federal employee
A federal employee is a qualified individual who serves the federal government. There are many sectors a specific employee can be serving the government in.
TSA Finds a New Home – by Dianna Tafazoli
TSA is Moving
The Transportation Safety Administration (TSA) has several offices in the Virginia. TSA Administrator Peter Neffenger has announced that the massive agency will be consolidating all of its locations in Virginia to Eisenhowe Avenue in Alexandria, Virginia.
The agency has been criticized in recent years over security concerns. TSA federal employee personnel have been found sleeping on duty and other workers have missed items in luggages that could have represented a security issue. More and more passengers have been removed from planes either because of over zealous aircraft attendants or perhaps unruly passengers.
The TSA is responsible for airport security all over the country with some of the largest airports in the world with ongoing passenger and cargo traffic that is nearly immeasurable. The TSA’s duties and responsibilities are wide and varied. Although the TSA is challenged by safety and security issues, Security Officers have prevented more than 181,000 dangerous items including 2,200 firearms from being carried onto planes.
They have screened an average of 6 million air passengers against the government’s screening database. The TSA has prevented known or suspected terrorists from getting on planes with unsuspecting passengers and airline personnel. TSA federal marshals protect thousands of flights. TSA inspectors reported that more than 1,054 airport inspections took place and more than 17,894 aircraft operator inspections with 2,959 foreign air carrier inspections to assure the public and other stakeholders that the TSA is in compliance with established rules and regulations governing air traffic.
TSA continues to be challengd to protect the nation’s transportation systems including mass transit, rail, highway and pipeline sectors. The TSA is working to continue developing a professional and dedicated array of staff committed to protecting the nation’s total transportation concerns. TSA will be moving to its new home in 2017.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli
FEGLI – Making Plans Today If Tomorrow Never Comes
Making preparations to care for your loved ones after you take your final breath is never an easy topic – but FEGLI or other Federal Life Insurance may be able to help make it a bit less frightening. But ensuring your family is able to sustain their standard of living after you’re gone is an essential conversation. However, choosing the correct life insurance can be an overwhelming task. Knowing the ins and outs of the Federal Employee Group Life Insurance (FEGLI) will help you chose the path best for you and your family.
Let’s start with the most obvious question, how much insurance do I need to protect my family for years to come? You many begin to think to of the life milestones that come with a hefty bill: paying for the funeral, college for your children, paying off the mortgage, miscellaneous debt and supplement income for your spouse to determine how much insurance you will need to protect your family. If you have a young family, generally 10-12 times your salary will protect your family’s standard for living for many years to come.
While there are a number of different life insurance policies, the FEGLI utilizes the group term policy. A group term policy covers enrollees for a set amount, or a multiple of their salary, for as long as the employee is employed and pays the premium. FEGLI also does not require enrollees to take a medical examination or limit participation; making this an accessible option for individuals with existing health conditions, poor driving records or dangerous job positions.
Federal employees are automatically enrolled in the basic FEGLI plan, which will cover the federal employee’s salary with an additional $2,000; this is partially supplemented by the federal government. As for Postal workers, the United States Postal Service will supplement the coverage and also doubles the death benefit for employees under the age of 35 free of charge. On top of this, employee have the choice to pick “Option A,” which adds a lump sum of $10,000 to the policy, or “Option B,” which allows employees to a multiple of their salary to the policy, up to five times their annual income, and lastly “Option C,” which provides some protection for the employees spouse and dependents in multiple of $2,500 and $5,000. The FEGLI is also an attractive option for many employees due to its fixed rate; unless an employee has picked “Option B,” then the rate will gradually increase as each new age bracket is entered into.
While you and your family’s needs will change as time passes, there are only certain times that employees are allowed to increase or change their coverage. When an employee first in-processes into the system they can set up FEGLI, when an employee marries or has a child and during the employee open season. However, decreasing or eliminating your coverage can be done at any time.
