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March 28, 2024

Federal Employee Retirement and Benefits News

Category: Articles

Articles

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NEWSLETTER WEEKLY – IS THE COUNTRY SAFE FOR RETIREES

RETIREESThe Pew Research Center released a survey today (December 10, 2014) detailing that gun-rights supporters are the highest in two decades.  When the shooting happened in Newton the numbers were not nearly as high and this event seemed to have marked a dramatic turnaround in the nation.  Mind you this was not the first school shooting that splashed across television sets from newsroom throughout America.  We had Columbine and Virginia Tech.  As I thought of school shootings – public and private school – colleges and universities – I decided to do a bit of research. Not what I expected.  The data was overwhelming and some of the shootings I had no knowledge of.  I suppose the news giants decide what is really news and if that news should remain within the confines of a community or give way to the entire country.

My question is looking at the dynamic of increased support of gun rights  – Is the country more violent now thus escalating fear or have we simply become a  gun-totting society with our fingers on the trigger?  Did we become more gun-rights conscious after the shooting of the those innocent babies in Newtown by another child (young person) who needed help he didn’t get?  I cannot answer a definitive yes or no to either question.  The killing of young innocent children is not new in our history – in our country.  My research informed me that the killing of children in schools dates back to July 26, 1764 – the Pontiac Rebellion School massacre – now Greencastle, Pennsylvania, where it is reported that three men entered the school killing the school master and 10 children.  The number of children actually killed seems to vary but not less than 10.

So, has the country gotten more violent or are we more aware because of the advances in communication.  Our newsletter weekly asked the question – if the country is safe for retirees.  If the country is not safe for children who have no political clout and are not in and of themselves a lobbying group, then the country would surely not be safe for any of the rest of us, including retirees.  Do guns make us safer and is that why so many of us are supporting gun-rights.  Yet, does supporting gun-rights really mean that you advocate buying and owning a gun?  I don’t know the answer to those questions.  I do know that guns do not create a safer nation, a safer community, a safer environment.  I also know that if someone is angry and a gun or other weapon is available, the anger might propel him or her to grab a gun and shoot as opposed to resolving the conflict in a non-lethal manner.

Unfortunately, having enough money to outlast you is apparently not the only issue retirees will have to worry about  in our new world filled with too much violence.  There used to be places in America we thought was off limits – schools – we thought schools were safe for our children.  There was also a time when we thought older people were also off-limits.   Research also showed that there has not been a single decade where violence and killing did not take place in our nation’s schools.  When violence takes place in our schools, it means it takes place in our country.  Retirees are challenged by not living in a world that is necessarily safe for them, worsened by the frailness of old age.  Is the country safe for retirees?  What is your answer to that tough question?

P. S.  Always Remember to Share What You Know

Dianna Tafazoli

hat there are more Americans who support gun ownership than ever before.

The Gift of Giving

The Generosity of Federal Employees 

Federal EmployeesOften we think of charitable giving this time of year.  We often think about which charity to make a donation to.  Every charity is not a charity.  The message is that every charity is not reputable and monies are ill-gained not to the benefit of those crooks exploit to fill their pockets.  There are some charities we all know – the red buckets outside of grocery stores and in some malls are familiar fixtures.  There are some other very reputable charities doing good things to better humanity.

If you are in doubt as to the validity of a charity, do some research.  Most of us have access to the internet or other sources of information and it just makes sense to know where your money is going.  It is also the time of year where we give thanks to the blessings we have and our ability to take care of our families and even have something extra left over.  That is certainly not the case for many families and children during this holiday season.

If you can give to a reputable charity, then do so.  Many charities provide food, cloth and shelter to families who would otherwise go without.  One of my favorite charities this time of year is – Toys for Tots.  It is hard for me to imagine a child waking up on Christmas morning without something under the tree to unwrap.  Beautiful and joyful memories come to mind when I think of Christmas morning.  The smells in our house were indescribable, absolutely delicious.  The decorations had been up for weeks, candles in the windows, a wreath on the door and oranges and apples everywhere.

Imagine – all of this stuff happened before the unwrapping of gifts and then you played all day with the wonderful, magical things Santa had brought all because you had been good.  I remember finding it very hard to sleep on Christmas Eve and Mama would tell me if I didn’t close my eyes and go to sleep, Santa was not going to stop by our house.  I guess I went to sleep because the next thing I would hear was my mother’s voice saying – wake up to see what Santa left for you.

