fbpx

Common Sense Prevails – Agency Heads Take Control

Posted on Friday, 7th March 2025 by

Print This Post Print This Post
Share

In last week’s article, I said, “DOGE is moving too far and fast, as evidenced by the chaos surrounding it,” and further stated, “They should allow each agency head to work within their organizations to streamline if needed.”

Someone in the administration read my last article! Actually, the President’s cabinet and many others were complaining about the problems encountered with the fast pace of the cuts.

At his second cabinet meeting last week, the President announced that Cabinet secretaries, not Musk, had the final say on staffing and policy at their agencies.

There is still some confusion about whether employees must report their accomplishments weekly. Many agency heads have advised their employees not to reply; others still require a weekly report.

_____________________________________________

__________________________________________

The Path Forward

President Trump and DOGE aren’t taking their foot off the gas; the President is reverting to cruise control to moderate the pace. On Truth Social, the President stated, “It’s very important that we cut levels down to where they should be, but it’s also important to keep the best and most productive people.” His cabinet will meet every two weeks to manage this transformation.

The cabinet heads are now fully engaged in streamlining their organizations and determining what needs to be done to reduce fraud, waste, and abuse.

The Secretaries will work with agencies and intend to be precise about who remains and who will go. The President indicated, “We say the ‘scalpel’ rather than ‘hatchet.’ The combination of them, Elon, DOGE, and other great people will be able to do things at a historic level.”

The Next 7 Months

OPM published comprehensive guidance on February 26, 2025, directing agencies to develop comprehensive Agency RIFs and Reorganization Plans (ARRPs). All agencies must develop phase 1 plans by March 13, 2025. These plans are intended to improve services, increase productivity, and reduce unnecessary positions, real property, and expenditures wherever possible.

Phase 2 plans must be submitted for review and approval by April 14, 2025, and implemented by September 30, 2025. These plans cover 17 major areas, including consolidations, preparation for RIFs, establishment of new organizational charts, technology improvements, and much more.

Conclusion

A lot will happen over the next few months in the federal sector. Changes are coming at lightning speed compared to how they took place in the past. This President is committed to rightsizing the federal sector, organizing operations to provide their intended services efficiently, reduce office space wherever possible, and eliminating wasteful spending.

Full implementation of the ARRPs is expected to begin this September, sooner once the new budget is approved and funds are available. However, many initiatives will take much longer to accomplish when you factor in employee relocations, downsizing leased space, establishing centralized offices, hiring the right mix of talent for locations, and auctioning off excess property.

Anyone anticipating being impacted from potential RIFs can explore their options to prepare for what may come their way. You should also work closely with your HR office to determine what is available based on your personal situation.

Additional information – DOGE and federal downsizing:

Helpful Retirement Planning Tools

Federal employees and recent retirees with security clearances can
search thousands of high-paying defense and government contractor jobs.

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)| Print This Post Print This Post

(NEW) OPM Requesting Weekly Email Accomplishments!

Posted on Saturday, 1st March 2025 by

Print This Post Print This Post
Share

Two million federal employees received another email from OPM Friday evening requesting they reply with a list of last week’s accomplishments. The email states, “Going forward, please complete the above task each week by Mondays at 11:59 p.m. ET.”

After reviewing the first memo, many agencies advised their staff not to reply; they handle these requests in their own way. This includes the FBI, the Justice Department, the State Department, the Pentagon, the Department of Energy, the Department of Homeland Security, and the Office of the Director of National Intelligence.

Other departments advised employees to reply to the memo, continuing the flurry of activity across the federal sector. Most don’t know what to expect over the coming months.

The New Memo

This memo was sent out on Friday evening:

“From: HR <hr@opm.gov>

Sent: Friday, February 28, 2025 8:45 PM

Subject: [EXTERNAL] What did you do last week? Part II

Importance: High

Please reply to this email with approx. 5 bullets describing what you accomplished last week and cc your manager.

Going forward, please complete the above task each week by Mondays at 11:59 pm ET.

Please do not send links, attachments, or any classified/sensitive information. If all of your activities are classified or sensitive, please write ‘All of my activities are sensitive’.”

The White House said that approximately a million of the federal government’s over 2.3 million employees replied to the first email asking for five bullet points highlighting last week’s accomplishments.

Summary

DOGE is moving too far and fast, as evident by the chaos surrounding it. They are insensitive to the federal employees losing their jobs and discount the many federal workers who do outstanding jobs every day. Federal services touch all of our lives in one way or another.

