Issue 30-17
(for the week of July 21st – July 28th)
Too busy during the week to keep up on all the news around your employee benefits and pay? My weekly summary of some of the most interesting and relevant news stories could help, and includes some of my insights. You might just refer to it as “What’s George reading this week?”
By the way, if you’ve read something about your employee benefits that you think is important or interesting, send it to me. And, let me know about news sources that you follow. Have a great weekend.
George Ray
Federal Benefits Online
This week’s news includes a broad array of stories on your pay and benefits including the modernization happening at the Thrift Savings Plan, what you should know about your benefits if you leave Federal service, and legislation that would make it easier to fire Federal employees. I’ve also included a frequently asked question about getting married after retirement and survivor benefits that I answered in a blog post this week. Let’s get started.
Senate Committee Plans TSP Withdrawal Bill Markup
From Govmatters.tv
Kim Weaver, Director of External Affairs for the Federal Retirement Thrift Investment Board is interviewed by Francis Rose during this six minute video segment, and provides an update on changes that are taking place at the TSP. Lots of IT upgrades internally will help with security and improving account management, but won’t be noticeable to most participants. What will be noticeable is a new look and feel for TSP.gov which is coming soon. In addition, the bill to increase distribution options is still moving through Congress and does have bipartisan support. The expanded TSP distribution options will make the TSP more valuable for retirees. For more about the bill, see my recent blog post here.
Thinking About Getting Out of Government? Here’s What You Need to Know
From Govexec.com
What happens to your employee benefits when you leave service prior to normal (or standard) retirement? This is a question that many Feds have been considering lately. Regular contributor to Govexec Tammy Flanagan summarizes the consequences of leaving service on your FERS pension, TSP, insurance programs, Social Security, annual leave, and sick leave in this concise article.
Legislation Introduced to Make Federal Employees ‘At-Will’ Employees
From FedSmith.com
Last week we read about Democratic Representative Anthony Brown of Maryland who introduced a bill to roll back employee contributions to the FERS pension plan. I said that he was your new best friend, and that you should text him with hearts and hugs emojis. But this week, Ian Smith of FedSmith reports that Congressman Todd Rokita of Indiana introduced The Promote Accountability and Government Efficiency Act which would proposes to make you an ‘at-will’ employee. (If you text him, you’ll probably want to include a poop emoji.) The bill would allow Feds to be removed or suspended without notice or right to appeal. It would limit pay raises only to employees that receive 4 or 5 out of 5 on performance reviews, and more. It should go without saying that union and employee interest groups are voicing their displeasure.
GAO Finds Phased Retirement Can Benefit Employees, Management
From Govexec.com
Back in 2012 when phased retirement was introduced, it was supposed to be a win for the agency, the employee, and the American taxpayer. There have been many challenges to implementing the program and promoting the benefits of it which have been reflected in the low number of agencies and their employees who have used the program. Although the numbers have increased, the GAO reports that only 259 Federal employees have applied for phased retirement as of July 25, 2017.
Here’s something to consider -- could phased retirement play a more important role in dealing with the coming budget cuts and staffing reductions? Those employees already eligible for a standard retirement won’t benefit from the incentive of an early retirement offer (VERA). Could both the budget and the chaos be reduced by arranging to have higher-paid Feds cut their pay and work schedule by 50% in exchange for half of their pension? The big question is how to convince Feds who are already eligible to retire to stay through the turmoil to train their replacements.
Getting Married After Retirement and Survivor Benefits
From federalbenefitsonline.com
“What if I get married after I retire, can I still get a survivor benefit for my new spouse?” This question comes up frequently in benefits training sessions that I conduct. Or, sometimes it’s a variation of that question. Rather than ‘can I give my spouse a benefit?’, it’s ‘do I have to give a survivor benefit to my new spouse?'. The short answer is that you can elect to provide a survivor benefit, but you’re not required to provide one. After answering the question, the real value that I provide is in asking a better question -- should you?
See you next week. Thanks.
P.S. -- If you know someone who needs help with understanding and wisely using their benefits, let them know about my e-learning course for FERS-covered employees. A 25% discount on enrollment is available through July 31st by using the coupon code 'launch25'. Learn more and enroll here.
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Issue 30-17
Published by Federal Benefits Online.
Copyright © 2017
Author: George Ray