Every child deserves to live a life so they can recall wonderful memories and share the stories of Christmas that can only be seen from a child’s eyes.  In giving to your favorite charity, if it is a reputable charity, your donations are tax deductible.  Remember as the Christmas Season draws near, before we know it will be tax season.  Giving is a good feeling from the heart and you get something back in more ways than one.

P. S.  Always Remember to Share What You Know.

Related Articles

Santa’s $100 Dollar Bill Scam

Deck the Halls With Safety and Joy

Mark Your Holiday Calendar Annually

The Holiday Season is Not Always Jolly

Utility Companies Are Spreading Cheer

Federal Employees Should Protect Themselves This Holiday Season

Federal EmployeesUtility companies are warning seniors and others about the increase in scammers this time of the year.  Some of our previous posts have addressed this lurking evil, but to have the utility companies spread cheer by asking customers to be wary of scammers is a very good thing amidst all of the turmoil in our country.

Dominion Power Company sent out emails to its customers explaining that they do not contact customers by phone, email, text or in person asking for confidential information and/or threatening disconnection in exchange for immediate payment in cash, pre-paid cards, or through PayPal.

Dominion even offered ways to protect seniors and other customers against scams:

If you are approached by someone in person claiming to be from Dominion, or the power company, always ask for a company-issued picture I.D.  Better still, don’t even answer your door.  Call the power company and ask if a representative has been sent out to your home.  If not, a follow-up call should also be made to the police.

If someone calls you pretending to be a power company representative and you feel pressured to provide payment or personal information, capture the phone number and hang up.

You can also verify your account information including bill amount, by signing in to your online account.  Dominion also warns that scams are not limited to impersonating a utility company.  Dominion is the power company in the area where I live, but this is a warning no matter who your power company happens to be.

It is wise to take extra precaution during the holiday season and not a bad idea to do it all year.

P. S.  Always Remember to Share What You Know

Recommended Articles

Will The VA Pay for the Care of a Veteran’s Spouse?

LiteBlue; Online Access to More Than Just Your USPS Earnings Statement

Unused Sick Leave, What You Need To Know,   by Marico Tippett

Is There an Asset Ceiling for Veteran Benefits?

 

NEWSLETTER WEEKLY – CHANGES IN WASHINGTON

GovernmentThere are many changes taking place in the nation’s capital.  One very significant change is the exit of Defense Secretary, Chuck Hagel.  Hagel announced his resignation from DOD, many said the resignation was forced.  The President is expected to nominate Ashton B. Carter as the next Secretary of Defense.  Carter served as the Pentagon’s second-in-command from 2011 to 2013.    Carter also served as Deputy Secretary of Defense under Secretaries Hagel and Panetta.

Prior to Carter’s service as Deputy Secretary, he was the under secretary of defense acquisition, technology and logistics.  Carter was known as the Pentagon’s chief arms purchaser.  Carter has since left the Pentagon and is a member of the President’s Management Council on Labor Relations.  Carter has a long history with DOD.  During the Clinton administration, he served as Assistant Secretary of Defense for International Security Policy.

Carter also has an academic leaning.  He was a member of the faculty at the Harvard University Kennedy School of Government.  Mr. Carter will certainly not have a learning curve it seems.  It appears he knows his way around the massive structure.  As to whether he will infuse new blood into the Pentagon remains to be seen.

Mr. Carter ‘s career progression would speak very positively to his preparation to lead DOD.  Taking a break from DOD is probably the most impressive of all his credentials.  Often standing outside of the house for a moment can bring forth fresh ideas as to how much the house is in need of repair both inside and out.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

What To Do With My Accumulated Wealth

retiree

This is the story of a Federal retiree

This is the story of a Federal retiree who also served in the military and had a pretty lucky hand at playing the stock market. In other words, he has amassed a fairly sizable fortune.  He has one surviving heir, his son.  Lately he has begun to worry about what to do with his wealth since he is approaching 90.  He is in good health and I don’t think he will be making that final journey anytime soon.  He comes from a family of very long livers – 100 plus.