FEGLI also offers options such as taking reduced amounts in retirement. Employees that carry FEGLI coverage until retirement are eligible for the 75 percent reduction option. Meaning, employees will have a policy that has a face value of 25 percent of their ending Basic benefit plan. This will allow the employee to maintain coverage for the rest of their life, but not have to worry about the paying the premium after the age of 65. This can be useful in providing a benefit to cover final expenses at no cost to the federal employee retiree. If you designated an assignee, the assignee has the right to change an employee’s election to the maximum 75 percent.
While FEGLI seems like a straight forward and accessible answer for many, there have been a few recent policy changes that enrollees need to be aware of. Federal employees who may be in unfortunate position to qualify for living benefits need to be aware that the new policies are not the same for active employees and retirees.
Both active and retired employee are deemed eligible to receive a lump-sum living benefit from FEGLI if they present a documented prognosis stating the employee is terminally ill and is not expected to live longer than nine months.
Active employees have the options to either receive a partial benefit in multiples of $1,000 or the total amount of their Basic policy in a lump-sum. If an employee retires, the amount of Basic Life insurance payable after the employee’s death is dependent on the Living Benefits an active employee received initially. Annuitants only have the option to receive a lump-sum benefit.
In contrast, retirees who elect to receive the Living Benefit will no longer be eligible for the Basic life insurance following their demise. Upon receiving the Living Benefit, the premium for the life insurance will no longer be charged to the retiree.
In all cases, active employees and retirees who receive living benefits will still have any optional life insurance available to them and their family.
Especially when a federal employee is just starting out FEGLI offers an affordable and accessible coverage for federal employees to obtain financial protection for themselves and their loved ones. But it always a good idea, that as an employee ages, they begin to consider other Life Insurance options – outside the FEGLI system. Compare your FEGLI coverage with outside companies – you might find a much less expensive plan.
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Thrift Savings Plan Features – Low Administrative Fees
The Thrift Savings Plan (TSP) is far from alone in offering “index” funds to investors. Many organizations offer similar funds, but one marked difference are the “administrative expenses” that the TSP and other organizations charge.
Think of TSP administrative expenses as a fee, taken out of someone’s investment in a fund — to pay for operating the fund. The fee is a small percentage of the total investment; but even that small percentage, over time, can take a significant bite out of an investment.
The lower the administrative expenses, the smaller the bite — and the more quickly an investment can grow.
In 2014, the administrative expenses for TSP funds were just under .03%. In other words, for every $1,000 of investment, the admin expenses were about thirty cents.
So, how does that thirty cents per thousand dollars compare with the administrative expenses of other index funds? It compares quite well.
Thrift Savings Plan (TSP) Examples
For example, Vanguard offers a fund that, like the TSP’s C Fund, mirrors the performance of the 500 stocks in the Standard and Poor’s S&P 500 index. However, in the Vanguard fund (Vanguard 500 Index Fund Admiral Shares) the administrative expenses were .05% compared to the .03% for the TSP product.
The Fidelity S&P 500 fund (Fidelity Spartan 500 Index Advantage) had administrative expenses of .07% as did the TIAA-CREF S&P 500 Index Institutional.
Even more striking contracts exists with the TSP’s S Fund and similar funds. The S fund has, as its objective, matching the performance of the Dow Jones U.S. Completion Total Stock Market Index — a broad index of stocks of U.S. companies that are not in the S&P 500 index. The comparable Vanguard fund (Vanguard Extended Market Index Fund Admiral Shares) has administrative expenses of .10%, more than three times higher than the expenses of the TSP’s S Fund.
Another fund that is similar to the TSP S fund is USAA Extended Market Index Fund. It’s administrative expenses were .48%, more than fifteen times higher than the TSP S Fund’s administrative expenses.
