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[TSPStrategy] The best dates to retire in 2025

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The best dates to retire in 2025

Your annual guide to choosing an optimal day to start the next phase of your life.

September 26, 2024

Tammy Flanagan

Retirement Counseling and Training www.retirefederal.com

Download the Best Dates to Retire Calendar

It's finally here! You are old enough and have enough service to retire. You have also determined that you can afford to retire! Now, all that is left to determine is the best date to retire. This is item #2 in Section B of the retirement application. All you have to do is insert your date of final separation… also known as your retirement date!

SF 3107 Application for Immediate Retirement (FERS)

SF 2801 Application for Immediate Retirement (CSRS)

Voluntary (CSRS, CSRS Offset, and FERS) retirement benefits commence the first day of the month after you separate from service if you have met the age and service requirements. Of course, the last day of each month is seldom at the end of the week, or the end of a leave period for that matter, but regardless of which day of the week the last day of the month falls on, you will receive credit for each day through close of business of the day you make your retirement effective (even if it is a holiday).

Example: James is planning to retire on Sat., May 31, 2026 (or Fri., May 30, 2026), after 24 years of service at age 60. This is the end of leave period 10. Although James will reach his 60th birthday on May 14, he will wait to retire until the last day of May so that he will receive his salary through May 31. His retirement won't commence until June 1 regardless of whether he retires on May 14 or May 31. James will be paid his full biweekly salary for leave period 10 and he will accrue his final leave accrual for this period (8 hours of annual leave and 4 hours of sick leave). His first monthly retirement benefit payment will be for the month of June with the payment due on July 1.

Here is a calendar to help you plan your best date for 2025 retirement.

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[TSPStrategy] Federal workers will see the largest increase to their health care premiums in recent memory next year

https://www.govexec.com/pay-benefits/2024/09/best-dates-retire-2025/399374/

Federal workers will see the largest increase to their health care premiums in recent memory next year

In a year where insurers have expanded coverage for multiple medical treatments, federal employees will see their Federal Employees Health Benefits Program premiums increase by an average of 13.5% in 2025.

September 26, 2024

Erich Wagner

Federal employees and retirees will pay an average of 13.5% for more on their health care premiums in 2025, a figure that is nearly double last year's increase and marks the largest price hike in recent memory.

The government's share of Federal Employees Health Benefits Program premiums will increase by an average of 10.01%, bringing the overall premium increase to 11.2%. In 2024, civilian federal employees were estimated to pay an average of 7.7.% more on premiums than the previous year, a slight decrease from the 8.7% rate hike in 2023, the largest the program had seen in a decade.

On average, federal workers enrolled in "self-only" plans will pay an additional $16.24 per biweekly pay period, while feds in "self plus one" insurance plans will pay $33.73 more per pay period. Employees enrolled in family coverage will pay an average of $26.10 more per pay period next year.

Under the Federal Employees Dental and Vision Insurance Program, the average premium for dental plans will increase by 2.97%, while vision plans will increase by an average of 0.87%.

2025 marks the first year of the Postal Service Health Benefits Program, which replaces the U.S. Postal Service's previous health insurance offerings—as well as the mandate to prefund future retirees' health benefits. As part of the shift to the new program, USPS employees will see their portions of premiums increase by an average of 11.1% next year, while the government's portion will increase by 5.1% on average.

On a biweekly pay period basis, Postal Service workers enrolled in "self-only" plans will see their premiums increase by $10.04 in 2025, while those in "self plus one" plans will increase $29.93 on average per pay period. USPS employees enrolled in family insurance coverage will see their premiums increase by $30.68 on average next year.

The FEHBP and PSHBP's annual open season, in which federal and postal employees can choose from a variety of regional and national insurance carriers and coverage plans, will run from Nov. 11 through Dec. 9. Among the drivers of this year's premium increases are price increases from both providers and suppliers, increased use of some prescription drugs and increased behavioral health spending.