I don’t see how this is helping matters. They should allow each Agency Head to work within their organizations to streamline if needed. They made their point on their first accomplishment request, which should have been enough.

Several employees I talked to already submitted the bullets for last week and didn’t stop at 5; many listed more, emphasizing the many things they are tasked to do weekly. Federal employees are often expected to multitask, participate in work groups, attend meetings, and take on collateral duties. I would send a laundry list of accomplishments and include the things your supervisor may not be unaware of.

Keep a hard copy of every email you send, highlight major accomplishments on each copy, and take the emails with you to your annual performance review. This could support an outstanding rating or a Quality Within Grade (QWI).

All reorganizations are disruptive, former President Clinton did it in the late 1990s using the Voluntary Early Retirement Authority (VERA), with an accompanying $25,000 Voluntary Separation Incentive Payment (VSIP). RIFS are typically used as a last resort.

The administration must lower the temperature and realize that its actions disrupt many lives. Federal employees aren’t the root of the problem; it’s out-of-control spending and the lack of oversight by Congress.

Additional information – DOGE and federal downsizing:

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , , , , , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (0)| Print This Post Print This Post

Dissecting DOGE – Purpose & Process Explained

Posted on Friday, 28th February 2025 by

Print This Post Print This Post
Share

The Department of Government Efficiency (DOGE) was established by Executive Order (EO) 14158 on January 20, 2025. The EO aims to “establish the Department of Government Efficiency to implement the President’s DOGE Agenda by modernizing Federal technology and software to maximize governmental efficiency and productivity.”

DOGE is a temporary organization headed by the United States DOGE Service (USDS) Administrator and dedicated to advancing the President’s DOGE agenda. The U.S. DOGE Service Organization terminates on July 4, 2026.

DOGE Teams

In consultation with USDS, each Agency Head has established within their Agency a DOGE Team of at least four employees, which may include Special Government Employees, hired or assigned within thirty days of the date of January 20, 2025.

Each DOGE Team typically includes one DOGE Team Lead, one engineer, one human resource specialist, and one attorney. Agency Heads must ensure that DOGE Team Leads coordinate their work with USDS and advise their respective Agency Heads on implementing President Trump’s DOGE Agenda.

Primary Focus

DOGE’s Software Modernization Initiative is intended to improve the quality and efficiency of government-wide software, network infrastructure, and information technology (IT) systems. The DOGE teams, in concert with the Administrator, will work with Agency Heads to promote interoperability between agency networks and systems, ensure data integrity, and facilitate responsible data collection and synchronization.

The teams evaluate agency software and data systems for potential problems and disconnects. They don’t have access to make changes.

During a recent TV interview, Elon Musk stated that one of his primary objectives is to ensure the implementation of the President’s Executive Orders.

Major government-wide software and network infrastructure changes won’t happen overnight; years of planning, congressionally approved funds, and competitive contracts are required. You don’t turn a cruise ship on a dime. The initiative is to get the ball rolling over this 18-month period, and our politicians must keep it on track.

The implementation phase addresses fraud, waste, and abuse.

Implementation

A second Executive Order dated February 11, 2025, covers the implementation of The President’s “Department of Government Efficiency” Workforce Optimization Initiative. Its purpose is to “restore accountability to the American public; this order commences a critical transformation of the Federal bureaucracy by eliminating waste, bloat, and insularity.”

No agency appears to be excluded from DOGE’s reach, from USAID to the Department of Defense, Treasury, VA, DOT, and others. The President’s new cabinet will initiate deeper dives into each agency as they sift through the recommendations presented by these teams.

They seek ways to cut spending, reduce regulations, right-size the workforce, and modernize federal technology and software to maximize governmental efficiency and productivity. It is a tall task for any organization.

Federal employees and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Historical Perspective

During my 35 years of federal service, I went through numerous reorganizations. President Clinton’s administration eliminated hundreds of thousands of positions through the Voluntary Early Retirement Authority (VERA), often with an accompanying $25,000 Voluntary Separation Incentive Payment (VSIP) and Reduction in Force (RIF) proceedings.

President Clinton’s National Performance Review leader, Elaine Karmarck, testified in early 2000 before the House Committee on Oversight and Government Reform that 426,200 federal jobs were cut during President Clinton’s tenure.

The Office of Personnel Management (OPM) reported total federal civilian employment at the beginning of President Clinton’s term as 2,225,000. By the end of his term in 2000, it had decreased to 1,778,000, a 20% drop.