The same kinds of comparisons exist in bond funds. The TSP F Fund has as its objective matching the performance of bonds in the Barclays Capital U.S. Aggregate Bond Index. This index represents the broad U.S. bond market. One comparable bond fund is Fidelity’s Spartan U.S. Bond Index Fund – Investor Class. That fund’s administrative expenses came to .22%, more than seven times higher than the S&P’s F Fund expenses.
Advice to investors often includes the recommendation to check administrative expenses before deciding to get into or to stay in a particular fund. In such checks, the TSP Products will likely compare favorably. The favorable comparisons are likely to apply both for TSP’s individual funds (C, S and F, for example) as well as for TSP’s Life Cycle (L) funds.
However, administrative expenses are not the only consideration in choosing an investment. Perhaps the convenience of dealing with one firm over an other offsets paying higher administrative expenses on a similar index fund. Furthermore, since different funds often have very different investment objectives, the purposes of the funds (as they relate to an individual investor’s needs) is likely to be a more important consideration than the funds’ administrative expenses.
To sort out questions of where to put their investment dollars, many investors profit from the advice of a knowledge and well-trained financial advisor. Nevertheless, whether acting on their own or with an advisor, prudent investors may want to add administrative expenses to the factors they consider before making investment decisions.
— by John Zottoli. John is a retired Federal human resources specialist who takes an interest in all aspects of planning for retirement.
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Are Hackers Smarter Than The Government’s IT Developers
Are Hackers Smarter Than The Government’s IT Developers – By Dianna Tafazoli
The Director of the Office of Personnel Management (OPM), Katherine Archuleta, became another ‘casualty of war’ when the records of millions of Federal workers active and retired were hacked compromising their safety and security. The Director testified on Capitol Hill and seemed to play down the severity and quantity of the data breach. However, unions differed with Ms. Archuleta’s perspective and began filing law suits against the agency.
Ms. Archuleta vowed that she would not step down when more and more calls for her resignation filled the Washington airways. Late Friday evening Ms. Archuleta went to the White Office and moments later, her resignation had been given and accepted by the President and an acting director was in place. Beth Cobert, U.S.. Chief Performance Officer and Deputy Director at the Office of Management and Budget will hold the reigns at OPM until a replacement is named.
The breach was not the original 4.1 million records initially reported by Director Archuleta, but more than 22.1 million records. Will getting rid of Katherine Archuleta fix OPM’s problems or the problem of hacking anywhere. I don’t think so. Criminals always seem to be smarter than the Police. They usually have better or more sophisticated weapons. And in this case, OPM is the police and the hackers are the criminals. It would be a safe bet to say that the hackers know much more about IT than OPM or the rest of the government.
Accountability is mandatory at every level of management and non-management as well. However, I am not certain that hackers can be stopped anymore than we can stop many of the other ills we struggle with in this country. There are too many to name. The remedy for hacking might rest squarely with what kind of information is placed in data banks, not whether the data can be hacked or not. The system needs to be revamped. It is too easy perhaps for hackers when databases use social security numbers, names and addresses. Data that is not easily deciphered is the key to controlling data breaches.
The world has gotten smaller and the world has changed so significantly from what it used to be 30, 40, 50, 60 or even 70 years ago. Yet, when applications are completed and information is requested, it is the same ‘old’ thing – name, social security number, address, phone number and on and on. If programmers are still dancing the same waltz with no new steps added to make it not rote to learn, then the hacker’s job is probably relatively easy.
The government cannot continue using the same ingredients to make chocolate chip cookies and expect to get Swiss banana pecan chocolate potato chips as a result. Stop data breaches, stop the hackers – change what goes into the data set. A change as small but as significant as what goes into the data set will confuse the hackers long enough so that by the time they unravel the system, you are two steps ahead changing the data input yet again. Security protection means constant change to stay ahead of the criminals.
Dianna Tafazoli
P.S. Always Remember to Share What You Know.
