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Government Shutdown FACT SHEET

Posted on Saturday, 12th January 2019 by

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OPM issued a FACT SHEET covering the impact on federal employee benefits and pay as a result of the government shutdown. The following excerpt explains the impact on employee’s pay and benefits.

FACT SHEET:  Pay and Benefits Information for Employees Affected by the Lapse in Appropriations

Government Shutdown Briefing

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

This information covers pay and benefits matters that may be important to employees if the lapse in appropriations continues past payroll processing deadlines.  Payroll deadlines vary from agency to agency, so the actual timing of when an employee’s pay and benefits may be impacted will vary. 

This information is only for employees who are:

  • Furloughed (a type of nonpay status), or
  • “Excepted” from furlough (i.e., continuing to work and earn pay, but their pay is delayed until appropriations are authorized). 

Employees who are “exempt” from the lapse in appropriations (e.g., because they are not paid from annually appropriated funds) are not impacted.

What you should know

PAY

Furloughed employees: You cannot receive pay during a lapse in appropriations if you are furloughed, and Congress will determine whether you will receive retroactive pay for furlough hours.

Excepted employees: You are entitled to be paid for hours worked, but you cannot receive pay until funding is provided.

ANNUAL AND SICK LEAVE ACCRUAL

Any leave you had previously scheduled during the lapse period is cancelled, so you won’t be charged leave.  In addition, per OPM guidance, if you had properly scheduled “use-or-lose” annual leave that you weren’t able to use because of the lapse in appropriations, that leave must be restored to you.  Your agency will provide instructions on any action you may need to take.

Furloughed employees: You won’t accrue annual and sick leave during the furlough once you’ve been in a nonpay status for 80 hours (for full-time employees with a regular 80-hour biweekly tour of duty).  Congress may, however, authorize retroactive accrual of leave.

Excepted employees: You will continue to accrue leave, but accrued leave will not be available for use until funding is provided.

RETIREMENT

No retirement deductions will be made if you aren’t receiving pay.  Generally, a period of nonpay status will have no effect on an employee’s retirement-creditable service or high-3 average pay unless the nonpay status is for more than 6 months during the calendar year.

ALLOTMENTS FROM PAY

Since no allotments can be made if you’re not receiving pay, you may want to review your allotments to determine whether you’ll need to make alternative arrangements (e.g., if you are using allotments to pay loans, alimony, etc.).

UNEMPLOYMENT COMPENSATION

Furloughed employees are eligible to apply for unemployment benefits, but excepted employees working on a full-time basis are generally not eligible. Employees who wish to file should do so with the Unemployment Office for the state where the employee worked (i.e., last official duty station prior to furlough).

Please be advised, however, if Congress authorizes retroactive pay for furloughed employees, you would be required to pay back any unemployment benefits you received, in accordance with State law.  For more information see OPM’s Pay-Leave Guidance and the U.S. Department of Labor’s Unemployment Compensation for Federal Employees website, https://oui.doleta.gov/unemploy/unemcomp.asp.

FEDERAL EMPLOYEES HEALTH BENEFITS (FEHB)

FEHB coverage continues even if you don’t receive a paycheck.  Your share of premiums will accumulate and be withheld later when the lapse ends and employees can be paid.

FLEXIBLE SPENDING ACCOUNT (FSAFEDS)

Your FSAFEDS payroll deductions stop when you don’t receive pay.  You remain enrolled in FSAFEDS, but you can’t be reimbursed for eligible health care claims until you return to pay status and your payroll deductions can be made.  Payroll deductions will be subsequently collected to match your annual election amount.

Eligible dependent care expenses incurred during the lapse in appropriations may be reimbursed up to whatever balance is in your dependent care account—as long as the expense incurred allows you (or your spouse, if married) to work, look for work, or attend school full-time.

FEDERAL LONG TERM CARE INSURANCE PROGRAM (FLTCIP)

Your coverage will continue.  However, if you usually pay your premiums through payroll deduction, and the lapse period is less than three consecutive pay periods, your accumulated premiums will be withheld when the lapse ends and employees can be paid.  Otherwise, Long Term Care Partners will begin to bill you directly for premium payments.  You must pay those bills on a timely basis in order to continue your coverage.