OPM and the White House on Wednesday announced that beginning next year, multiple national—and often several regional—FEHBP and PSHBP insurance carriers offer comprehensive IVF coverage to the tune of $25,000 or more. Also new in 2025 are requirements that all FEHB carriers cover at least GLP-1 class anti-obesity drug, such as Ozempic or Wegovy, for weight loss treatments, alongside two additional oral anti-obesity drugs. Carriers must also offer "comprehensive behavioral therapy," including diet and exercise regimens, to those prescribed those drugs.

Wednesday's announcement that OPM had negotiated expanded fertility coverage came as welcome news to federal employee groups and Democrats in Congress, who have been lobbying for expanded access to IVF after the Alabama Supreme Court briefly banned the treatment last spring.

"I applaud the Biden-Harris administration for taking this decisive action that I've called for to ensure all federal employees have access to IVF coverage—because everyone deserves the ability to access the fertility treatment they need to build their families, no matter where they live," said Sen. Tammy Duckworth, D-Ill. "While this is welcome news, any future president could reverse this decision—so it's critical we permanently protect and expand access to IVF nationwide and ensure no patient or doctor is criminalized simply for trying to start or grow their family."

"In 2025, every FEHB enrollee, regardless of where they live and work, will be able to choose from multiple nationwide plans that offer comprehensive IVF coverage," said Rep. Gerry Connolly, D-Va. "Additionally, every FEHB plan will be required to cover the prescription drugs required for three cycles of IVF annually, ensuring every enrollee in the country is able to choose a plan with fertility coverage. Providing federal employees with options to start and grow their families will in turn help the government recruit and retain the federal workforce of the future."

Stacey Young, president of the Department of Justice Gender Equality Network, an employee association made up of nearly 2,000 employees at the Justice Department that has been on the forefront of lobbying OPM to require additional fertility coverage from insurers, said 2025's additions will help retain a highly qualified and diverse workforce.

"President Biden, Vice President Harris, and OPM have again shown their commitment to federal employees' reproductive healthcare needs," she said. "Many DOJ GEN members, like countless workers across the federal government, have endured hardships without adequate IVF coverage. We expect that the expansion of access in 2025 will provide many more of our nation's public servants with the ability to grow their families, and to do so without extreme financial struggles."

But the rate increase is a bitter pill to swallow for other employee groups, particularly given the 2% average pay raise feds are slated to receive in January.

"This is the highest health insurance premium increase in more than two decades and will stretch employees' paychecks beyond what they can afford," said Doreen Greenwald, national president of the National Treasury Employees Union. "I call on President Biden and Congress to take immediate action on providing federal employees with an average 7.4% increase as called for by the FAIR Act."

William Shackelford, national president of the National Active and Retired Federal Employees Association, urged federal employees and retirees to look closely at their coverage options during this year's open season.

"These increases are unwelcome news that will no doubt cause sticker shock for federal and postal employees and retirees across the country," he said. "But that sticker price may not be what you pay if you compare plans and shop for a more affordable alternative. All FEHB and PSHB plans offer comprehensive coverage, so it's difficult to make a bad choice. But you can leave money on the table if you don't compare costs and options."

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[TSPStrategy] Why do employees want to be feds? Benefits are a big reason

https://www.govexec.com/pay-benefits/2024/09/why-do-employees-want-work-federal-government-benefits-are-big-reason/399756/?oref=govexec_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Today:%20Sept.%2026%2C%202024&utm_term=newsletter_ge_today

Why do employees want to be feds? Benefits are a big reason

In a 2023 OPM survey, 90% or more of federal employees said that the availability of health and retirement benefits are important to them.

September 25, 2024

Sean Michael Newhouse

Staff Reporter

Health and retirement benefits are a key reason why employees join and stay with the federal government, according to survey data released last week by the Office of Personnel Management.

Specifically, more than two-thirds of those surveyed said that the availability of Federal Employees Health Benefits, the Thrift Savings Plan and the retirement annuity greatly or moderately influenced their decision to take a federal job. Similarly, more than three-quarters of employees reported that the trio of benefit programs influenced their decision to remain in a government job.