More OPM Data Breach Related Articles
Cyber ID Theft…How Are You Protecting Yourself? by Gary Fouts
Largest Federal Employee Union AFGE Files Class Action Lawsuit Against OPM
OPM Cyberattack Update – 21.5 Million Social Security Numbers Compromised
Largest Federal Employee Union Files Lawsuit Against OPM
Largest Federal Employee Union AFGE Files Class Action Lawsuit Against OPM
The American Federation of Government Employees (AFGE) has filed a lawsuit against the Office of Personnel Management to hold the agency and other defendants accountable for the devastating cyberattacks.
The cyberattacks against OPM compromised the personal and security files of some 18 million or so current federal employees and retirees.
The federal class action lawsuit, filed in the U.S. District Court for the District of Columbia, has the AFGE and two individuals, Robert Crawford and Adam Dale, as lead plaintiffs. The class members and plaintiffs include current, former, and prospective employees and contractors of the U.S. government.
The lawsuit seeks injunctive relief, and actual and statutory damages. Other than OPM, the other named co-defendants are OPM Director Katherine Archuleta, OPM Chief Information Officer Donna Seymour, and KeyPoint Government Solutions.
Injunctive relief in this case means the OPM needs to beef up its data security. A statement issued by AFGE National President J. David Cox Sr. and others says that “Even after this historic security breach, OPM has continued to use poor data security practices and inferior private-sector strategies to solve its security woes.”
They are also seeking more information about the data breach. “Despite putting government employees and their loved ones at significant personal and financial risk, OPM has failed to reveal the full scope of who was specifically impacted by the data breach and the extent of the information taken.”
The statement adds that AGFE is working with its federal employee and retiree members to ascertain the breadth of the breach and obtain feedback on OPM’s response.
OPM Director Katherine Archuleta says in a blog post on the OPM website that “I want to personally apologize for the inconvenience, but know that we take very seriously the responsibility OPM holds in securing Federal employee data. Improving OPM’s IT security posture is the utmost priority as we work to recruit, engage, and honor America’s talented and hardworking Federal workforce.”
The class action lawsuit is no doubt rather an unprecedented and extreme step by the largest federal employee union that represents 670,000 federal employees and DC government employees. But AFGE feels that since OPM is unwilling to provide adequate assistance, they have to take this step to gather more information and hold the agency accountable.
It’s a sad commentary on OPM’s operational processes, since their inability to secure data created the problem, and now they’re digging an even deeper hole because of their inability to provide enough data to the affected federal employees.
More OPM Data Breach Related Articles
Cyber ID Theft…How Are You Protecting Yourself? by Gary Fouts
OPM Cyberattack Update – 21.5 Million Social Security Numbers Compromised
Are Hackers Smarter Than The Government’s IT Developers – By Dianna Tafazoli
Deck the Halls With Safety and Joy
Federal Employees and Public Safey Concerns
As Federal Employees we live in a nation of – reaction. Recently the subject of violence against women has filled the airways and nightly news. Violence against women is nothing new and when we become more pro-active as opposed to being re-active, such issues will be openly addressed, explored and moved to resolution status. Both men and women can be the victims of violence. However, it appears that women are more often the victims of domestic violence than men. Physical strength is probably one of the primary causes of women being victimized disproportionately by men. We could name a number of reasons why violence is a consistent menu item in many domestic situations across all socio-economic, racial and cultural lines.
Many women become silent enablers because they feel ashamed and think society might give them some particular label if they are being beaten by men in their lives. Perhaps, they don’t want to break up their families, ruin careers, or change life-styles. It might be a number of reasons but I was taught early in life that love does not require bandages. The one thing that exposes the secrets in the basement is open communication. Once you start talking, you will soon understand that what is in your basement is not unique to you. I have a dear friend, an esteemed news reporter, who told me about how she was both verbally and physically abused by her boyfriend. She told me he made her feel ugly and unwanted until one day she felt it would be easier to be without a home temporarily than to continue being abused by a man who said he loved her. No bandages, please.