FEDERAL EMPLOYEES’ GROUP LIFE INSURANCE (FEGLI)

Coverage continues for up to 12 consecutive months of nonpay status, but premiums are collected only for pay periods for which you receive pay.

FEDERAL EMPLOYEES DENTAL AND VISION INSURANCE PROGRAM (FEDVIP)

Your coverage will continue.  However, if the lapse period is less than two consecutive pay periods, your premiums will accumulate and be withheld later when the lapse ends.  If you do not receive pay for two consecutive pay periods, BENEFEDS will begin to bill you directly for premium payments.  You must pay those bills on a timely basis in order to continue your coverage. 

THRIFT SAVINGS PLAN (TSP)

For information on the effect of a furlough on your Thrift Savings Plan contributions, loans, and investments, please refer to https://www.tsp.gov/index.html. 

CHILDCARE SUBSIDY PROGRAM

Employees enrolled in their agency child care subsidy program should contact their agency HR office for information about payments.

EMPLOYEE ASSISTANCE PROGRAMS

Employee Assistance Program (EAP) services can be helpful in providing confidential counseling with experienced, licensed counselors, and many EAPs can provide access to legal and financial consultation services.  Contact your agency’s EAP office to determine what services might be available to you.

OTHER CONSIDERATIONS

Some mortgage, loan, credit and utility providers have indicated that customers may qualify for alternative arrangements.  Please contact your providers for more information.

Note:  This guidance should not be considered time and attendance instructions.  Guidance on documenting time and attendance will be provided by each agency and payroll provider.’

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools / Resources

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in UNCATEGORIZED

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Notice of Annuity Adjustment – Valuable Information

Posted on Friday, 11th January 2019 by

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OPM sent out a notice of annuity adjustment in late December to all annuitants and survivor annuitants. I received mine on December 22. This document, the first for 2019, includes your new monthly payment resulting from our recent 2.8% COLA Adjustment. There’s a lot of important information included on this form and I keep them in my retirement folder for future reference, along with all correspondence received from OPM.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

This document is a wealth of information, it lists your previous and new year’s gross annuity with all deductions and so much more. First, you should know that your 2019 deductions may change shortly due to health care premium changes resulting from the recent FEHB Open Season. You may receive a new Notice of Annuity Adjustment in February listing federal dental and vision care premium increases. The current notice does list your primary FEHB plan increase in a statement under the Notice of Annuity Adjustment Chart. Also, anytime you initiate a change to your checking/savings allotments, state or federal tax withholdings, or anyone of 89 deductions or additions listed on the back of this notice, you will receive a new annuity adjustment in the mail.

The first adjustment that we receive each year also includes the monthly survivor annuity currently payable in the event of your death to your spouse. It actually lists the gross monthly amount payable to your named spouse. This is listed just below the Adjustment table on the form. This form also includes your retirement claim number and suggests having this number available when contacting OPM about your retirement benefits. 

I typically highlight the key information on this form and place a copy with my estate plan. You will also find valuable information about your survivor elections on the back of the form along with OPM contact information and a list of the codes used for deductions and additions.

Enter your new 2019 annuity values provided on this notice in our updated Projected Annuity Calculator. My annuity has increase over 33% since I retired in 2005. This calculator lets you project annuity growth through 2059!

Those who elect a survivor’s benefit can calculate their total value without the survivor election using the data provided by this notice. For example, if your spouse’s monthly survivor annuity currently payable in the event of your death is $2,750, multiply that number by 12 to determine the spouse’s annual benefit, $33,000 a year in this example.

If you elected a full survivor’s benefit your spouse receives either 55% for CSRS or 50% for FERS annuitants full annuity amount for life.  To elect a full survivor annuity for your spouse your annuity is decreased by 10% for FERS and just under 10% for CSRS annuitants.

To determine your full CSRS annuity amount, without the spousal election deduction, divide $33,000 in this example by .55 (CSRS) which equals $60,000 a year.  Use 50% for a full FERS survivor’s benefit. Many annuitants assume their spouse will receive 50% or 55% of what they are currently receiving yearly. The surviving CSRS spouse receives 55% and the FERS spouse receives 50% of what your total annuity would be without a survivor annuity election. This is also the amount a federal annuitant would receive if their spouse dies while the annuitant is retired.