Current Administration Cuts

At the beginning of President Trump’s second term, federal civilian employment exceeded 2,300,000. This is May 2024 data released by OPM; additional hiring took place in the last half of 2024, and this data isn’t currently available.

The Trump administration’s first step in reducing the workforce was to offer deferred resignations to those who did not wish to return to the workplace. Approximately 75,000 accepted this offer, which provided a generous severance package of up to 9 months of full pay with benefits without a requirement to return to work. This was challenged in court. However, Judge George O’Toole lifted the restraining order on February 12.

The Future of Federal Telework: New Rules, and What Comes Next in the Return to In-person Work

Many probationary workers with less than one year of service were laid off shortly thereafter. According to OPM’s FedScope, about 218,000 federal workers have less than a year on the job, representing about 9% of the government workforce. Not all probationary employees will be automatically fired; those in critical or essential positions may be retained.

Their next logical step is to offer VERA and VSIP packages for positions that are being eliminated. Funds must be approved for this to proceed. RIFs could also be used; they require the government to provide a 60-day advance notice of a layoff.

I believe the administration is targeting at least a 20 percent drop in the onboard full-time equivalent positions, similar to what former President Clinton accomplished during his administration. The difference is that Clinton had 8 years to achieve this, and President Trump has just under 4 years to accomplish the same thing.

The Employee’s Plight

For many federal employees, their anxiety is overwhelming, to say the least. Federal jobs are believed to be among the most secure, and for the most part, they are.

I know how they feel. Many military installations were shuttered or downsized shortly after the Vietnam War ended. I had recently relocated to a federal civil service position at an Air National Guard base in Pittsburgh.

All civilian employees received a notice of a pending RIF shortly after I reported to work; one of the units was being decommissioned. I didn’t look forward to going home to my wife that day and telling her I may lose my job. Our son was only one year old, and we had just relocated from Topeka, Kansas, a thousand miles away after the Forbes AFB closed!

New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs

Summary

Elon Musk is in the daily news cycle for his engineering feats and, most recently, for his USDS Administrator duties. His team has purportedly found numerous issues that question how well the government manages our money. They aren’t the only ones.

The U.S. Government Accounting Office (GAO) reported on January 23, 2025, “Since FY 2003, federal agencies have made $2.8 trillion in improper payments—i.e., payments that shouldn’t have been made or were made in incorrect amounts.” When an Inspector General (IG) finds an agency non-compliant, the agency must report its compliance plans to Congress.

The report suggests that reducing fraud and improper payments is critical to safeguarding federal funds. It estimates that between $233 billion and $521 billion is lost to fraud annually within the federal government! This is the government’s GAO report, not DOGE!

We frequently hear that Elon has entered the building and discovered whatever there is to expose. He may have entered, but his teams are the ones finding inconsistencies. They comprise federal workers, including experts Elon Musk knows and trusts.

The DOGE teams post their findings online at www.DOGE.gov as they discover issues that often require further investigation and highlight their progress. For example, they found over 500 million going overseas for various projects that have since been canceled.

There will be many hiccups along the way as they backtrack on certain issues due to moving too far too fast. For instance, they rehired many probationary employees who shouldn’t have been let go.

Time will tell whether this effort bears fruit. They are even talking about a DOGE dividend, possibly a 20 percent rebate to taxpayers of the total saved! I would prefer they apply all the funds to reduce our debt and lower our taxes.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , , , , , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS

Comments (1)| Print This Post Print This Post

Many CSRS Retiree’s Social Security Checks Increasing Soon

Posted on Wednesday, 26th February 2025 by

Print This Post Print This Post
Share

The Social Security Fairness Act repealed the windfall elimination provision and the government pension offset last November, and impacted CSRS retirees are waiting for their Social Security checks to increase.

You are eligible for Social Security benefits if you accrued 40 quarters (10 years) of employment where Social Security payments were withheld. The Windfall Elimination Provision reduced the CSRS Social Security benefits if you had less than 30 years of “substantial” coverage and are collecting a CSRS federal retirement benefit.

 

Payments to Start

The Social Security Administration (SSA) will Start paying retroactive benefits the week of February 24, 2025. This will increase monthly benefit payments to people whose benefits have been affected by the WEP and GPO.

When a beneficiary is due retroactive benefits, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March. This retroactive payment will cover the increase in their benefit amount back to January 2024, when WEP and GPO no longer apply.