I love her and admire her for telling me the story because my beautiful, talented, gracious friend does not own that story alone. She was one of the brave ones, one of the lucky who got out with her life, reclaimed her dignity and went on to be a well-known reporter and inspiration to many. The Military is a tough place to be for active duty service men and women and their families. These individuals who make so many sacrifices for the safety of their nation face, particularly in the time of war, circumstances we cannot begin to imagine. Is it possible that they may return to their families and friends psychologically and emotionally impacted and broken by the ugliness of war, death and killings.
I have never seen a person or an animal shot or killed except on television and I grimace at the thought. I cannot even begin to imagine living with having taken someone’s life even in battle. To be a soldier is not easy and we need to understand the psychological trauma these brave men and women must endure. Although soldiers are certainly not the only individuals who experience violence in their homes or their environments, it is something that knows no name, no color, no gender, no socioeconomic status, no letters behind one’s name.
Many organizations, federal and private and the military have Employee Assistance Programs (EAP) focused on assisting employees who have troubles. As a seasoned leader of HR on both the federal and private side, I know that EAP is not enough in its current format to do the job and render the services needed to support people in crisis and their families. It is all too often that employers and places of work, not properly trained in recognizing and handling the dynamics of crisis and mental health issues, contribute to the already fragility of many employees.
The holiday season is a time of joy and celebration. It is also a time where many experience depression, loneliness, sadness and despair. It is time where we must be cognizant and vigilant about – Am I My Brother’s, My Sister’s Keeper? Yes, I am. Yes, you are. When even one us suffer on the planet, somehow, someway, eventually it trickles down to all of us. Be safe, be mindful of others for the sake of your safety and theirs and the joy and prosperity of our nation.
P. S. Always Remember to Share What You Know.
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Santa’s $100 Dollar Bill Scam
When many of us were children, Santa represented something mysterious, wonderful and nice. Santa was also known as the great spy-master who knew whether I was naughty or nice. Well that was then and this is now. We have talked about scams and cautioned seniors and retirees to be aware, and also the rest of us.
The Marine Corps Base at Quantico, Virginia is warning the military community that there is a rise in carjacking due to a $100 bill Christmas scam. This is how it works. The fake do-gooders place a $100 bill under the windshield wipers on the car. The driver sees the money and thinks – my lucky day. When the driver gets out of the vehicle to retrieve the free money, the scammers pounce upon the unsuspecting victim demanding money, car and the joy of the holiday season is deflated like a balloon with a hole in it.
There is no free money. If anything strange is left on your windshield even a nice, crisp $100 dollar bill, start your engine and drive away preferably to a police station. The people who left the money may follow you since they see you did not fall for their scam in an effort to get their money back. Chances are the bill is probably a fake and they won’t follow you, but it is better to err on the side of caution. Unfortunately, holidays have become a signal for scammers to get busy scamming. They target seniors, retirees, parents taking children in and out of car seats, and just unsuspecting holiday shoppers.
The $100 bill scam is a good one because these criminals know people are lured by the free cash and are understandably distracted. The holiday season is a time to reflect on what a wonderful world we live in and it is also a time to understand that that world can also be very dangerous.
P. S. Always Remember to Share What You Know
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Many Federal Employees See the End fo the Year as a Good Time To Retire
Are you planning to retire at the end of the year, starting 2015 as a retiree instead of an active Federal employee? You might hear a number of rules and reasons when you should retire. However, the day you retire is a very personal decision hopefully based on planning and sharing with your family and close friends. Everybody’s circumstances are different and should not be compared to anyone else’s.
Many people start planning for retirement 20 or more years prior while others allow retirement to creep up on them. Whether you fit into the first group, the second or none, when you retire is a decision that is yours and yours alone. Nobody knows better what your circumstances are and how you are equipped to deal with them. You do, however, want to get the greatest value possible out of your benefits when you retire.