Another way to look at this is that the surviving spouse for a CSRS annuitant will receive approximately 60% of what the couple receives prior to the annuitant’s death when the annuitant selected full survivor benefits.  A surviving spouse for a FERS annuitant will receive about 55% of what the couple receives prior to the annuitant’s death when the annuitant selected full survivor benefits.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools / Resources

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Direct Deposit Changes – Updated Procedures

Posted on Friday, 4th January 2019 by

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Many retirees and survivor annuitants call OPM to change direct deposit information and become frustrated because they can’t get through, their line is busy most of the time. OPM services 2,113,414 federal annuitants, 523,737 survivor annuitants plus postal service retirees as well.

It is easy to change monthly annuity payments from one financial institution to another if you understand your options. Direct Deposits will continue to be received by the originally selected financial institution until OPM and the U.S. Treasury are notified by the payee that the payee wishes to change the financial institution receiving the Direct Deposit.

It’s recommended that the annuitant maintain accounts at both financial institutions until the transition is complete. Don’t close your original account until after the new financial institution receives your first Direct Deposit payment.

If you are already receiving your federal benefit payment by direct deposit, and would like to have your payments sent to a different account use the procedures that follow to make the change. Recently, OPM and the U.S. Treasury made changes to the program including updating the link to the SF 1199A form.

To enroll in Direct Deposit or to change your enrollment to a new account, OPM needs to know the routing number of the financial institution and your account number. The financial institution will provide this information or you can locate this information on the checks you use.

Use the following direct deposit change options:

  • Fax an SF 1199A form to 724-794-6633. This form can be obtained from your financial institution or you can print out a copy online. (The bank must sign the form)
  • Mail an SF 1199A form to OPM, Retirement Operations, PO Box 440, Boyers PA 16017-0440.
  • Call OPM at 1-888-767-6738. Please be sure to have your bank routing number and account number handy.
    • OPM’s line is frequently busy, call early and often throughout the day to get through and you must have your retirement claim number or Social Security number available.

Using OPM’s Retirement Online Services makes changes like this easy, you can make this change online after registering for the free service. I signed into my account, see following graphic, and clicked on Direct Deposit. The blacked-out areas hide my personal account information. All you have to do is click on change and enter your new bank routing and account numbers. When you access the Direct Deposit page it will state what date your change will take effect in the last line above your personal data.

The menu to the left on the Services Online graphic show all that you can do once registered. You can obtain duplicate copies of your 1099 R statement, print out a statement outlining all of your life insurance coverage, initiate or change allotments, increase or decrease state tax withholding, print out a statement of your annuity that you can provide to lenders for loans, and much more. It is worth the time and effort to register for this service.

To register you must call OPM and they will send you access information in the mail. Yes, I know it’s difficult contacting them by phone. What I do is dial their number, if its busy I hang up and immediately click on redial, I typically get through in several minutes using this technique. Expect long wait times, I’ve waited on hold for up to 45 minutes.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools / Resources

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Stock Market Turmoil – What’s Next

Posted on Thursday, 6th December 2018 by

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The wild stock market swings are heavy on the minds of investors today, especially for those approaching retirement and retirees living on a fixed income. It is even more problematic if you depend on Thrift Savings Plan (TSP) and other retirement account withdrawals.  Market volatility is uncomfortable to say the least when you see what you worked a lifetime saving shrink dramatically, sometimes overnight. I wrote several articles about coping with market fluctuations and how to shelter your nest egg from the coming storm.

I don’t care how seasoned of an investor you are, market volatility is a concern and all ponder the ramifications of a major correction. The S&P on December 6, 2018 was on course to have its worst performance in 7 years!  The following chart, excerpted from the TSP website, shows the current year and last 12-month fund performance.  The ultra-conservative G Fund has outperformed all but the C fund over the past 12 months.

Request a Personal “Federal Retirement Report™” and Annuity Review

Reviewing this chart confirms 2018 did not perform as many had suggested at the beginning of the year. The returns are meager and could worsen if December stock market performance doesn’t improve. After 10 years of gains it is what can be expected.  At the beginning of the year many talked about how foreign stocks were undervalued and should perform well in 2018, just the opposite happened as the market dynamics changed. The concern from this point on is where is the market heading over the short and long term.

