Weekend Reading on Your Federal Benefits 44-18.jpg

(for the week of October 27th – November 2nd)

You’re too busy during the week to keep up on all the news around your employee benefits and pay. My weekly summary of the most interesting and relevant news stories could help you and includes my comments and insights.

By the way, if you’ve read something about your employee benefits that you think is important or interesting, share it. 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 for Feds, the IRS releases the 2019 TSP contribution limits, two-factor authentication is coming to your TSP, OPM says the workforce is not our problem in government and tells agencies to get ready for Open Season. Let’s get started.

2019 Contribution Limits Announced for the TSP

From Fedsmith.com

Each year around this time the Internal Revenue Service (IRS) issues new contribution limits along with other numbers that are adjusted because of rules that take into account adjustments for inflation in their formulas. The annual contribution limit for your Thrift Savings Plan (TSP) contributions is increasing from $18,500 this year to $19,000 in 2019, a 2.7% increase. The catch-up contribution for those age 50 and older remains unchanged at $6,000. This means it will be possible for employees nearing retirement to contribute as much as $25,000 in 2019 toward retirement. And in addition to putting all that money into your retirement savings, you might even bump yourself down into a lower tax bracket.

The IRS also announced increases in the limit for Individual Retirement Accounts (IRAs) to $6,000 up from $5,500 last year. The catch-up contribution for IRAs remains at $1,000 for those age 50 and older. Ian Smith’s article at Fedsmith.com includes more information about Roth IRA limits, phase-out ranges for deductions, and even information about the Saver’s Credit. Check it out to prepare your savings plans for the new year.

2-Factor Authentication is Coming for TSP Participants, Agency Says

From Federalnewsnetwork.com

Your Thrift Savings Plan is going to get safer. No, I don’t mean the accounts that your money is invested in (how much safer could the G Fund get anyway?). I’m referring to the security of accessing your account. The Federal Retirement Thrift Investment Board, the agency that administers the TSP, is implementing two-factor authentication for participants who access their online accounts. It’s expected to be in place by the end of next September. This should help to prevent hackers from getting into your account.

You’ve likely encountered two-factor authentication with other types of online accounts, maybe your bank or credit cards for example. You get a text sent to your phone that requires you to enter a string of numbers into the website to authenticate that it’s really you. Most folks these days don’t have much of a problem with this, although the extra steps can be annoying. But, tighter security is important. You may remember that personal information for 123,000 TSP participants was exposed through one of the board’s contractors back in 2012.

With the addition of a new chief information security officer hired in June and an audit and compliance branch chief brought on board in September, you can rest assured the TSP board is moving toward helping to make sure your money stays in your account until YOU decide it’s time to take it out-- not the hackers.

The Workforce is Not Our Problem in Government

From ChiefHRO.com

This week Jeff Neal at chiefhro.com comments on an interview that Francis Rose conducted with Acting Office of Personnel Management (OPM) Director (and Office of Management and Budget Deputy Director for Management) Margaret Weichert on Government Matters TV. (If you’d like to watch the interview, it’s about 13 minutes in length and is available at this link.)

Jeff finds it reassuring that Ms. Weichert believes that Federal workers are not the source of the government’s problems and identified Feds as part of the solution. He backs up his claim with data from the recently released 2018 Federal Employee Viewpoint Survey (FEVS) Governmentwide Management Report which showed that 91% of Federal workers are looking for ways to do their jobs better and 96% are willing to put in extra effort to get their job done.

The real issue that Feds who just want to ‘get the job done’ have can be found in other data from the FEVS survey. Only 38% of Federal employees believe performance is recognized in a meaningful way, and a dismal 32% believe their agencies take steps to deal with poor performers. Drops in staffing have caused many employees to have to perform their job and the job of someone who was cut. It would certainly help if those Feds who have ‘stepped up’ to keep things moving could be recognized (with cash) for their dedication. And if Feds could be rewarded appropriately, we may also see an increase in creativity and innovation, which is certainly needed in many places. We’ve been hearing about performance-based pay for some time now, and those employees who work hard (the majority of you) would certainly welcome this change.

Prepare for Open Season, OPM Tells Agencies

From Fedweek.com

This week the Office of Personnel Management (OPM) sent agencies its annual instructions to help them prepare for Open Season (coming November 12 – December 10). There are four health plans that will be dropped from the Federal Employees Health Benefits (FEHB) program, eight plans are reducing their service areas, and nine programs are eliminating some options. If your plan is affected, you should receive a letter directly from your health carrier, but OPM also told agencies to distribute the list of changes to their employees.

For plans dropping out, enrollees who don’t elect a different plan will be automatically enrolled in a new offering from Blue Cross and Blue Shield, FEP Blue Focus, which will be the lowest-cost nationwide plan available. That plan is the only new national offering (although an HMO covering parts of Colorado is also being added). Seven regional plans will offer new options—three of them high-deductible options—and 16 plans will expand their service areas.

Even if there aren’t any changes happening to your plan, it’s a good idea to review your plan to make sure that the benefits provided will help you to protect yourself and your family and minimize your out-of-pocket costs. I always recommend that you take some time to review your health issues and expenditures from the current year, and do your best to anticipate any new medications, procedures, or other health needs for the coming year. Yes, once a year it’s a bit of a hassle, but a little planning could save you money.

See you next week. Thanks!

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