You want to make sure you are retiring at a time where you have gotten the maximum benefit from your annual and sick leave. For both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) sick leave adds value to your retirement so you want to save as much as possible. Only months and years are used when calculating your years of service, days are dropped off. If you need to work a while longer so that your days can be turned into months or perhaps years, hold on a while longer if you can to reap the benefits.
By the same token, save up as much annual leave as allowed because you will need it if you have to wait to receive your annuity. Your annual leave lump sum payment generally gets to you fairly quickly and can often serve as a gap filler while waiting on your annuity check. Even when you receive your annuity check, it might be an interim check which is not equivalent to your full retirement annuity. Although your lump sum annual leave check is generally taxed at the 20 percent rate, it will still be a life saver if you need extra money and your budget is tight.
It might be a good idea to delay costly vacations when preparing to retire and save your leave to enhance the way you are able to live in retirement. On the other hand, you might have a completely different perspective on how you should handle your leave and your retirement years. Whatever decision you make, be certain you have done your homework, put some plans in place so that your retirement is comfortable and secure.
P. S. Always Remember to Share What You Know.
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The Gift of Giving
The Generosity of Federal Employees
Often 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.
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Should You Purchase an Annuity?
A 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
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Mark Your Holiday Calendar Annually
Important Holiday-Season Reminders for Federal Employees
Below is a list of suggested items you should mark on your calendar annually whether you are near retirement or just beginning employment in the Federal service:
- Your annual physical check-up to include a Thyroid check especially for women
- Your annual dental check-up
- Your annual eye examination*
- Annual mammograms (if suggested by age) for women and sometimes males
- Annual PSA (Prostate Specific Antigens) if suggested by age for men
- Annual check-up of your electronic Official Personnel Folder (eOPF)
- Be sure to check that your beneficiary forms are up-to-date
- Check your Thrift Savings Plan (TSP) not found in your eOPF, and make certain your TSP beneficiary forms are also up-to-date.
- Check your leave record for both sick and annual leave. Keep your end-of-the-year pay stub to check against W-2s for tax returns. Most of this information is accurate from your payroll office but it can have errors.
- Check your retirement estimates to see if you need to make changes to your financial profile in the coming year, such as increasing savings to close any potential income gaps you might have in retirement..
- Make sure that exercise and sensible eating habits are a part of your annual check-up to living and retiring well.
*This examination is very important even if you think your prescription has not changed for glasses or contact lenses. There are no real symptoms for many eye diseases even those leading to blindness, so make sure to take care of your eyes so you can continue to have a good view of the world.
P. S. Always Remember to Share What You Know.
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The Holiday Season is Not Always Jolly
For 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.
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Is There an Advantage to Phased Retirement for Retirees
Well, first and foremost you cannot be a retiree and participate in Phased Retirement. There are a number of rules in order to participate in Phased Retirement. First, the agency must grant the request for a worker to take part in the program. Only those individuals eligible for regular voluntary retirement can participate in the program having the requisite age and service requirements. The age and length of service requirements differ between CSRS and FERS.
Because of the way the defined benefits programs (pension plans) are designed for CSRS and FERS employees, the salary amount would differ between the two for a Phased Retirement calculation as it does under ordinary circumstances. Individuals contemplating participating in Phased Retirement must do their homework and be just as diligent as they would be if they were retiring under traditional protocol.
It is always wise counsel to put the numbers on paper so they become real as individuals calculate the pros and cons of participating in Phased Retirement or simply retiring with the knowledge that their annuity will look decidedly different than their biweekly paycheck. However, adding on additional time for FERS employees who have already reached their FERS retirement age will not have the same impact as it would with CSRS employees. The same kind of analysis is needed here that is apparent when persons eligible for Social Security benefits decide if it is good to take the benefit now or wait until later.
You are the best advisor – you the Federal employee – because you know more about your finances and your issues than anyone else. There are private affairs you perhaps do not feel comfortable sharing maybe not even with a financial advisor. However, workers and their spouses, partners or family members should have an evaluation session that involves what you have and or likely to have weighed against your expenses. Although some expenses will decrease in retirement, others will increase, particularly medical expenses and no matter how you slice the pie, your annuity will not be as much as your biweekly paycheck.