These changes aren’t of much concern to those who have decades to grow their retirement accounts. It’s those approaching retirement and retirees in general that can’t wait out a major correction or pending recession.  Downturns create an atmosphere where many defer retirement until their investments recover unless they took measures beforehand and moved to more conservative low beta investments as I discussed in my article titled, “Is the Stock Market Keeping You Up at Night?.”

In the referenced article I state, “Over the past 120 years there has been many recessions and of course the great depression that started in 1929. From the early 1900s on there have been four major recessions with the longest recovery period from 1929 to 1955, 25 years! The average recovery period was 16.5 years. The shortest recovery period lasted only six years from 2009 to 2015. What most of us have experienced since 1985 are bull markets interrupted with one recession running six years from 2009 to 2015. Yet, the most recent recession always seems so much worse than earlier periods since it is fresh on our minds.”  It’s the recovery periods that give those approaching retirement and retirees pause.

The good news is that over time good investments recover as outlined in the following TSP Annual Return Chart excerpted from the TSP website.

It took almost 4 years for the C fund to recover the loss. The C Fund in 2008 lost $369.90 for each $1,000 invested dropping the balance to $630.01. In 2009 the C Fund gained 26.68% increasing the balance to $798 Then in 2010 the C Fund increased 15.06% increasing the balance to $918.17 then in 2011 the 2.11% gain increased the balance to $937.54.  Finally, in 1012 the 16.07% gain raised the balance of that original $1,000 to $1,088.  The International (I Fund) didn’t recover until 2013. Many investments in 2008 and 2009 dropped 50% or more and it took many years for those to fully recover their losses

A well-diversified core portfolio can provide the balance you need to whether stock market volatility. However, the more conservative you are the faster the recovery will more than likely be. Yes, we all are concerned when markets fall dramatically but it isn’t the end of the world.  It’s the beginning of a new reality and one that we have to deal with.  Most reduce their investment risk if they will need to withdraw from their retirement accounts to live comfortably. Plus, they may sleep better at night knowing their account balances will be there when needed.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools / Resources

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Looking at the Numbers – The Second Time Around

Posted on Friday, 23rd November 2018 by

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Updated 8/12/2025

We provide extensive financial planning guidance to help anyone from a new hire to a retired annuitant evaluate and assess their economic strength. I mentioned in last year’s article, “few evaluate their finances until their checks start to bounce or they are so much in debt they can’t dig themselves out.”  One of the leading causes of divorce today is financial issues and not living within one’s means.

Updated Budget Worksheet

Our 8-page Budget Work Sheet helps individuals and couples determine where they stand pre- and post-retirement.  The worksheet guides you through listing your income from all sources, loans and debts, utility costs, insurance premiums, monthly savings and investment contributions, and miscellaneous expenses. An individual or couple will know what they are bringing in each month, their total costs, and where they stand financially.

This worksheet is a downloadable PDF file that you can print out. Just lay it out on the table for you and your spouse/partner to fill out together with a pen or pencil. It evokes discussions and doesn’t require sitting at a computer to complete.  This way, everyone knows firsthand where the household money is being spent and how much is needed each month to make ends meet.

Working couples often neglect to balance the books so that each party equitably supports the household to the degree possible. When this happens, it places an unfair burden on whoever is paying the bills and can lead to marital discord.

Making Ends Meet

This worksheet includes a Common Expense column for working couples that reveals how much is needed monthly to support the family. Many newlyweds enter marriage without sufficient financial planning; they are in love and neglect to address the elephant in the room, making ends meet. Of course, this is natural to a certain extent, especially for the very young.

My wife and I are a prime example. We married young; my wife was 19, and I was barely 20, while I was in the military earning a measly $98 a month! That was about one-third of the minimum wage back then. We flew to Biloxi, Mississippi, with a few hundred dollars in our pockets, no car, and not knowing what lay ahead.  Yet, we persevered and flourished. Most who start like this end up divorced early on.

Fortunately, federal employees have significant benefits, good pay, and are generally older and wiser than the very young at heart. Yet, they often enter a relationship with blinders on, neglecting to take the necessary steps early on to right the ship and balance the financial load placed upon them.