I listen to him more than I shell out advice.  I really believe that it is nonsense to wait until death to share your resources with the people you intend to have it.  Chances are many of the people could use a hand-up right now to make life a little easier.  He is smart enough to make certain he has enough to see him through.  After all, this is a gentleman who came of age during the Depression and some of the most cruel conditions surviving both in the military and the federal service.  Yet, he became a very wealthy man and from what it seems he will never have to worry about his financial well-being.

He has been gathering the names of all of his surviving nieces and nephews around the country so that he can name them in his will and not have to leave everything to his son; particularly, since they don’t communicate that much.  I believe all-in-all that the son is a fairly decent human being.  The only thing I know that the son has done is not visiting his father enough.  That might be because he and the father don’t see eye to eye on a number of political and social issues.  Well that might be true for the lot of us.

If I felt so compelled to advise him this is what I would say.  Sit down with your attorney and your financial advisor and propose drawing up a document to give your only child – your son what you intend for him to have now.  Discuss all of the tax consequences and all the other nuances – and give him the second gift of a lifestyle.  His first gift was truly his parents – he had great parents and has a great father.  His mother passed on some years ago and she knew her son would be just fine.  In other words, the son received the kind of love growing up that will always sustain him even if he does not see eye-to-eye with his father on some things.  I would also give the nieces and nephews what I intended for them to have.  They have families and children in college or headed off to college.  A few dead presidents here and there could lighten the load.

If he intends to give some to charities, then he can hold off on that.  Instead of worrying about what to do with the accumulated wealth into old age, take care of that now so that you can see your loved ones enjoying the fruits of your labor.  I would get such enjoyment out of watching the smiles and the surprises on faces when they learned they could pay off a student loan debt, cover a grandchild’s tuition, help to pay down a mortgage and just a host of other things that can be a heavy burden on families.

We do things the way we have gotten used to doing them.  Nobody said we couldn’t do some things differently.  They might make more sense and they might help a lot more people sooner.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

Recommended Articles and Resources

Understanding The Thrift Savings Plan, By Todd Carmack

TSP-Withdrawal.com and TSP 70 information 

Social Security for FERS Employees by Todd Carmack

Should You Purchase an Annuity?

AnnuityA question came across my desk – A FERS employee asked me whether or not they should buy an annuity as they reach their FERS retirement age?  Anytime I get a question like that other than saying find a Registered Investment Advisor (RIA), is why would you purchase the annuity and for what purpose.  Many of us do too many things without knowing the WHY.  We do know that working everyday and preparing for today and not enough.  It is necessary to work today and plan for today and tomorrow, often making sacrifices today so that there will be a bright future tomorrow.

In a country as wealthy as the United States, albeit disproportionately distributed, too many people are retiring without being ready.  They are neither emotionally nor financially ready to retire.  Whose fault is it that they are not ready?  Well to position one’s self for such an argument is useless.  The entire populace would be better served if we determined why we are not ready to retire and look for ways to remedy the deficit and fix it.  A financially and emotionally healthy retirement population is an impetus for growth in the national economy.

An annuity by its very name indicates that there will be the presence of some dollar amount for a life time.  Every retiree desires guaranteed lifetime income.  Many of the financial instruments on the market are somewhat difficult to understand and require the services and expertise of trained individuals familiar with those products.

I believe that anything worth your money is worth you evaluating why and what you need it for.  What kind of benefit do you expect to derive from you purchase or investment?  First things first.  Should you purchase an annuity?  You should read as much as possible about annuities so when you decide for or against the purchase you will have enough intelligence about the subject to feel comfortable with the decision you make.  Never put yourself in the position of having someone else do your thinking for you as long as you can do it for yourself.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

 

Recommended Articles

How to Choose a Financial Professional to Handle Your Affairs

Unused Sick Leave, What You Need to Know

Understanding the Thrift Savings Plan

DO YOU HAVE THE RIGHT MEDICARE PLAN

MEDICAREOne of the many questions retirees and seniors are being asked this holiday is – Do You Have the Right Medicare Plan?  Frankly that is a question that can only be answered by the participant.  There are a number of things each of us should outline in terms of need.  What are my immediate or potentially long-term health issues and what plan seems to answer those needs best is how you decide on the right Medicare plan.

