Pay & Benefits Watch Pay & Benefits WatchPay & Benefits Watch
Key developments in the world of federal employee benefits: health, pay, and much more.

Tapping Feds for Deficit Reduction, Autism Benefits, Roth TSP Contributions and More

The Congressional Budget Office has a few ideas for reducing the deficit. Seventy-nine, actually. In its most recent periodic analysis of policy options and their effect on the federal budget, CBO estimates the savings associated with all manner of things, from tweaking the tax code to cutting grants to state and local government. Few things seem to be off the table in this thought exercise, including benefits to federal employees. CBO’s table of options includes these scenarios with associated cost savings:  

  • Narrow eligibility for veterans’ disability compensation by excluding certain disabilities unrelated to military duties ($20 billion)
  • Restrict VA’s individual unemployability benefits to disabled veterans who are younger than full retirement age for Social Security ($16 billion)
  • Cap increases in basic pay for military service members ($24 billion)
  • Replace some military personnel with civilian employees ($20 billion)
  • Reduce the annual across-the-board adjustment for federal civilian employees’ pay ($54 billion)
  • Reduce the size of the federal workforce through attrition ($49 billion)
  • Introduce minimum out-of-pocket requirements under TRICARE for Life ($28 billion)
  • Modify TRICARE enrollment fees and cost sharing for working-age military retirees ($19 billion to $73 billion)

While CBO weighs the advantages of cutting benefits, the Veterans Affairs Department ...

Expanding Death Benefits, Cutting Pensions, Extra Holiday Time and More

Rep. Stephen F. Lynch, D-Mass., introduced H.R. 5721, the Overseas Security Personnel Fairness Act, to allow the families of overseas federal contractors killed in the line of duty access to full death benefits if the deceased employee is unmarried with no children or other dependents. Problems experienced by the family of former Navy SEAL and CIA security contractor Glen Doherty, who was killed during the September 2012 terrorist attack on the U.S. Consulate in Benghazi, Libya, prompted the legislation, Lynch said. Also killed in that attack were U.S. Ambassador J. Christopher Stevens, former Navy SEAL and CIA contractor Tyrone Woods, and U.S. State Department officer Sean Smith.   

Lynch noted that the Defense Base Act of 1941 requires overseas federal contractors to obtain insurance to make certain that injured workers are entitled to workers’ compensation for employment-related injuries and their survivors are entitled to death benefits in the event of a job-related tragedy. But the law doesn’t extend death benefits, aside from $3,000 in funeral expenses, to the family or designated beneficiary of a federal contractor killed in the line of duty overseas if they are unmarried with no dependents.

While Doherty was unmarried with ...

Health Care Choices, Retirement Savings Safeguards, Faster Holiday Travel and More

Open season officially started this week, giving federal workers an opportunity to rethink their health care and flexible spending account benefits.  For some, the choices may seem daunting. But for at least one group of employees, the options are underwhelming.  The advocacy group Human Rights Campaign on Monday noted that only three Federal Employees Health Benefits Program providers – AETNA, Kaiser Permanente and the Foreign Service Benefit Plan -- will offer transition related coverage for transgender feds.

HRC urged the Office of Personnel Management to go beyond its June notification to FEHBP carriers that such coverage was no longer banned. Providers should be required to offer it, the group said.   

“Transgender federal employees deserve full and equal benefits, and these changes in coverage are simply inadequate,” said David Stacy, government affairs director for HRC. “We are deeply disappointed in not only the scope of coverage, but also the number of providers who will be providing transition related care.”

Those federal employees who are lucky enough to have a range of FEHBP plans that do meet their health care needs might want to consider shopping around. As Retirement Planning columnist Tammy Flanagan noted last week, “open season can be an opportunity to put ...

Hazardous Housing, Thanksgiving Hardship, Health Insurance Changes and More

Home may be where your heart is, but if you happen to be one of the 28,500 troops stationed in South Korea, your home is also quite possibly a mold-ridden, radon-emitting fire hazard one spark away from total annihilation. That’s not exactly how the Defense Department’s deputy inspector general put it in his housing inspection report, but that was the upshot.

The Pentagon IG’s office inspected 12 percent of housing at 13 U.S. military installations in the Republic of Korea earlier this year and found hundreds of code violations, a number of which endangered troops and their families.

In his report to the Army and Air Force, Randolph Stone, deputy inspector general for policy and oversight, catalogued a range of problems, some requiring urgent action because of the safety threat they posed.

In one case, a building wasn’t electrically grounded because the building electrode was disconnected from the main water pipe. “This created an electrocution hazard to anyone in contact with the equipment,” the report said.

Buildings at three installations had fossil fuel burning equipment but no carbon monoxide alarms, which was especially dangerous because “soot build-up on surfaces and around vent flue joints ...

Open Season Workshop, TRICARE Blunder, Telework and More

Oops. The Air Force mistakenly told about 1,000 airmen who voluntarily left the service recently that they’d get six months of extended TRICARE health benefits. Turns out that’s not the case.

The problem occurred when officials failed to correctly update the database of eligible TRICARE enrollees, the Air Force Times reported. Some airmen have apparently been using the health benefits for some time, and are now worried they’ll be billed for benefits they thought were covered.

The Air Force issued a statement Oct. 16 saying it would work directly with the affected airmen to address the problem, but some airman told the newspaper that hasn’t happened yet. The only information one former service member has is “just what has been floating around the Internet,” the Air Force Times reported.

Speaking of health benefits, it’s open season time and at least one lawmaker wants to help you out. On Saturday, Nov. 15, Rep. Gerry Connolly is hosting a workshop to help Washington area feds and retirees “navigate through the many changes in the 2015 Federal Employees Health Benefits plans, dental and vision insurance programs, and flexible spending accounts.”

Says the Virginia Democrat: “Many FEHB plans ...