There are a lucky few who will have enough savings and investments to ride it out and enjoy a secure and safe retirement. For the rest of us it is merely a wish list.
P. S. Always Remember to Share What You Know.
Dianna Tafazoli
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Will Insurance Premiums Rise For Federal Employees?
Health Insurance Premiums and Federal Employees
There has been plenty of talk about health insurance premiums being on the rise with more of the financial responsibility being placed on the employee. The premiums on health insurance for Federal and Postal employees will slightly increase but with no real impact on the average employee because of the size of the Federal workforce. Some other employees outside of the Federal government might not fair as well. Much depends on the size of the organization and the strength of the company’s revenue stream.
Many Federal employees have spouses who work in jobs outside of the Federal service and have chosen to use the non-Federal benefits to cover health care costs for their families. As Open Season approaches, it is good time to evaluate the Federal health care benefits (FEHB) available to you and your family. If you are in the position of deciding between Federal benefits and non-Federal benefits just line up the offerings side-by-side and carefully assess what is offered for each and what your family is more likely to need.
Except for what is termed -Golden Handcuff- benefits, it will be hard to find benefits that out rival those offered by the Federal government because of shear numbers. Federal benefits cover over 10 million active and retired employees and their families. Therefore, before waiving your rights to Federal health benefits coverage make sure you are sitting down with your family and your benefits specialist to make certain you are not making a decision that will cause anxiety in the future.
Another thing to remember, don’t be embarrassed by asking a benefits specialist or some other professional with an in-depth knowledge of benefits to help you sort out your situation. I think it would be too presumptuous to say that no other benefits package can compare to what is offered to Federal employees. However, it is relatively safe to say that it will be hard to find a benefits package more comprehensive than what is offered to Federal employees at a highly affordable cost.
P. S. Always Remember to Share What You Know.
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Open Season and Other Benefits
Enrollment For Federal Employee Benefits
The Thrift Savings Plan (TSP) no longer has an Open Season. Employees may start, stop or change their TSP contributions or participation in the TSP at any time.
The Fe
deral Long Term Care Insurance Program (FLTCIP) also does not conduct an annual Open Season. Employees can apply anytime for FLTCIP. There is a full-underwriting whenever you make the decision to participate in FLTCIP. Remember, the cost of long-term care insurance rises with age. The best time to enroll in a plan is prior to turning 50.
The Federal Employees Group Life Insurance (FEGLI) also does not have an Open Season. I can only remember two Open Seasons conducted by FEGLI (MetLife). However, employees may make changes in FEGLI at any time. Coverage can be decreased or waived by completing SF-2817 and forwarding it to your agency Benefits Office.
P. S. Always Remember to Share What You Know.
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What Federal Employees Need Prior to Open Season
What Federal Employees Need Prior To Open Season
Open Season Requirements
Open Season can be a very tense time for federal employees because of the many decisions to be made. Circumstances and conditions in families change and employees need to be ready to address those changes. Having information available prior to the beginning of the Open Season assists employees with making critical decisions. Personnel charged with facilitating the Open Season and who work with Federal Benefits are responsible for providing the employees within their agency with certain materials both in hard copy and on the agency’s internal mechanism for agency-wide communication.
It is recommended that a Check List be provided so that employees will have the benefit of checking off what they need in order to get prepared for the changes that might take place for them individually in Open Season.
A list of resources is also recommended to be available for employees and the specific benefits they are interested in or are seeking relevant and additional information.
An easy to understand explanation of how the benefits offered to Federal employees work in tandem to cover the entire health care needs of employees and their families – FEHB, FEDVIP and FSAFEDS is also recommended.