What fits your spouse or your neighbor may not necessarily be right for you.  Talk to your health care provider who should be a partner in taking care of your health care needs.  Your health care partner and you should have conversations about preventive health, prescription drugs, and many other matters that impact your health.

Therefore, it is not just a matter of choosing a Medicare plan, but more or less – what kind of plan best fits your needs not only now but your future needs.  Being a Federal retiree you are very privileged that you don’t have to look for a Medicare supplement.  Your FEHB is a very important part of taking care of your health.  Being able to transport your Federal health insurance into retirement is one of the best gifts you will ever receive.  You get to keep your coverage and pay the same low cost premiums as you did when you were an active employee.

Along with your  FEHB and Medicare, you should be able to assess your needs against the various plans offered via Medicare to select a plan that is right for you.  Together Medicare and your FEHB will be enough coverage to outlast you.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

When Is Advice Too Much Advice?

MedicareThe Holiday Season brings about too much of most everything for many of us.  Too much food to eat, too many gifts to buy and just simply too many things to do.  In the arena of too much is also too much advice.  Senior citizens are beginning to get too many phone calls to keep up.  There is a caller on the other end talking about updating your medical coverage.  Are you satisfied with your Medicare coverage or do you want to try something else?   What about life insurance, do you have enough to bury yourself?  Is your money invested in the right place and what about purchasing an annuity so that you will have money for the rest of your life?

Imagine, you are a senior citizen living alone with no close relatives nearby you can count on and you are hit with all of these questions by someone on the other end of your phone who sounds legitimate.  They start pouring all of this information in your ear at at rate you can barely keep up with.  The next thing you know they are saying how much they can do for you with just a little money down and that you have nothing to lose, but everything to gain.  They ask for your credit card number and the scam begins.

First, seniors are targets for scammers.  You cannot emphasize this dynamic enough during the Holiday season.  If someone calls you on the phone, most of us have caller ID, if you don’t recognize the number or the name let it ring.  After so many rings, they will eventually hang up because they are about production, the numbers moving on to the next unsuspecting victim.  More importantly, if someone knocks on your door you are neither expecting and have not invited to your home, don’t respond to the knock or the door bell.  They should not know whether you are home or not.  If it is really someone who knows you and wants to visit with you, they will call you on the phone before coming to your door.  If they do come and you don’t respond to the knock, they will even call out your name.

Not answering your door and phone is within your control.  There are many things we cannot control – like the frigid weather- that seems to be coming our way, but we can control who we communicate with.  No matter how nice they seem and how sweet and sincere they sound on the phone, let them take their charms somewhere else.  You can never be safe enough as a senior or a Federal retiree.  Scammers think Federal retirees have some healthy purse strings and they want to become their best friends.

Stay safe for the Holiday and don’t be caught off-guard by people (men and women) who have built their careers on taking advantage of other people.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

Additional Articles by Dianna Tafazoli

Katherine Archuleta Is Working Against the Clock

It’s Another Shake Up at GSA

I’M GETTING MARRIED

 Federal employeeA nice email came across my desk from a young woman who is a Federal employee and is getting married next June.  She is so excited and we are excited for her.  She told me that she was thinking about dropping her FEHB and FEGLI because her husband has coverage on his job with the Railroad.  She stated that her husband-to-be had great coverage and they certainly did not need two plans for health coverage.

The young woman is right, they don’t need two health coverage plans.  However, the right answer to her question requires a deeper dive.  The Railroad has great coverage but that coverage only extends up to eligibility for Medicare.  We all know by now that Medicare only covers about 80% of the cost of medical care and by some mechanism the additional 20% of your medical costs need to be covered.  You can purchase a Medigap plan to fill the gap, but those plans can also be expensive.  The decision that is eventually made in the young couple’s lives is ultimately theirs and theirs alone.  But since she did write to me, I think it gives me a little leverage to give her some advice.

We live in a world today where the husband is not the gatherer and the wife is not the nest-builder.  Husband and wife play the role of mutually responsible gatherer and nest-builder.  That being said, if the wife has the better plan then there is where the health care protection should be and vice-a-versa.  FEHB remains with the Federal worker for the rest of their lives all things being equal; thus, acts as the secondary coverage to Medicare upon reaching Medicare eligibility once retired.  As long as you are an actively employed Federal worker, FEHB would be the primary in most cases.