Social Security benefits are paid one month behind. Most affected beneficiaries will begin receiving their new monthly benefit amount in April 2025 (for their March 2025 benefit).

What to Expect

Anyone whose monthly benefit is adjusted or who will get a retroactive payment will receive a mailed notice from Social Security explaining the benefit change or retroactive payment.

Beneficiaries may receive two mailed notices: the first when WEP or GPO is removed from their record and the second when their monthly benefit amount is adjusted for their new monthly payment amount. You may receive a retroactive payment before receiving the notice.

In certain complex cases that can’t be processed automatically, SSA must spend additional time manually updating the records and paying both retroactive benefits and the new benefit amount.

Social Security advised those eligible for a refund and increased benefits to wait until April to inquire about the status of their retroactive payment since these payments will be processed incrementally throughout March.

Refunds will vary depending on factors such as the type of Social Security benefit received and the amount of the person’s pension. According to Social Security, “Some people’s benefits will increase very little while others may be eligible for over $1,000 more each month.”

Summary

WEP did not significantly reduce my Social Security benefits because I had 27 years of substantial earnings, primarily through my business. I should receive a letter soon outlining what to expect. The Act applies to benefits you get on your own record (retirement or disability benefits) and to your spouse’s or surviving spouse’s benefits on another person’s record.

SSA published a comprehensive update that addresses most situations; visit their update page for complete information.

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)| Print This Post Print This Post

OPM Requests All Employees Report Accomplishments ASAP!

Posted on Sunday, 23rd February 2025 by

Print This Post Print This Post
Share

All federal employees received an email from OPM on Saturday requesting they reply with a list of last week’s accomplishments. Elon Musk first mentioned this on X, and OPM sent the email shortly thereafter. The deadline to reply is 11:59 p.m. Monday, February 23!

This has created anxiety and a flurry of activity across the entire federal sector, and everyone is on edge. Read the full story about this issue and what to expect over the next few days!

Additional information – DOGE and federal downsizing:

Sign up for a complimentary retirement planning session
and a FREE retirement planning report

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SURVIVOR INFORMATION

Comments (1)| Print This Post Print This Post

Social Security Income Tax Elimination Update

Posted on Thursday, 13th February 2025 by

Print This Post Print This Post
Share

Approximately 50% of retirees pay taxes on their Social Security benefits, compared to less than 10% in 1984!

Thomas Massie (R-KY) reintroduced H.R. 1040, the Senior Citizens Tax Elimination Act. It was referred 02/06/2025 to the House Committee on Ways and Means. This bill assists seniors by eliminating the double tax on Social Security benefits. This bill supports President Trump’s campaign to eliminate this unfair tax for seniors.

Representative Daniel Webster (R-FL) co-sponsored this legislation, stating, “For decades, seniors have paid into Social Security with their tax dollars. Now, when many seniors are on a fixed income and struggling financially, they are being double-taxed because of income taxes on their Social Security benefits.

_____________________________________

__________________________________

As the Congressional Research Service reports, “Before 1984, Social Security benefits were exempt from federal income tax. Congress then enacted legislation to tax a portion of those benefits, with the share gradually increasing as a person’s income rose above a specified income threshold.”

Today, up to 85 percent of a senior’s Social Security benefits are taxable under this draconian law. They should expand this proposal to eliminate the Income Required Monthly Adjustment Amounts (IRMAA) that apply to Medicare Part B and D payments. Why should many seniors pay up to four times more for the same benefit?

If passed, this act would amend the Internal Revenue Code of 1986 to terminate the inclusion of tier I railroad retirement benefits and Social Security benefits in an individual’s gross income starting in 2025 (tax returns filed in early 2026).

New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs

Alternative Proposal

The Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simple Taxes (RETIREES FIRST) Act was introduced by U.S. Senators Roger Marshall and Marsha Blackburn, proposes significant changes to Social Security taxation, promising financial relief for millions of retirees. This proposal dramatically raises the income thresholds as noted below:

  • Raising the provisional income threshold to $34,000 for single filers and $68,000 for married filers. (the provisional income threshold for single fliers is presently $25,000 and $32,000 for married filers)
  • Updating the thresholds annually to prevent bracket creep and protect retirees from inflation’s impact.
  • Simplifying tax rules to maintain a single 85 percent inclusion rate for benefits exceeding the new thresholds, simplifying the filing process, and reducing confusion for seniors.