"It is clear that these major benefit programs have an impact on both recruiting and retaining talent in the federal government, making it critical to continuously improve these benefits to meet employee needs," the report authors wrote.

Approximately 20,600 federal workers in 2023 completed the Federal Employee Benefits Survey, which OPM conducts every other year. The agency weighted the resulting data to ensure it is representative of the overall federal workforce.

Ninety percent or more of respondents said that the availability of TSP, the retirement annuity, retiree health benefits and FEHB were important or extremely important to them.

Likewise, 94% reported that FEHB meets their needs to a great or moderate extent while 90% said the same for TSP. Regarding value ratings, 66% responded that FEHB was an excellent or good value and 82% agreed for TSP.

The report also noted that, of federal employees who reported that paid parental leave greatly influenced their decision to accept a federal job, 68% were in the millennial or Gen Z groups.

"The Biden-Harris administration has strengthened benefits for our employees and their families and this year's FEBS is a positive sign we're on the right track," said OPM Acting Director Rob Shriver in a statement. "At OPM, we will continue to support all of our workers, ensuring the federal government remains a model employer to attract and retain the nation's top talent."

More respondents said they did not know if they were enrolled in the Federal Long Term Care Insurance Program, 21%, than reported that they were a participant, 9%. The program helps pay for care costs when enrollees, such as those with Alzheimer's disease, need assistance with everyday activities.

Applications for coverage under the program were suspended in late 2022, but interestingly 51% of employees, a 10% increase from 2021, said the program's availability was important or extremely important to them.

Other notable findings include:

63% of respondents agreed that additional fertility benefits should be provided through private companies at a discounted rate if their FEHB plan doesn't adequately cover their needs. Congressional Democrats have been pushing to expand federal employee access to in vitro fertilization and other assisted reproductive technologies.
79% said they were not aware that FEHB plans cover prescription medications to treat obesity, a requirement that took effect in 2023.
72% of employees who reported that they or a family member sought gender-affirming care or services said they were able to receive it. Republicans have increasingly tried to restrict access to gender-affirming care, particularly for teenagers.

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[TSPStrategy] Medicare quiz for federal retirees

https://www.govexec.com/pay-benefits/2024/09/medicare-quiz-federal-retirees/399673/?oref=govexec_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Today:%20Sept.%2020%2C%202024&utm_term=newsletter_ge_today

Medicare quiz for federal retirees

Wondering why you need Medicare if you have lifetime health insurance coverage under the Federal Employees Health Benefits program? This quiz may help.

September 19, 2024

Tammy Flanagan

Retirement Counseling and Training www.retirefederal.com

One of the questions I am asked most often is, "Why do I need Medicare if I already have lifetime health insurance coverage under the Federal Employees Health Benefits program?" For some retirees, the answer is, "It's required." This includes:

Military retirees must enroll in Medicare Parts A and B to be eligible for Tricare for Life (TFL). TFL is "Medicare-wraparound" coverage. There are no enrollment fees, but you must pay Medicare Part A and Medicare Part B monthly premiums. Federal retirees may suspend FEHB coverage and premium payments at any time. Visit www.opm.gov/forms to get a Health Benefits Cancellation/Suspension Confirmation form (RI 79-9). You can learn more about TFL here: https://www.tricare.mil/Publications/Handbooks/tricare_for_life
Postal retirees who retire after Jan. 1, 2025, and are younger than age 64 on that date, are required to enroll in Medicare Part B when they become eligible to keep their health insurance coverage under the new Postal Service Health Benefits Program. These employees' family members are also required to enroll in Medicare Part B when they become eligible for Medicare. You can learn more about the new PSHB program here: https://www.opm.gov/healthcare-insurance/pshb/

For other federal employees, the decision to enroll in Medicare is optional. To test your understanding of the coordination of Medicare and FEHB, here are 10 True or False questions. You will find the answers at the end.

