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Key developments in the world of federal employee benefits: health, pay, and much more.
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Details on the Locality Pay Increase, Controversial Petition for Christmas Eve Off, and More

Federal employees returned from Thanksgiving to some big pay news. President Obama on Monday released the details of the first locality pay raise since 2010.

Together, the locality pay adjustments will raise the total federal payroll by 0.3 percent next year. That boost comes on top of a 1 percent increase in base pay in 2016.

Employees can click here to see the locality increase in their particular area.  A few things to note: The vast majority of existing localities will see their adjustments increase between 0.2 and 0.4 percentage points. California’s Bay Area, including San Francisco, Oakland and San Jose, will see the largest increase next year, with the locality rate increasing 0.6 percentage points. Employees in other California cities including Los Angeles and San Diego, as well as those in New York City, N.Y., and Washington, D.C., will receive increases between 0.5 and 0.6 percentage points. The adjustment in the capital area will jump 0.56 percentage points to 24.78 percent of an employee’s base salary.

Feds should also be aware that about 108,000 employees who used to be in the general “rest of U.S...

Open Season Help, Bountiful Bonuses and More

Open season for federal employees to make changes to their health insurance is under way, and this year’s promises to be extra busy because there’s a new option on the table: self-plus-one coverage. Employees who want to take advantage of that new offering, or make other changes, have been running into one problem, though, according to a Federal News Radio report. Extra cybersecurity precautions meant to protect workers’ personal information following the massive data breach revealed last spring have slowed down the online portal where many employees go to alter their Federal Employees Health Benefits Program elections and get their open season questions answered.

To address the delays, OPM decided to focus its attention on the Employee Express email help desk, rather than the phone-in line, officials told Federal News Radio. The email help desk can process about three times more queries than the phone line, OPM said. The agency has also added four extra help desk hours daily. That doesn’t necessarily mean you’ll get a quick answer to your questions: the average wait time for a response is 24 to 72 hours, according to the report.

Employee Express is managed by OPM and allows employees...

Open Season, VA Bonuses, Vets’ Benefits, Military Pay, and More

It’s that time of year again: Federal employees and retirees can make changes to their health insurance coverage. Open Season for 2016 officially began on Nov. 9 and runs through Dec. 14.

Feds and retirees can choose or switch plans under the Federal Employees Health Benefits Program, as well as sign up for flexible spending accounts. In 2016, FEHBP enrollees will have a new self-plus-one option. In September of this year, the Office of Personnel Management announced that FEHBP beneficiaries would pay an average of 7.4 percent more toward their health insurance premiums in 2016. Click here for more information on Open Season.

Speaking of health care, a new survey of 800 veterans commissioned by the nonpartisan Vet Voice Foundation found that more than half of the respondents are happy with the performance of their local Veterans Affairs Department hospitals. “Notably, veterans soundly reject that VA hospitals in their area should be run like a for-profit private hospital,” concluded the survey, conducted in October by Democratic polling firm Lake Research Partners and Republican polling group Chesapeake Beach Consulting. “They do believe they need more doctors, and half say it takes too long [to receive care]. But veterans believe...

TRICARE Premium Hike, Gender Pay Gap and More

Military personnel and retirees who carry adult children on their TRICARE health insurance plans will see significant premium hikes next year. The Defense Department announced the cost increase last week.

The TRICARE Young Adult Prime and Standard options, which cover beneficiaries aged 23-26, will increase to $306 per month and $228 per month, respectively.  

“TRICARE is required to set these premiums to cover the full cost of health care received by TYA beneficiaries. For the first time since TYA was created in 2011, TRICARE has sufficient statistically valid cost data to set annual premiums,” the Pentagon announcement said. Officials noted that TRICARE Young Adult coverage is comparable to other platinum-level health care plans.

While the Pentagon is obligated to charge more for those premiums, a bipartisan group of lawmakers wants to protect you from financial scams.

Reps. Matthew Cartwright, D-Pa., Gerald Connolly, D-Va., and 24 other cosponsors introduced the Annuity Safety and Security Under Reasonable Enforcement (ASSURE) Act, which aims to protect federal employees from crooks who try to swindle them out of their retirement benefits.

Richard Thissen, president of the National Active and Retired Federal Employees Association, says the legislation would protect feds from “pension advance” schemes that offer...

TSP Contribution Caps, Locality Pay, No Budget Pain For Feds, And More

The cap on annual individual contributions to employer-sponsored retirement savings plans, including the Thrift Savings Plan, will remain at $18,000 in 2016, according to the Internal Revenue Service.

“In general, the pension plan limitations will not change for 2016 because the increase in the cost-of-living index did not meet the statutory thresholds that trigger their adjustment,” said the IRS in an announcement on the agency’s website.

The limit applies to the combined total of contributions to traditional and Roth accounts. For military service members, the cap includes all traditional and Roth contributions from taxable basic payincentive payspecial pay and bonus pay, but does not apply to traditional contributions made from tax-exempt pay earned in a combat zone.

In addition, catch-up contributions for employees age 50 and older remain at the same level -- $6,000 – next year. So for those employees, their individual contributions cannot exceed $24,000 for the year. Those interested in catch-up contributions need to make a separate election request for that option.

For 2016, the limit for the total amount of all TSP contributions on behalf of an employee -- individual, agency automatic and matching – also is unchanged at $53,000.

Here’s a...