In the wake of COVID 19, medical and economic emergencies have been implemented all over the USA. The bailout package of $2 trillion from the Senate paved the way for comfort for people of the country.
In addition to this, in the second week of April, the Office of Personnel Management (OPM) added good news in the stockpile of bad news. The announcement was about the revision of recruitment and retention incentives due to the outbreak of COVID 19.
Amid the crises caused due to COVID 19, the whole world is facing hard times. Therefore, the government of the USA has approved a bailout package of $2 trillion. This package comprises some aid for each sector. On the other hand, each department is also making ventures to add maximum benefits for the employees of that specific department.
In this article, we’re going to tell you about the latest move by the Office of Personnel Management (OPM) in which changes have been introduced in the recruitment and retention rules amid the crises of COVID 19. These changes are for the employees’ ultimate benefits, and a lot of their problems will be resolved through this amendment in the recruitment and retention incentives.
This step has been taken due to the limited resources of federal agencies that they are utilizing in the fight against COVID 19. Now, this addition would genuinely help the federal agencies in coping with the menace of COVID 19. Let’s have a look at what conveniences have been added in this post published by the OPM.
What are the Benefits?
The OPM has added several benefits for the federal agencies. These arrangements would increase federal agencies’ ability to provide their employees with better facilities to cope with COVID 19.
According to the post on the OPM website, the payment limits on “3R” incentives have increased from 25% to 50% of the employees’ basic pay. But this facility will be added if “critical agency need resulting from the coronavirus disease pandemic health crisis.” So, it becomes clear that the step has been taken to secure the federal agencies from the severe and adverse effect of COVID 19.
In normal conditions, agencies offer maximum premiums of up to 25% of the basic salary of the newly joined employee for four years. But, with the provision of this amendment, agencies have to add a 25% extra premium to the basic pay of the employees. The thing that adds convenience for employees is that the OPM can add 10% more than the 25% that has been ordered from OPM.
The agencies themselves will decide the addition of this 10%, and there will be no need for confirmation from the OPM. But this addition will be for the eligible group of employees.
The OPM office added its remarks in the following words:
“With the COVID-19 outbreak, agencies may request a waiver to those rules, which could increase the 3R premium pay cap to 50% in some cases. Agencies’ requests may cover multiple positions and grade levels, provided that the ‘supporting information’ covers all of the positions.”
Heroes Fund:
To add more convenience for the employees who are fighting on the front lines against the pandemic of COVID 19, congress intended to provide them with the Heroes fund. This fund may be mainstreamed from the start of the next month. Moreover, according to this fund, employees who are fighting against COVID 19 will be able to get $13 more per hour, and the cap value that has been decided for this is $25,000.
So, this fund can also be referred to as a risk or appreciation fund for the front line workers against COVID 19. This additional amount would help them in doing their duties with more passion and zeal. Meanwhile, it has been directed that this additional payment will remain until the pandemic is over.
Like many other supporters of federal employees, one supporter who is also a lawmaker expressed his views:
“Our proposal would ensure all federal government essential frontline employees receive the same $25,000 premium pay benefit provided to other essential workers.”
He also criticized the government’s policies over the policies it implemented for fighting against COVID 19. He said;
“Certain federal workers are entitled under current law to a maximum 25% hazard premium for exposure to hazardous substances, including virulent biologicals. However, President Trump has failed to activate this policy for the federal workforce during the COVID-19 pandemic.”
The Decrease in the Number of Requests for Retirement:
When it comes to retirement, there are two cases, one belongs to the employee who has completed its service, and the other one belongs to the person who wants an early retirement. So, those who have completed their service must take retirement. On the other hand, many people want to consider retirement before their service tenure ends.
But, now, in the wake of COVID 19, the number of those who wanted to have early retirement has reduced considerably. Moreover, the effect of these incentives can be seen, as people don’t want to miss these opportunities that have been mainstreamed by the OPM on behalf of the federal government.
So, the right estimate of the number of people who have quit their idea of retirement can be seen by the number of applications for retirement received by the OPM office. In the last month, the OPM office finalized a total of 8,931 pleas for retirement issues. This month, the claims received by the OPM office are 6566, which is about 3000 less in number than the previous month.
So, due to the pandemic of COVID 19, there has been an apparent reduction in the number of people who quit their idea of early retirement. This is especially so in the case of federal employees, as a massive reduction in the name of pleas about early retirement has been reported from the OPM office. Moreover, as per the prediction that this number will remain low unless the economy returns on the right track.
Having gone through the steps taken by the OPM office on behalf of the federal government, it is evident that the Federal government is extending its full endeavors to minimize the impact of this lethal pandemic on its national and other employees.
On the other hand, the addition of the Heroes Fund will be the best part played by congress in appreciating the efforts made by the front line workers fighting against this pandemic in these harsh circumstances.
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After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.
Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.
Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.
Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.
Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.
With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.
Aaron can help you and your family to create, preserve and protect your legacy.
That’s making a difference.
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