True/False Some FEHB plans will give money back to enrollees for paying the Medicare Part B premium.
True/False All FEHB plans waive their cost-sharing (deductible, copayments, and coinsurance) when Medicare is the primary payer.
True/False Medicare Part B will cover drugs that are administered by a health care provider, or through medical equipment at home such as drugs that are injected or infused.
True/False Many FEHB plans offer a Medicare Advantage option to plan enrollees. You'll continue to pay your Part B premium with the Medicare Advantage plan. It provides the same coverage as Original Medicare but with additional benefits you wouldn't get, such as $0 deductible and excellent prescription benefits. Plus, many of these plans will reduce your Medicare Part B premium by $100 or more per month. You may also get access to programs that may help you reach your health potential, such as SilverSneakers® fitness membership and more.
True/False Federal retirees who cancel their FEHB coverage to enroll in Medicare Parts A and B can later reenroll.
True/False Another name for Medicare Advantage Plans is Medicare Part C.
True/False Retirees who choose not to enroll in Medicare Part B at age 65 or at retirement (if later), can enroll at a later age without incurring a late enrollment penalty.
True/False Employees who retire after age 65 may delay Medicare Part B enrollment without incurring a late enrollment penalty during a Special Enrollment Period that lasts eight months after retirement.
True/False To find the best FEHB plan to enroll in when Medicare is the primary payer, you should choose one with the most expensive premiums.
True/False Starting in 2024, some FEHB plans have enrolled retirees who have Medicare Part A and/or Part B in a Part D, Medicare Prescription Drug Program (MPDP).

Answer Key:

True. As an incentive to enroll in Medicare Part B, some FEHB plans offer a partial rebate for Part B premiums or a health fund to use to pay some of the premium. These rebates vary from plan to plan but are often between $800 - $1,000 / year per individual enrolled in Part B.
False. Check Section 9 of your FEHB plan brochure or your FEHB plan website to learn which of the provider's plans coordinate best with Medicare Part A & Part B.
True. The key difference between drugs covered under Medicare Part B and Part D is that Part B generally covers drugs that require administration by a healthcare provider, like injections given in a doctor's office, while Part D covers most prescription drugs that can be self-administered at home, like pills or inhalers you take yourself; essentially, Part B covers drugs usually administered during a medical service, while Part D covers most standard prescription drugs you buy at a pharmacy.
True. Many FEHB carriers have introduced a Group Medicare Advantage Plan for their members. This provides a choice and value to members through new plan options. Once enrolled in the Medicare Advantage option, there will be the benefits of your original Medicare plan (Parts A and B), with prescription drug coverage (Part D) and additional benefits and features for no additional premium.
False. If you are a federal retiree who continued your FEHB coverage and you decide to cancel your FEHB enrollment, you should be aware of the consequences. You CANNOT re-enroll in the FEHB Program; it is a one-way ticket out of the program. The only exception is if you are canceling your enrollment be covered under your spouse's FEHB enrollment. You and your enrolled family members will not be eligible to enroll in temporary continuation of coverage or convert to a nongroup contract; in addition, the 31-day extension of coverage does not apply to cancelled enrollments.
True. "Medicare Part C" and "Medicare Advantage" are the same thing; they both refer to a type of health plan offered by private companies that provides coverage like Original Medicare (Parts A and B) and they often include additional benefits like prescription drug coverage (Part D) and sometimes dental or vision care. You may suspend your FEHB coverage to enroll in a Medicare Advantage plan using the medicare.gov plan finder or you can remain enrolled in your FEHB plan while enrolled in a Medicare Advantage Plan. Some FEHB plans offer this coverage as an enhanced benefit of the FEHB plan, or you may enroll in a "commercial" Medicare Advantage Plan through https://www.medicare.gov/plan-compare/#/?year=2024&lang=en
False. If you did not enroll for Part B during your initial enrollment period (IEP) which began three months before you reached age 65, the month of your birthday, and three months after your birthday, you may qualify for a Special Enrollment Period (SEP) to sign up for Part B anytime as long as you or your spouse is working and you're covered by a group health plan through that employment.
True. For federal employees who are covered by FEHB through their current employment (or their spouse's current employment), there is an 8-month SEP which starts the month after your employment ends. If you sign up during an SEP, the late enrollment penalty will not apply. Other than your IEP or SEP, you can only sign up for Part B during the General Enrollment Period (GEP), which runs from January 1 to March 31 each year. Your coverage will begin the first of the month following the month you enrolled during the GEP. You will pay a permanent penalty equal to 10 percent of the standard Part B premium for every 12-month period that you could have been enrolled in Part B but weren't.
False. The premium cost of the FEHB plan is not the only factor that determines the quality of the plan as some of the best plans that coordinate benefits with Medicare are among the least expensive. While it is true that some of the least expensive plans provide more "basic" coverage with higher cost sharing, many plans that work very well with Medicare are low-cost plans such as the following plan options as well as many HMOs that are specific to your area (premiums listed below are 2024 rates; 2025 rates will be available closer to open season):
1. BC/BS Basic, $ (Plan Code) $207.44 (111), $568.96 (112), $517.03 (113)
2. APWU High Option, $ (Plan Code) $269.79 (472), $658.77 (472), and $530.73 (473)
3. Aetna Direct, $ (Plan Code) $160.80 (N61), $405.51 (N62), $352.64 (N63)
4. Aetna Medicare Advantage, $ (Plan Code) $125.00 (Z24), $331.25 (Z25), $275.00 (Z26)
5. GEHA Standard Option $ (Plan Code) $151.99 (314), $403.76 (315), $326.79 (316)
6. GEHA High Option, $ (Plan Code) $235.41 (311), $663.56 (312), $540.95 (313)
7. MHBP Standard Option, $ (Plan Code) $174.65 (454), $405.88 (455), $402.01 (456)
8. Foreign Service Benefit Plan, $ (Plan Code) $179.01 (401), $442.83 (402), $457.82 (403)
9. Compass Rose Standard Option, $ (Plan Code) $114.55 (424), $274.92 (425), $252.00 (426)
10. NALC High, $ (Plan Code) $237.05 (321), $480.54 (322), $554.36 (323)
11. SAMBA Standard $(Plan Code) $185.03 (444), $422.13 (445), $398.24 (446)