It is very important that employees take advantage of this pre-preparation time and talk to the benefits office to make certain they have all the information needed to make critical and sound decisions about their health care needs. Making changes involving health care needs are simplest during Open Season. However, if an employee needs to make changes after the Open Season period ends, there are circumstances by which this can happen so classified as a Life Event.
Work with your Benefits Office so that you understand what your options are for you and your family. Write down a list of questions and check them against your Open Season Checklist to make certain you are ready to protect the most important asset you and your family will ever own – Your Good Health.
P. S. Always Remember to Share What You Know.
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Benefits Specialists / Programs
What Specialists Are Available To Help Federal Employees With Benefit Selections
Individuals charged with overseeing benefits and helping to organize benefits and health-care fairs receive information needed each year from OPM in order to make Open Season happen in their individual agencies. These personnel receive from the Office of Health Care and Insurance:
Guides on Rider Information
Information booklets and materials- how to order the materials and distribute them during Open Season.
Information and directions on how to conduct the Open Season both in general and agency specific.
Significant event information is also distributed to agency personnel tasked with conducting the Open Season and
Information impacting specific plans in FEDVIP and FEHB.
Often times employees not tasked with Open Season responsibilities do not appreciate the tremendous amount of time and preparation that goes into making the Open Season happen. The personnel under the guidance of the Office of Health Care and Insurance must be able to answer a series of questions and inquiries to include contact information about participating carriers.
The Office of Health Care and Insurance provides FastFacts on Federal Benefits and so many other factors relevant to helping Federal employees make wise and cost conscious decisions about what is best for them and their families.
P. S. Always Remember to Share What You Know.
Open Season Related Articles
What You Can Do In Open Season
Open Season is an annual event for Federal employees. During Open Season, employees may do the following:
Enroll in a flexible spending account program (FSAFEDS) which is a health care and/or dependent care account. Participation in the program requires enrollment each year. The program does not continue like FEHB and FEGLI without re-enrollment. The maximum annual election for the Health Care Flexible Spencing Account and the Limited Expense Health Care Flexible Spending Account is $2,500 for 2015.
The maximum annual election for 2015 is $5,000 for a Dependent Care Flexible Spending Account. Also the minimum election for the flexible spending account has changed from $250 to $100 for 2015.
Employees can also enroll, change, of cancel an existing enrollment in their dental and/or vision plans under FEDVIP. The same holds true for the health plans under FEHB. There is no Open Season for life insurance under FEGLI.
P. S. Always Remember to Share What You Know.
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2014 Open Season
2014 Open Season for Federal Employees
Active Federal & Postal employees, retirees and their families should be on the look-out for Open Season which starts Monday, November 10, 2014 and continues through Monday, December 8, 2014. Open Season allows Federal Employees to make changes and add a qualified family member to their plan among other things. It is also a time to speak with your carrier and the FEHB representatives in your agency to ask questions and seek counsel about your benefits plan.
The Open Season covers health benefits (FEHB), dental and vision (FEDVIP), the flexible spending account (FSAFEDS). In order to help the process of choosing a suitable plan for you and your family, OPM has compiled a Summary of Benefits and Coverage (SBC). The SBC allows employees to make comparisons in costs, coverage, deductibles, co-pays, and out of pocket limits. The SBC also outlines for employees what services are available and covered and what services are not available and therefore not covered under a particular plan.
OPM offers the SBC for ease of comparison and a short-hand version of the many plans offered to Federal employees. However, in order to get a more detailed understanding of the plans and what they offer, it is always recommended that employees review and evaluate the plan brochure of the provider they are interested in.
There will most likely be a number of health fairs employees can attend in order to gain additional information. Also don’t forget about the use of the website to see what your plan covers. All FEHB plans are on OPM’s website for the convenience of all Federal employees, active and retired.
P. S. Always Remember to Share What You Know.
Open Season Articles
Time To Gear Up For Open Season
Postal LiteBlue and Open Season
What Federal Employees Need Prior to Open Season
Will Insurance Premiums Rise For Federal Employees?