That being said, both individuals could keep their own insurance each carrying the other on the policy.  Insurance is never going to pay 200 percent, but the two insurances would certainly provide for any gaps in medical responsibility that might be left to the couple.  On the other hand, it is important to remember that FEHB will act as a Medigap filler for Medicare during retirement.  The Railroad no longer covers its employees when they become eligible for Medicare.  Things to consider before allowing upcoming nuptials to cloud good decision making that will keep you blissful for many years to come.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

ARE YOU CONNECTED

Many elderly retirees continue to live alone because they are active and physically fit.  However, it is well known that often as we advance in age some of our mental and physical faculties begin to shift or lose their acuity.  Therefore, staying connected  is a good way to make sure that you are safe just in case you need assistance.

There are many electronic devices that are available today like medic-alert and others that can be of assistance to elderly people choosing to maintain their independence by living alone.  Just as a back-up plan, seniors should provide at least two people they trust with contact information.  Those two people should also have contact information for each other.

I have a wonderful friend that I worked with for years who is now in his late 80s.  We talk periodically about once or twice a month during what we call our appointments to catch up.  We talk about politics, life, the weather and a whole bunch of other very interesting topics.  He is Veteran and came of age during the Depression.  He is my very own personal walk through history.  We are both history buffs and the conversations are both soothing and rewarding.

A few months past, I could not reach my friend by phone.  We live in different states now and I became quite worried.  I realized although I knew his only child and her husband I did not have any contact information for them.  After a period of time I considered unreasonable for contacting him, I called the non-emergency number of the Police Department in the state where he lives.  They asked some questions and I gave what I suppose were suitable answers and a police car was dispatched to his home.  Very shortly thereafter, I received a phone call from my friend.

His land line in his home had been out of order and he didn’t know it because he doesn’t use the phone that regularly anymore.  He called me on his cell phone of which I didn’t know he even had a cell phone.  He made sure that I had all of his numbers and his daughter’s contact information if I were ever again unable to reach him.  She had not called her father, and like me, did not know that his phone was out-of-order.  Luckily, this time was only that his phone was out-of-order and he was just fine.  It is much better to put precautionary measures in place so that we can be safe and not sorry.  Are You Connected?

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

HAVE YOU SET YOUR TIMER TO REVIEW e-OPF

Federal employeesFederal employees have a number of things to mark on their calendar.  Many Federal employees will be retiring by this year’s end or early next year.  For these employees, reviewing of the Official Personnel Folder should have been done.  The folder which is now electronic in most agencies is a record of an employee work history.  The folder shows health care coverage and changes in coverage, life insurance options, service computation dates, positions, titles, series and grades held by the employee and many other demographics.

There are times when the recorded information may have errors or mistakes.  Marking a time on your calendar each year to review your folder, will prevent what could be costly mistakes in the future.  I think it would be safe to say that a huge number of Federal employees never review their personnel folders and don’t really know what is in them.  There are guidelines that govern the filings in personnel folders.  There are permanent and non-permanent items found in the folder.  There is a purpose for filings on the right-hand size of the folder and a purpose for filings on the left-hand side of the folder.

Personnel folders need to be purged for non-permanent materials.  One thing employees should be aware of is infractions and how long certain infractions can remain in your folder.  If you don’t know, then you can say what is appropriate and what is not.  Many employees may not have infractions, but need to be astutely aware of leave records and proper accrual rates, salary increases and when they occurred , in addition  to your benefits profile.

There are many things that should be marked on your calendar that are important to staying on contract during your active employment years and during retirement.  In the next article we will list some of the items that should be marked on your calendar annually.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

The Holiday Season is Not Always Jolly

Federal EmployeesFor Federal Employees, the holiday season brings about much joy and anticipation.  It also brings about many concerns for senior citizens and federal retirees.  The holiday season is also a time when unscrupulous individuals look for ways to scam and take advantage of unsuspecting citizens.  One of the most recent scams involved telephone calls, supposedly, from the Internal Revenue Service (IRS).  Individuals would receive phone calls telling them about outstanding taxes and the consequences they would face if the taxes were not paid right away.

