Overview Of Federal Employee Benefits

Employees of the federal government receive some of the highest perks in the business world. To mention just a few, the options range from a Thrift Savings Plan to life and health insurance to a full retirement savings and pension plan.

Even if you have worked for the federal government for a long time, it’s a good idea to take a few minutes to read the overview of federal employee benefits.

Let’s have a look at the perks alphabetically, shall we?

Annual leave

Annual leave is accumulated pay-period-by-pay-period and can be utilized for vacation, leisure, relaxation, and personal affairs. The accrual rate is determined by the number of years you have worked as a federal employee and whether you work full-time or part-time.

This means that full-time federal employees with less than 3 years of service earn 4 hours for every 20 hours worked, i.e., 13 days per year, those with 3 to 15 years of service earn 6 hours for every 20 hours worked, i.e., 20 days per year, and finally, those with more than 15 years of service earn 8 hours for every 20 hours worked, i.e., 26 days per year. 

Part-time federal employees, on the other hand, have fewer annual leave days. Those with less than 3 years of service earn 1 hour for every 20 hours worked, those with 3 to 15 years of service earn 1 hour for every 13 hours worked, and those with 15 years of service or more earn 1 hour for every 10 hours worked.

Federal Employee Dental and Vision Insurance Program

The Federal Employee Dental and Vision Insurance Program, or FEDVIP, offers enrollee-pay-all dental and vision care to federal employees and their dependent family members. Your partner and unmarried dependent children under the age of 22 are eligible family members. Employees can sign up for a dental and/or vision plan. The amount of the premium is deducted from the employee’s salary before taxes are applied. 

Federal Employee Group Life Insurance 

FEGLI provides group life insurance for you, your spouse, and your dependent children under the age of 22 through this program. When a new federal employee qualifies for FEGLI, they are immediately enrolled in basic life insurance, with the option to acquire extra coverage.

Federal Employees Health Benefit Program

There are 200 different plans available to federal employees and retirees via the Federal Employees Health Benefits Program (FEHBP), making it easy for everyone to select something that works for them and their families. In order to join in any government health plan, there are no waiting periods or medical examinations, and there are no limits based on age or physical condition. In addition, the federal program offers a guarantee of coverage, making it impossible for health insurers to discontinue it. The majority of health care expenditures are paid for by the federal government, which typically covers 70% to 75% of the costs.

Federal Holidays

Every year, federal employees are given 11 paid holiday days: New Year’s Day, Martin Luther King’s Birthday, Washington’s Birthday, Memorial Day, Juneteenth National Independence Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

Federal Long-Term Care Insurance Plan

With this sort of coverage, long-term care insurance can help cover the costs of daily living support or care if you have significant cognitive impairment. Employees of the federal government and their qualifying family members may apply for this position. The simplified underwriting method allows newly recruited employees and their partners 60 days to apply.

Flexible Spending Accounts (FSA)

In order to save money for unexpected expenses, federal employees can use flexible spending accounts to set aside a percentage of their pre-tax salaries. Employees in the federal government can save up to $2,850 a year through the Health Care Flexible Spending Account. For expenditures not covered by FEHBP, like over-the-counter medication or health insurance premiums, these funds can be used.

Retirement

As part of the Federal Employees Retirement System, or FERS, the government offers employees with a retirement benefits package that consists of three separate contributions: the Basic Benefit Plan, the Thrift Savings Plan, and the Social Security benefit.

Employees contribute a little amount each pay period, and their employer contributes 1% of their yearly salary to the Basic Benefit Plan. In addition, partners and children can get long-term disability and survivor payments under this strategy. Employees must have worked in the government for at least five years in order to qualify for the Basic Benefit Plan’s retirement benefits.

The Thrift Savings Plan, or TSP, is comparable to a standard 401(k) plan in terms of benefits. Employees who do not contribute 1 percent of their wages are nevertheless covered by the contributions of the agencies. Additionally, companies will match up to five percent of employee contributions each pay period.

Social Security assists those who are retired, jobless, or disabled, as well as those who are unable to work and those who are unable to provide for their families. Employees of the federal government are required to pay Social Security taxes and accrue benefits in their Social Security accounts as a result of this.

Sick leave

Personal medical requirements, family care, or bereavement, care for a family member with a significant health condition, or adoption-related causes can all be utilized for accrued sick leave. There is a four-hour-per-pay period accrual rate, regardless of how long you’ve worked for the institution. Accumulation of sick leave is unrestricted and does not rise at a higher rate.

Student loan repayment

Loan repayment assistance is available from the federal government in the form of two different programs: the Federal Student Loan Repayment Program and the Public Service Loan Forgiveness Program.

Federal Student Loan Repayment Program participants can receive $10,000 each year, up to a maximum of $60,000, in student loan repayments. Those who accept the offer must commit to a minimum of three years of service.

After completing a minimum of 10 years in a public service position, the government will forgive the remaining balance of qualified student loans under the Public Service Loan Forgiveness Program.

Transportation benefits

Using the Transportation Benefit, you may reduce the expense of getting to and from work each day. The Bicycle Benefits Program provides financial assistance to commuters who use bicycles to get to work. To qualify for the perk, employees must ride a bicycle for a significant amount of their commute every day or almost every day. Using the Pre-Tax Parking Benefit Program, employees are able to reduce their payroll taxes by the amount of eligible monthly parking costs they claim.

Conclusion

Federal employees have a wide range of perks, all of which are equally significant. There are so many acronyms that imply so much more than just a collection of letters, so it’s critical that you grasp the significance of each of the above benefits. Also, if you’re just starting out in the federal workforce, be sure to familiarize yourself with all of the current policies and procedures.