Summary

These bills are long overdue. They will hopefully be reconciled and make it to the floor for a vote. Both bills require revenue neutrality; other government-wide cuts would make up the difference. With DOGE finding excessive spending, waste, and abuse in other government agencies, there should be more than sufficient funds to compensate for any lost funds.

One reason the WEP and GPO programs were repealed is the tens of thousands of phone calls that constituents made to their representatives. This week, I intend to call mine to express my support for these bills.

The Future of Federal Telework: New Rules, and What Comes Next in the Return to In-person Work

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (0)| Print This Post Print This Post

Medicare Prescription Drug Plan (MPDP) Opt-Out Update

Posted on Friday, 7th February 2025 by

Print This Post Print This Post
Share

Since writing the article “Medicare Prescription Drug Plan Fiasco – The Continuing Saga,” I’ve received over 40 emails and comments from site visitors experiencing the same issues; several are paying considerably more for their prescriptions under the MPDP plan. You can review all of the comments on our blog, they follow the article mentioned above.

This started last November, and many are still waiting for a resolution. We received letters from Social Security last Wednesday stating, “We will no longer deduct your prescription drug coverage income-relate monthly adjustment amount from your monthly benefit.” They are refunding the penalty and Part D premiums we paid in January this month.

Our Medicare online accounts also show that my wife and I do not have a Part D premium being deducted from our Social Security checks.

__________________________________________


____________________________________________

What Caused the Problem?

From my discussions with multiple sources, GEHA enrolled all Medicare-eligible members in the MPDP program even though members initially had until early December to opt out of the program. This caused mass confusion for those wishing to remain with GEHA’s prescription drug coverage, and this triggered actions by Social Security and Medicare to enroll us in Part D.

Many of us filed appeals with Social Security and OPM’s OIG and contacted our representatives. Hopefully, this won’t create more issues as these entities go back and forth between OPM, Medicare, and Social Security.

Initial Contacts and Actions Taken

When I first became aware of the problem, I submitted an appeal to Social Security and, shortly thereafter, filed a complaint with OPM’s OIG. If your issue hasn’t been resolved, use the OIG’s online complaint form to file a complaint regarding fraud, waste, abuse, or mismanagement within OPM’s programs and operations.

The complaint form is the preferred method for submitting a complaint; however, you may also submit your complaint by calling the OPM OIG Hotline Number: 1-877-499-7295.

I also submitted this issue to my senator and Congressman. If you don’t need to register a complaint with them now, write down your representative’s contact information if you need assistance. We elected them, and they are one of our first lines of defense when we have an issue with a federal agency.

GEHA Response or Lack Thereof

My first call was to GEHA, and they forwarded me to one of their prescription drug customer service representatives. As I explained in my first article, they didn’t offer a resolution other than to call Silver Script again.

Medicare’s website showed that my wife and I were scheduled to pay a Medicare Part D premium through December 2025, and Social Security advised us that we had to pay a penalty plus late payment fees for Part D that we didn’t have.

After numerous calls to GEHA without resolution, I requested that GEHA’s public relations office set up an interview with the person responsible for their MPDP option and the opt-out process. They didn’t reply to my email request.

I made one final call to GEHA’s prescription drug customer service representative last week, and she was very helpful and empathetic. She has talked with hundreds in the same situation and assured me that all would be taken care of shortly.

Summary

I intended to write a follow-up article after my wife’s Social Security check arrives on the second Tuesday in February. Many people had asked for an update, so I thought it best to send one out as soon as possible.

It appears that our Part D premium has been canceled. We should know soon if they caught it in time for this February’s checks. Plus, Social Security has to send out a change notice since they notified us on January 3 and again on the 6th that we were enrolled in Medicare Part D and they were withholding premiums and late penalties from our checks.

I really don’t know why mine got changed back to where it should have been from day one. We haven’t received feedback from any of those we contacted.

If your Medicare account still shows Social Security will be withholding Part D premiums, and you opted out of their MPDP program, you may wish to file a complaint with OPM’s OIG and go the same route I did. Possibly make one more call to GEHA; hopefully, you will reach the same very pleasant representative I talked with last week.

Many suggested moving to another provider during the next open season. I’m staying with GEHA, and as I stated in the previous article, they have provided exceptional healthcare services at reasonable costs over the past 11 years.

Hopefully, whoever was responsible for this fiasco is no longer with the company.  Plus, most other FEHB providers already offer MPDPs; you may have the same issues if you change to another company next open season.