Getting Started

Individuals and couples can easily evaluate pre- and post-retirement expenses; there are columns for both entries. For example, under LOANS / DEBT, there are four columns as noted on the excerpted table below. If you pay off your mortgage when you retire, the post-retirement column would show zero dollars for your monthly mortgage payment. We extend that to everyday expenses, both pre- and post-retirement, for couples to determine what expenses to share when both have income.  In this case, the mortgage would be a common expense pre-retirement and zero dollars post-retirement.

A car loan could be considered an individual expense if both have a car and income. Tailor the chart and add additional standard charges if relevant. I highlighted the expenses that most would consider to be shared by working couples. A single person wouldn’t need the common charges identified because there would not be anyone to share the costs with.  This process works for everyone.

Download Worksheet (PDF Version)

Common Expenses

These expenses show the amount needed each month from working couples to pay the household bills, save for a rainy day, and how much is spent on each line item.  If you are a married couple and one is a stay-at-home mom or dad, the working spouse generally earns enough to cover household expenses and keep things running.  Married working couples, each earning about the same, could equally split the common costs. When one partner is still working and another is a retired annuitant, the division would be decided by the pair as to what each can contribute based on all income sources: salary, pension, Social Security, 401 (k) distributions, etc.

This exercise helps working couples share expenses equitably when both have sufficient income to contribute.  At the very minimum, it effectively reveals total income to costs so that you can see if you have anything left after paying the monthly bills.

Another key benefit of completing the worksheet is to discover where all of your money is going each month. Many young people today struggle to balance a checkbook. They use their debit cards until they are rejected for insufficient funds. Then, they go online to check their balance and wait for the next paycheck or transfer money from a savings account if they have one.

The End Result

After completing the worksheet, you will know where and what you are spending your money on and be able to evaluate ways to trim costs. Consider dropping unnecessary cable options, programming your HVAC thermostat to reduce utility expenses, replacing incandescent bulbs with LEDs, cutting down on your trips to Starbucks, and switching to a lower-cost cell phone service, among other cost-saving measures. There are many ways to economize today.

It’s a good idea for couples to open a joint checking account in addition to their checking accounts. If both are working, each would deposit their share of the common expenses in the joint account each payday for the bills.  The excess in the joint account would accumulate for emergencies and discretionary items, or you can set aside emergency or vacation savings in a separate account.  This way, the person paying the bills should have sufficient funds each month to pay the bills. Even if only one person is working, a joint account is necessary so both can pay bills and sign checks.

This is a dynamic process; expenses and income change over time. It’s imperative to revisit your worksheet at least once a year or whenever there is a major change, such as a pay raise, someone retires, or for younger couples when a child is born.

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details 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 may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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2019 FEHB Plan Selection Guide

Posted on Friday, 9th November 2018 by

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Open season starts November 12th. There are tools available to evaluate provider options and help you select your 2019 plan. Use the following resources to make an informed decision for you and your family’s health care needs.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Obtain Copies of Plan Guides

Active Employees

  • Request hard copies of desired plan brochures through your benefits coordinator. If you don’t know who that is talk with your supervisor.
  • Download plan brochures from the OPM website.
  • Request copies direct from the plan providers. I requested and received brochures direct from GEHA and Blue Cross Blue Shield weeks before they were available on the OPM site.

Annuitants (Retirees)

  • Sign up for FEHB Open Season Online – This site is devoted to federal annuitants. Request plan brochures to be mailed to your home address or you can download brochures to your computer. You must register to use this site and annuitants can change enrollments online.
  • Download plan brochures from the OPM website.
  • Request copies direct from plan providers.

Determine Plan Costs – 2019 FEHB Plan Rates (All rates are now posted online).

Compare Plans – Use OPM’s FEHB Plan Comparison Tool.  Compare costs and benefits of up to 4 plans side-by-side. It is easy to use and will show you the differences between plans with only a few keystrokes. OPM advises, “The information contained in this comparison tool is not the official statement of benefits. Before making your final enrollment decision, always refer to the individual FEHB brochures. Each plan’s FEHB brochure is the official statement of benefits. Items marked with an * must be completed before advancing to the health plan comparison.”

I compared the Blue Cross Blue Shield Basic and Focus plans to the GEHA Standard Plan for my last article.