True. The Inflation Reduction Act of 2022 (Public Law 117-169) made some significant improvements in the cost of prescription drugs under Medicare Part D. As a result of these improvements, the Office of Personnel Management encouraged FEHB carriers to offer Medicare Part D benefits either through Medicare Advantage Group Waiver Plans (MA-PD EGWP) or Prescription Drug Plan (PDP) EGWPs through traditional FEHB plans. For the 2024 plan year, 39 FEHB plans offered this prescription drug benefit.

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[TSPStrategy] The best dates to retire in 2025

https://www.govexec.com/pay-benefits/2024/09/best-dates-retire-2025/399374/?oref=govexec_today_nl&utm_source=Sailthru&utm_medium=email&utm_campaign=GovExec%20Today:%20Sept.%2027%2C%202024&utm_term=newsletter_ge_today

The best dates to retire in 2025

Your annual guide to choosing an optimal day to start the next phase of your life.

[TSPStrategy] Federal workers will see the largest increase to their health care premiums in recent memory next year

Federal workers will see the largest increase to their health care premiums in recent memory next year

In a year where insurers have expanded coverage for multiple medical treatments, federal employees will see their Federal Employees Health Benefits Program premiums increase by an average of 13.5% in 2025.

[TSPStrategy] Why do employees want to be feds? Benefits are a big reason

Why do employees want to be feds? Benefits are a big reason

In a 2023 OPM survey, 90% or more of federal employees said that the availability of health and retirement benefits are important to them.

[TSPStrategy] Medicare quiz for federal retirees

Medicare quiz for federal retirees

Wondering why you need Medicare if you have lifetime health insurance coverage under the Federal Employees Health Benefits program? This quiz may help.

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