The Obligations and Realities of Returning to In-person Work

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , , ,
Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (3)| Print This Post Print This Post

Tax Forms and Annuity Statement Availability

Posted on Friday, 31st January 2025 by

Print This Post Print This Post
Share

The Social Security Administration was the first to send out tax forms again this year. Our 1099 R Tax Forms typically aren’t available by regular mail until late January to early February. Registered users of OPM’s Retirement Services Website can now download their Annuity Statement and 1099 R forms.

Update

My last article on taxable earnings included transposed numbers. The statement should have read, “Higher earners will pay Social Security taxes in 2025 on earnings up to $176,100, an increase from last year’s maximum amount of $168,600.” I corrected this on the blog article.

1099 Forms

I received my SSA-1099 on January 14th and downloaded my 1099-R from OPM in mid-January.  Many of our 1099-INT forms are now arriving from banks and credit unions. TSP has your 1099-R forms available for download by the end of January.

For those who purchased Treasury Bills, Notes, and Bonds online at www.TreasuryDirect.gov or cashed in savings bonds on their site, your 1099-INT and OID statements are now available for download.

If you cash in paper savings bonds at your local bank, the cashier gives you a receipt showing the amount of interest earned. This receipt isn’t your 1099; the bank or other financial institution will send you a 1099-INT for the bonds you cash in.

When selling a home, the closing agent typically provides the seller with a copy of the 1099-S form. This form is sent to the IRS and shows the gross proceeds and any real estate taxes paid in the year of the sale. Any capital gains must be reported on the tax return.

Brokerage Forms

Brokerage firms typically send out their Tax Reporting Statements showing interest, dividends, and capital gains or losses towards the end of January to mid-February, later for more complicated accounts. Their consolidated statements include 1099-INT, DIV, MISC, and a 1099-B for proceeds from broker and barter exchange transactions.

Annuity Statements

Federal annuitants typically receive their updated Annuity Statement in early January, with the COLA increase added.

OPM sends out updated annuity statements anytime a change affects our annuity. We will receive another statement showing FEHB healthcare and FEDVIP premium changes in February. New statements are sent out throughout the year whenever there are changes to checking/savings allotments, income tax withholding, long-term care insurance, etc.

This document provides information on annuities and benefits for you and your family. It includes the annuitant’s Claim number, the amount withheld for each item deducted from your annuity payment, and your gross and net payment. It specifies the monthly survivor annuity currently payable in the event of the annuitant’s death and includes an annual Notice of Survivor Annuity Election Rights. You will also find OPM contact information.

This form provides instructions on how to make benefit elections, such as applying for a survivor election for a spouse you marry after retirement or survivor annuity elections for a former spouse.




Estate Planning

I keep the most current Notice of Annuity Adjustment in my retirement folder and include a copy in our estate binder along with OPM’s annuity and FEGLI insurance verification forms that OPM sends out upon request. You can also download these forms from OPM’s site. This is an important document and should be readily available if you or your survivor need to contact OPM or require benefit clarifications.

You must be registered to use OPM’s Retirement Services Website. If you aren’t registered, read the article “Connect to OPM’s Online Services” to understand the registration process and sign up.

Summary

Many banks and brokerage houses’ 1099 and DIV reports are also available online for download early. Treasury Direct doesn’t send out print copies. You must download your Treasury’s OID and 1099 INT statements from your online account.

I’ve used TurboTax software for decades. It’s intuitive, walks you through the entire process, double-checks your work, and allows you to file online. This software can also download and integrate your brokerage accounts into your tax return, saving considerable data entry time. I purchase a copy of Turbo Tax every December and add tax documents, including 1099s, as they come in to save time.

Several free online filing services are available through the IRS, as well as several tax preparation services. The IRS allows you to file online for free if your annual income is $84,000 or less. You will have to file your State taxes separately.

Turbo Tax offers a free tax filing service for Simple 1040 returns (no schedules except for Earned Income Tax Credit, Child Tax Credit, and Student Loan Interest Credits). Roughly 37% of taxpayers are eligible for this service.

Use OPM’s Online Services to download your 1099-R to file your taxes early, replace a lost 1099-R, or obtain other important retirement forms and reports.

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Disclaimer: The information provided may not cover all aspect of unique or special circumstances, federal regulations, medical procedures, investment, and benefit information are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance including OPM’s retirement center.

Over time, various dynamic economic factors relied upon as a basis for this article may change. The information contained herein should not be considered investment advice and may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

Comments (3)| Print This Post Print This Post

Terms Of Use