Changing Enrollment

Annuitants (Retirees)

  • Annuitants can change plans online at FEHB Open Season Online. The online service is easy to use and you can track your change submissions.
  • Call Open Season Express 1-800-332-9798.
  • Send regular mail (Postmarked no later than final date of Open Season) to:

Office of Personnel Management
Open Season Processing Center
P.O. Box 5000
Lawrence, KS 66046-0500

When sending requests by mail clearly state your Open Season request. If you are making an enrollment change, be sure to tell OPM the plan you want, the type of coverage (Self Only or Self and Family), and the enrollment code. You must include your annuity claim number and social security number on your request. If you are choosing Self and Family coverage, we will also need your dependent and other insurance information as specified in the instructions mailed to you at the beginning of Open Season.

Federal Employees

Federal Employees Dental and Vision Insurance Program (FEDVIP)

Dental and vision benefits are available to eligible Federal and Postal employees, retirees, and their eligible family members on an enrollee-pay-all basis. Enrollment takes place during the annual Federal Benefits Open Season in November and December. New and newly eligible employees can enroll within the 60 days after they become eligible.

Register online at www.BENEFEDS.com to review and download plan brochures, use their plan comparison tool, and to initiate a change or cancel enrollment. I compared several plans this morning using their comparison tool. If you aren’t a registered user sign up now. You will be able to review your Dental, Vision, Long Term Care and Flexible Spending accounts.  Enrollees can initiate changes during open season, when there is a life event change, or to cancel coverage at any time.

For enrollment/premium questions regarding dental and vision insurance, contact BENEFEDS at 1(877)888-3337.

Medicare Impact on FEHB Plans

Review the following articles that describe the impact Medicare has on your FEHB provider payments.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Additional Resources:

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Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

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

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2019 Leave Chart & Schedule Tracker Now Available

Posted on Friday, 2nd November 2018 by

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Each year we publish a comprehensive leave record that federal employees can use to track their daily record of annual and sick leave, comp, and credit hours used. Our updated 2019 Excel Leave Chart is designed for active federal employees that are planning their retirement and need to establish realistic target retirement dates. The new Excel 2019 Leave Record Spreadsheet also helps federal employees maximize their annuity through prudent management of their leave balances.

Please share our 2019 leave chart with everyone in your organization. The chart tracks all leave balances and you are able to annotate your work schedule on the chart as well.

A few leave chart users reported a problem with opening the leave spreadsheet, the Excel chart was opening up for them in protected mode and they were not able to enter data. If your spreadsheet opens in protected view click the “enable editing” button in the yellow bar at the top of the form. However, if you don’t see the enable editing button you may have an older version of Excel or your IT department may have to allow the form to pass without restrictions.

A Microsoft Office consulting firm advised us that If the spreadsheet only opens in the protected view status security settings on your agency’s LAN and network will have to be made by your IT staff to allow the form to function. Some agencies increase their security settings to lock out certain documents based on the parameters the IT specialist selects. We do include several hyperlinks in our spreadsheet to link users to additional supporting information such as our sick leave conversion chart and that may be the cause. If you have this problem when opening the form I suggest talking with your IT people to have them allow the form to pass without restrictions.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Helpful Retirement Planning Tools / Resources

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

 

Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS

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Blue Cross Focus to GEHA Standard Plan Comparison

Posted on Friday, 26th October 2018 by

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Blue Cross Blue Shield (BCBS) is offering a new lower cost fee-for-Service Focus Plan in 2019. This article compares the BCBS Focus plan to the GEHA Standard plan. Many federal annuitants opt for a lower cost Federal Employee’s Health Benefit (FEHB) plan once they sign up for Medicare. The majority of FEHB plans waive many of the copayments, coinsurance, and deductibles for those who have Medicare as their primary provider.

Monthly 2019 Premium Rates

 

 

 

 

Plan Coverage

According to the FEP BLUE guide, “There’s a lot that FEP Blue Focus covers, but there are some things it doesn’t cover. These include: routine dental services, Non-preferred drugs, skilled nursing facility care, hearing aids and long-term care. To see a complete list of exclusions, download the FEP Blue Focus brochure.” You must stay in-network. However, according to BCBS, 96% of hospitals, 95% of doctors and over 65,000 Preferred retail pharmacies are in their network. Plus, there’s no referral needed to see a specialist, and your coverage travels with you overseas.

