Weekend Reading on Your Federal Benefits 38-17

(for the week of September 16th – September 22nd)

You’re 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 you and includes some of my insights. You might just refer to it as “What’s George been 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

In this week’s benefits news, we’ll hear some agencies now say layoffs are unlikely, test your retirement readiness with a quiz, find that Feds are doing amazing things and winning awards, and learn about your spouse’s rights to the money in your Thrift Savings Plan. Let’s get started.

Some Agencies Say Reform Plans Won’t Focus on Job Cuts, Layoffs Unlikely

From govexec.com

This story will feel like a cool breeze wafting through the porch on a late Saturday afternoon while you sit comfortably sipping the beverage of your choice. We’ve been holding our collective breaths for months as we learned that the administration wants substantial cuts to agency budgets, and as a result, to the Federal workforce. There has been much talk and gnashing of teeth over the idea of Reductions in Force (RIFs) and the use of incentive tools like early retirement offers and buyouts.

Now, you can exhale. Agency leaders are saying that they want to minimize the use of those tools, and believe that they can meet their new budget targets by creating greater efficiencies in their agencies and through attrition. Yes, there will be some ‘de-layering’ to create those efficiencies and there could be some consolidation, however, agencies indicate they will work to help find employees new positions if they are affected.

Most employees remain skeptical and nervous at this point. Veterans Affairs Department Assistant Secretary in the Office of Human Resources and Administration Peter Shelby said “They’re scared. They’re flat out scared.” The most important and effective action now is communication. Agencies need to be as transparent as possible and get information about their plans into the hands of their employees. It would seem that some employees aren’t ready to exhale just yet --- and they’re starting to turn blue.

Issues on Capitol Hill impacting the Federal Workforce

From govmatters.tv

Even though agencies are suggesting to us that it’s OK to exhale, we are still holding our breaths when it comes to Congress and how legislation may affect your benefits. Francis Rose of Government Matters interviews Jessica Klement, Legislative Director for the National Active and Retired Federal Employees Association (NARFE) in this six-minute video segment. They discuss the ongoing budget decisions on Capitol Hill on how they may impact the Federal workforce.

The discussion begins with the recent announcement of the pay raise for 2018. Although Jessica highlights that it is lower than it should be ‘statutorily’, it’s better than having your pay frozen.

Current reconciliation instructions to the House and Senate committees are to look for $32 billion dollars that will help to pay for tax reform. Will Federal employees pay and benefits be used to help find those dollars? There are a lot of ‘what ifs’ right now. Jessica recommends that you pay attention, but don’t panic. And, of course, don’t make your retirement decisions based on what Congress ‘might’ do.

Influx of New Participants, Modernization Plans Behind TSP Board’s 20 Percent Budget Boost

From federalnewsradio.com

The folks at the Thrift Savings Plan just got a 20% increase in their budget for 2018 – an additional $52 million dollars. This will be needed to help transition and enroll as many as 300,000 to 475,000 new participants who choose to opt into the new “blended retirement” system, which kicks off January 1st, 2018. This happens as the military moves from relying on a defined benefit plan which required 20 years of service to be eligible for a pension benefit, to a more flexible option that includes a reduced defined benefit plan with greater TSP benefits.

In addition to adding and training new staff members who will be handling calls and questions from all of those newly eligible service members, the agency will use funds to bolster cybersecurity and enhance their IT infrastructure. Will plan participants see a 20% increase in their account fees and costs? Not likely, as the money is only charged to costs as it is used, and the use of these funds should be spread out over several years.

How Ready are You for Retirement? A Quick Quiz

From govexec.com

Tammy Flanagan gives us a pop quiz on our retirement readiness this week. There are ten questions to help you assess how prepared you are to leave Federal service. The questions cover the TSP, beneficiary designations, life insurance, health insurance, and more.

These aren’t true/false questions. In fact, each question has seven answers to choose from – and the answers are a bit wordy so you’ll need to do some reading. The quiz does need a little extra work because the answer choices are numbered, but some of the choices refer to letters (“a and b”) as an answer. There are no letters, but you should still be able to navigate through it.

Answer the questions honestly, then score yourself when you’re through to see how you’ve done. (You didn’t hear it from me, but If you decide to cheat, the best answer is always ‘d’). You’ll get 4 points if you’ve attended a webinar or retirement seminar, but what about taking control of your benefits with an e-learning course like my “Understanding Your Federal Benefits” program? I’m sure you’d deserve at least five points for that.

2017 Sammies Winners Announced

From fedsmith.com

It’s important to recognize that there are many Federal employees throughout the government that are doing amazing things for us and our country. Each year for the past 15 years, the Partnership for Public Service presents the Samuel J. Heyman Service to America Medals (a.k.a the Sammies) to Federal employees for their outstanding service to our country.

This year’s top honors are shared by three team members from the Environmental Protection Agency (EPA). These are the guys who discovered that Volkswagen had rigged their vehicles to circumvent US auto emission standards. "Their work led to a record $17.4 billion in legal settlements—including large sums of money that have been dedicated to reducing pollution and compensating car owners. Their painstaking effort also laid the foundation for subsequent investigations that resulted in indictments against Volkswagen executives and a total of $4.3 billion in civil and criminal penalties and fines." Congratulations to these and other award winners, and to the Feds who do great things for us each and every day.

Spousal Rights in the Thrift Savings Plan

From federalbenefitsonline.com

This last story is one that I posted earlier this week on my blog. Most Federal employees that I talk with during benefits briefings are aware that their spouse has a right to receive a survivor annuity from their pension after they’ve passed away. This is a very valuable benefit which most Feds choose to accept at the time they retire. But fewer know that their spouses also have rights to the money in their Thrift Savings Plan (TSP) account. Let’s clarify your spouse’s rights to the money in your TSP.

See you next week. Thanks.

Concerned about retirement readiness? Prepare yourself on your own terms with my comprehensive e-learning course “Understanding Your Federal Benefits”. And if you enroll now, you’ll also receive updated modules for whatever changes Congress may bring our way in 2018. There’s a free trial that gives you the course introduction and first module at no charge. Give it a look

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Issue 38-17