this year’s new self-plus-one offering. The self-plus-one option in most cases is cheaper than family coverage, though OPM has encouraged enrollees to double check that this is true for their particular plan.

The human resources agency emphasized in an announcement Wednesday that the limited enrollment period is not another open season. It only applies to active federal employees who want to move from a family plan into a self-plus-one plan.

“A record number of FEHB enrollees made enrollment changes during the recent open season, but we know there are still some enrollees in self and family who can benefit from changing their enrollment to self-plus-one,” said John O’Brien, director of healthcare and insurance at OPM.

For those who decide to make the switch, it will take effect on the first day of the first pay period after the change was requested, OPM said...

Teleworking in the Snow, TSP Security Changes and More

Ready for Snowpocalypse 2016?!

Forecasters are predicting a major winter storm to hit the East Coast starting on Friday and lasting through the weekend, potentially dumping between 12 and 20 inches of snow in the immediate Washington metropolitan region. So the main question is whether the federal government will be closed in D.C. on Friday, or whether the Office of Personnel Management – the agency that makes the call in such circumstances – will open for business that day and stagger the departures of federal employees who come into work that day.  

In December, OPM announced no changes for this winter to its policy on closing Washington-area federal agencies during bad weather. But that doesn’t mean the policy is straightforward. OPM is encouraging federal employees and agencies to bone up on their options for working or taking leave during any emergency that hits the D.C. region over the next year.

Federal workers and agencies need to be well-versed on their telework status and policies before an emergency happens, so they know whether they have to work or not when the government’s operating status is disrupted.

The government has several options when determining its operating status. For example, agencies...