GEHA provides reimbursement for both preferred and non-preferred providers and their Standard Plan covers dental services. They also pay for hearing aids, up to $2,500 every three years. Download the GEHA 2019 Plan Brochure for your personal  review.

Plan Highlights

  • Provider Coverage – GEHA Standard Plan covers Preferred Provider Organization (PPO) and non-PPO providers. BCBS limits coverage to PPOs.
  • Doctor Visits – $15 GEHA copay for office visit (non-PPO 35%), BCBS Focus members pay nothing for preventative visits with preferred providers, $10 copayments for the first 10 visits for professional doctor’s visits, after the 10th visit 30% of the plan allowance and a deductible applies. No coverage for non-PPOs.
  • Hospital Inpatient – GEHA PPO services require payment of 15% for covered services and 35% non-PPO. BCBS Focus requires 30% payment for PPO services, no reimbursement for non-preferred.
  • Outpatient Services requires payment of 15% for covered hospital services and 35% for non-PPO under the GEHA plan and BCBS Focus requires a 30% payment of the plan allowance (deductible applies). No coverage for non-preferred services.
  • Accidental Injury – With GEHA Standard you pay nothing up to the plan allowances of covered charges within 72 hours of an accident. BCBS Focus specifies nothing for Preferred outpatient hospital and physician services within 72 hours (regular benefits apply thereafter.) There are payments required under the Focus plan for non-participating providers of the difference between the plan allowance and billed amount for outpatient hospital and physician services within 72 hours.
  • Hearing aids – covered up to $2,500 every 3 years with GEHA, no coverage under the BCBS Focus plan.
  • Dental Services – GEHA covers 50% up to the Plan allowance for diagnostic and preventive services per year as follows: Two examinations per person per year, two prophylaxis (cleanings) per person per year, two fluoride treatments per person per year and $150 in allowed X-ray charges per person per year (payable at 50%). BCBS Focus limits coverage to treatment of an accidental dental injury within 72 hours (regular benefits apply thereafter). Note: When you are covered by more than one vision/dental plan, coverage provided under your FEHB plan remains as your primary coverage. FEDVIP coverage pays secondary to that coverage
  • Both plans provide comprehensive prescription drug programs. GEHA Standard includes a mail order program, BCBS Focus does not. Review each plan’s brochure for specifics. For example, under the GEHA Standard plan members pay the lessor of $10 or the pharmacy’s usual and customary cost for generic drugs. BCBS Focus charges a $5 copayment up to a 30-day supply from their preferred retail pharmacy. There are different payment schedules for non-network pharmacies.
  • Catastrophic Cost Protection – Under the GEHA Plan you pay nothing after $6,500 Self Only ($13,000 Self Plus One or Self and Family) per year for PPO providers. The limits increase for non-PPO providers to $8,500 Self Only ($17,000 Self Plus One or Self and Family) per year for Non-PPO providers. BCBS Focus has similar limits for PPO providers and there is no catastrophic protection for services provided by non-PPO providers except under certain situations as outlined in their brochure on page 18.

FEHP Cost Savings After Signing up For Medicare

When Original Medicare is the primary payor, Medicare processes your claim first. In most cases, your claim will be coordinated automatically and your FEHB plan will then provide secondary benefits for covered charges.

For members enrolled in the GEHA High and Standard Options, GEHA waives some costs if the Original Medicare Plan is your primary payor – They will waive some out-of-pocket costs as follows:

  • Inpatient hospital benefits: If you are enrolled in Medicare Part A, they waive the deductible and coinsurance. When you are enrolled in the high option, and you use a PPO facility, they will also waive the inpatient admission copayment.
  • Medical and surgery benefits and mental health/substance use disorder care: If you are enrolled in Medicare Part B, they waive the deductible and coinsurance.
  • Office visits PPO providers and MinuteClinic (where available): If you are enrolled in Medicare Part B, they waive the copayments for PPO office visits.
  • Prescription drugs: If you have Medicare Parts A and B, you will pay a copayment or coinsurance for drugs through CVS Caremark and at retail pharmacies. Review costs on page 85 of their plan brochure.
  • Manipulative Therapy benefits: There is no change in benefit limits or maximums for manipulative therapy care when Medicare is primary.
  • Physical, speech and occupational therapy benefits: There is no change in benefit limits or maximums for therapy when Medicare is primary.
  • GEHA does NOT waive the $300 (High Option) or $500 (Standard Option) copayment for specialty pharmacy medications not dispensed by the CVS Specialty Pharmacy. If Medicare denies coverage, they do not waive the coinsurance.
  • If you obtain services from a non-Medicare provider, they will limit their payment to the coinsurance amount they would have paid after Original Medicare’s payment based on their Plan allowance and the type of service you receive.