Many of the individuals were asked to give personal information over the phone such as social security numbers, bank information and many other pieces of identification the IRS would never ask for.  Seniors and retirees are always targets because scam artists believe Federal employees have money and they want some of it.  Be ware is the best mantra to have during the holidays and throughout the year, because as soon as one scam is detected another one is well on the way.

The IRS does not notify citizens of tax issues by calling them and threatening them over the phone.  The IRS will usually send written correspondence outlining what the tax issue is allowing you to contact the service to discuss the issue.  The IRS will never call you on the phone and threaten you with jail or other non-professional means of communication.  There is no guarantee that all IRS representatives are going to be nice, but if they act in a threatening manner there are certainly mechanisms of reporting that behavior.  Often IRS calls are recorded for quality assurance.

The IRS in its previous history had a reputation of bullying citizens and acting in a very unprofessional manner.  Citizens complained and watchdog groups lobbied Congress about the Service’s tactics.  Since then the IRS has adopted a more customer friendly attitude.  According to customers, the Service could still stand some more training around appropriate customer service protocol, but they have gotten better.  The surprising thing is that the IRS continues to be voted as one of the best places in Government to work.

However, the most important thing to remember this time of the year is that jolly is not the only thing calling at your door, so are the scammers.

P. S.  Always Remember to Share What You Know.

Related Articles

Santa’s $100 Dollar Bill Scam

Deck the Halls With Safety and Joy

Mark Your Holiday Calendar Annually

The Holiday Season is Not Always Jolly

Important Year-End TSP Dates

WHY SOCIAL SECURITY ACTUAL DIFFER FROM ESTIMATES

SOCIAL SECURITYThe actual amount benefits you will receive as a result of applying for benefits may differ from any and all estimates received because:

  • Your earnings may increase or decrease in the future.
  • After your benefits have begun, they will be adjusted for cost-of-living increases.
  • Estimated benefits are based on current law.  Laws governing benefits amounts may change.
  • The amount you receive in benefits may be affected by military service, railroad employment or pensions earned from work where you did not pay Social Security taxes.

If you receive a pension from being employed and did not pay Social Security taxes and you qualify for Social Security from your own employment or are eligible for a disability benefit, your Social Security may be reduced by the Windfall Elimination Provision, but not eliminated.  The amount of the reduction is dependent upon earnings and the number of years in employment where you paid Social Security taxes, the year you become 62 years of age or become disabled.  For the 2014 year, the maximum amount of the reduction is $408.  The Social Security Administration can direct you in estimating the Windfall Elimination Provision’s effect on your Social Security benefit.

P. S.  Always Remember to Share What You Know.

Related Articles

HOW ARE SOCIAL SECURITY BENEFITS ESTIMATED

SOCIAL SECURITYSocial Security benefits are estimated based on the number of years you have worked over the life of your employment.  The Social Security Administration will determine first whether you have enough credits to qualify for the benefit.  Most individuals needs 40 credits to qualify for benefits.  It usually takes about 10  years of work to gain the 40 credits.  Four credits are earned each year.  Currently, for 2014, one credit is earned for every $1200 of wages earned or self-employment.

If you are qualifying for benefits based on disability, younger people need far fewer credits to qualify.  Individuals’ average earnings are used over their work lifetime to estimate the benefit.  The SSA also assumes that an individual will continue to work and will earn about the same salary or somewhere in that ball park as they get closer to retirement age.

Estimates are much more feasible as one gets closer and closer to retirement age because there are fewer fluctuations in the circumstances surrounding the individual.  Most of us are not going to get any huge increases in salary as we get closer to retirement and more than likely will not change the nature of our employment. Further, the laws governing employment practices and earnings will probably not change as you get older and closer to retirement.

If there are changes in the law the period of coverage would probably not impact someone very close to retirement age.  You can also use the Social Security Administration’s Retirement Estimator to get personalized benefits information.  Actual benefits information can only be given when an individual applies for benefits.  The actual benefits amount might differ from previous estimates.  If there is a noted difference between what you were given as an estimate and what you will actually receive, don’t be too concerned.  Always ask questions if you feel the need or you are uncomfortable with what you have been given.  The actual calculation is generally always different from estimates given.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

NEWSLETTER WEEKLY – IT’S THAT TIME OF THE YEAR

social securityThis is the time of year just before we enter into a new year, that every American not yet of retirement age or who is not already receiving Social Security, should check their Social Security Statements for accuracy and completion.  The Social Security Administration (SSA) in compliance with the Paper Reduction Act no longer sends out hard copies of Social Security statements.  However, you can view and print out your statement on line simply by creating an account with the Social Security Administration.

The Social Security Administration has a recording of your earnings over the entire history of your work life – usually using a standard of 45 years.  It does not mean that you actually have to work for 45 years.  When the Social Security Administration came into being, working 45 years was not so far fetched.  Although your earnings are reported via your employment, mistakes and omissions can be made.  It is for that reason that it is important to check your SSA statements annually.

Checking your statements for accuracy is not the only reason you want to be on top of things, what you will receive as Social Security earnings  is also a part of your retirement planning to work towards building a secure retirement future.  Granting Social Security is more than a retirement program but one that might assist you and your family members if you become disabled or die.   Although Social Security represents the largest source of income for many retirees, it is a good bet that Social Security alone will not be enough for you to live comfortably in retirement.

When checking your annual statements, it is an opportunity for you to look at gaps in what you will need to pay your expenses and have some extra to live on when you retire.  Let the annual statement be a reminder of how much you need to save and invest in order to have options in your retirement future. Your statement will give you an estimate of what you will receive at age 62, your full full retirement age and at age 70.  Your statement will also estimate how much you will receive if you became disabled right now.

There are a number of questions that can be answered by carefully reviewing your annual statement.  First, if you find any errors or discrepancies on your statement you should contact the Social Security Administration immediately.   The SSA publishes a number of bulletins that will assist you in estimating you benefits and applying for benefits on line.

If you have general questions about your benefits, don’t hesitate to contact SSA and speak to a representative who will answer any questions you might have about your benefits.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

I HAVE QUESTIONS ABOUT FEHB

  1. FEHBDo pre-existing condition exclusions apply?  No, they do not.  Persons enrolling in the FEHB Program are not subject to pre-existing condition exclusions.
  2. Is TCC (Temporary Continuation of Coverage) similar to COBRA?  Yes it is.  COBRA is offered to individuals in the private sector.  However, like COBRA,  TCC may offer certain individuals and their family coverage to temporarily continue their FEHB after regular coverage ends.  TCC covers Federal employees and their families who lose their FEHB because of a qualifying event such as loss of employment, except for gross misconduct.
  3. Can my FEHB cover my adult child?  If the child is under 26 years of age.  The child may be 26 years old and older if the child meets the criteria for disability.
  4. What is the criteria for disability?   The child must be incapable of self-support because of a mental or physical disability that existed before age 26.
  5. How many days do new employees have to enroll?  Newly hired employees have 60 days from their entry on duty date to sign up for an FEHB plan.

If you have questions about your health coverage be sure to contact your human resources benefits office.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

 

 

WHO IS ELIGIBLE TO PARTICIPATE IN FEHB

FEHBTitle 5 of the U. S. Code, Chapter 89 governs the Federal Employees Health Benefits Program (FEHBP).  The Office of Personnel Management (OPM) formerly, the Civil Service Commission, has statutory oversight for the Program including the authority to contract with qualified carriers.

The Federal government is the largest employer in the United States making the FEHB Program the largest employer-sponsored health insurance program in the country.  The Program covers approximately 8.2 million active employees, retirees and their families constituting roughly 90 percent of those eligible to enroll.

Those individuals eligible to enroll in the FEHB Program include federal employees, the President of the United States, annuitants (retired employees having met all eligibility criteria) and eligible family members.  However, active Members of Congress and certain of their congressional staff are not eligible for benefits under the FEHB Program as a condition of their employment.  They may be eligible to enroll in FEHB in retirement but not during active employment.  To be eligible for the FEHB Program in retirement one must be entitled to retire on an immediate annuity under a retirement system for civilian employees (also FERS + MRA) and continuous enrollment or coverage as a family member.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

DO ALL FEDS HAVE ACCESS TO ALL HEALTH PLANS

MedicareThere are probably more than 256 different plan choices within the Federal Employees Health Benefit (FEHB) Program, but every Federal employee cannot participate in every plan.  The plans may be available based on the region or jurisdiction you live in.  Most Federal workers will have a choice of at least 10 to 20 plans to choose from.  It really is not all about the number of carriers from which you have the option of selecting, but what plan suits your needs including affordability.