(Download the GEHA Payment Schedule for Medicare participants. )

For members enrolled in the BCBS Focus option, BCBS waives some costs if the Original Medicare Plan is your primary payor – They will waive some out-of-pocket costs as follows:

When Medicare Part A is primary –

  • They will waive their calendar year deductible and coinsurance
  • Once you have exhausted your Medicare Part A benefits, you must then pay the coinsurance once the calendar year deductible has been satisfied for the inpatient admission. Note: Precertification is required.

When Medicare Part B is primary –

  • They will waive their calendar year deductible, coinsurance and copayments for inpatient and outpatient services and supplies provided by physicians and other covered healthcare professional and outpatient facility services.

Note:  BCBS does not waive benefit limitations, such as the 10-visit limit for home skilled nursing visits. In addition, they do not waive any coinsurance or copayments for prescription drugs.

You can find more information about how the BCBS Plan coordinates benefits with Medicare in their highly informative Medicare and You Guide for Federal Employees.

For specifics and clarifications download the plan brochures. If you have questions after reviewing the plan brochures call the provider for clarifications and additional guidance.

  • GEHA (1-800-821-6136)
  • BCBS (1-800-411-2583

General Observations

There is much to consider when changing plans to avoid coverage issues and to reduce your costs down the road. Take your time and review the various programs available to you by all providers in your area. I limited this article to a comparison between two popular low-cost options that many enrolled in the traditional Medicare Parts A and B program might find worthwhile exploring. I’ve been enrolled in the GEHA Standard plan for a number of years starting before enrolling in Medicare at age 65. Prior to that my wife and I were enrolled in the BCBS Basic plan. Both served our needs.

Since enrolling in Medicare, we haven’t paid any copayments, coinsurance or deductibles even though my wife and I had multiple operations and last year I ended up in the emergency room.

Medicare Part B does require a monthly payment and it is income adjusted. However, you can often offset the additional costs by changing to a lower cost FEHB plan. Also, some FEHB plans will actually reimburse you for some of your Part B Premiums. For example, BCBS Basic Option members can get a $600 reimbursement for paying Medicare Part B premiums.

Open season runs from November 12, 2018 through December 10, 2018 and plan brochures are now available from most providers. OPM will have all plan brochures available online November 7th or you can sign up to access them via the OPM FEHB Online portal.

Request a  Federal Retirement Report™  today to review your projected annuity payments, income verses expenses, FEGLI, and TSP projections.

Additional Resources:

Helpful Retirement Planning Tools 

Distribute these FREE tools to others that are planning their retirement

Disclaimer: Opinions expressed herein by the author are not an investment or benefit recommendation and are not meant to be relied upon in investment or benefit decisions. The author is not acting in an investment, tax, legal, benefit, or any other advisory capacity. This is not an investment or benefit research report. The author’s opinions expressed herein address only select aspects of various federal benefits and potential investment in securities of the TSP and companies mentioned and cannot be a substitute for comprehensive investment analysis. Any analysis presented herein is illustrative in nature, limited in scope, based on an incomplete set of information, and has limitations to its accuracy. The author recommends that retirees, potential and existing investors conduct thorough investment and benefit research of their own, including detailed review of OPM guidance for benefit issues and for investments the companies’ SEC filings, and consult a qualified investment adviser. The information upon which this material is based was obtained from sources believed to be reliable, but has not been independently verified. Therefore, the author cannot guarantee its accuracy. Any opinions or estimates constitute the author’s best judgment as of the date of publication, and are subject to change without notice. The author explicitly disclaims any liability that may arise from the use of this material.

Posted in BENEFITS / INSURANCE, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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