Although the plans offered via FEHB are highly affordable given non–Federal offerings, it remains wise to carefully evaluate what your earnings can afford.  The FEHB is a shared-cost program between employee and employer.  There are no Federal plans that pay the full cost of coverage for the employee or the annuitant.

Medicare is the primary for annuitants and FEHB is the primary for active Federal employees.  There is an exception to active Federal employees we should mention.  As of 2014 Members of Congress and certain members of the Congressional staff are no longer eligible to enroll in plans offered under the FEHB Program as active employees.  If members of the group enroll in a program offered via SHOP (Small Business Health Option Program) exchange they remain eligible for the employer portion of the contribution for coverage.

OPM is charged with overseeing and administering the FEHB Program and has statutory requirements to enter into contractual agreements with carriers that offer comprehensive health care services for Federal employees retired and active, except under certain conditions as outlined in the Health Benefits Manual for Members of Congress and Certain Congressional Staff.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

SELF-PLUS ONE ENROLLMENT

Federal employeesIt is nearly here – an enrollment type that fits you.  Not every employee needs Self only or Self and Family.  The world is changing and there are many family types and categories that describe what we need in health care and so many other venues of our lives.  Many organizations outside of the Federal government have long had the category of Self Plus One offered to its employees.

I recall negotiating a benefits plan for a large private organization a number of years past.  It was my intent to do a complete overhaul of the old benefits program because it was costing employees too much money.  The proposed overhaul required meeting with and researching the services of a number of carriers in an attempt to find what would benefit our workforce.  We had a number of young employees of child-bearing age and they were a part of the new and emerging family dynamic – single parent with a child and they needed a coverage type to address their status.

I found the Carrier and we implemented the new plan.  I remember the happy workforce and cheers because they knew how much the organization valued them.  We heard their voices and we acted.  If there was such a coverage type in the market, we were determined to find it and find it we did.  There is quite a cost savings between Family and Self Plus One.  The Office of Personnel Management has announced that the coverage of Self Plus One will be effective on January 1, 2016.  Therefore, the annual Open Season starting November 9, 2015, will include the new enrollment type in the available choices.

Federal employees need to pay close attention to this option in the event it is an option that will better serve their individual needs.  Don’t just let Open Season come and go without really looking into what might be a new and improved service with your current carrier or perhaps another carrier.  Sometimes complacency can result in not getting the kind of information needed to set you and your family on a more productive path.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

THE ANNUAL CALL FOR BENEFIT AND RATE PROPOSALS

BENEFIT AND RATE PROPOSALSCalling all Federal employees active and retired.  This is where you can make a real difference.  Each year the Office of Personnel Management sends out a Call Letter to Carriers who desire to apply or reapply to provide services to the largest workforce in the world via the Federal Employees Health Benefit (FEHB) Program.  The annual call letter articulated and set-forth a number of policy goals and initiatives for the 2015 FEHB Program.  This is what OPM is prioritizing for 2015:

  1. Optimization of the delivery of prescription drug benefits.
  2. Enhancing wellness programs.
  3. Advancing quality of care.
  4. Ensuring mental health parity.
  5. Aligning the FEHB Program with the Affordable Care Act.
  6. Continuing to encourage porgrams and benefits that promote enrollment in Medicare Part B.

OPM encouraged the submission of innovative proposals for 2015 that would not simply contain cost but add value to the delivery of services promoting a quality of care to improve enrollees’ health.

Ok, this is where you come in.  OPM issues the mandate of what is expected from carriers.  The only real and substantial data to determine performance by carriers has to come from you.  How do you rate the services you are getting from your carriers?  It is important that you communicate the kind of services you are receiving from you carrier to OPM because you are ultimately the rater of your carrier’s performance.  Take note of the priorities listed by OPM and maybe you have somethings you’d like to see OPM prioritize – let them know.  OPM works for the Federal workforce and they do a good job at surmising what benefits you need based on the market, but you are the best resource to let OPM know what you need and what you want.

You are certain to never get what you want if you don’t have your say.

P. S.  Always Remember to Share What You Know.

Dianna Tafazoli

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