CSRS Voluntary Contribution Account Distribution - Employees may contribute up to 10 percent of the basic pay for their creditable service to a voluntary contribution account. Accounts earn a market rate of interest. The employee may withdraw the funds from the account at any time or use them to purchase an additional annuity at retirement. The additional annuity is $7 a year for each $100 in the account, plus 20¢ for each full year the person is over age 55 at retirement.
Federal Employees' Group Life Insurance (FEGLI) - provides term life insurance at group rates with payroll deductions available through your Federal agency. Benefits are paid if you or a family member die or if you become dismembered while insured.
It's important protection to help you plan for the future financial needs of your family and loved ones.
There are two types of FEGLI life insurance: Basic and Optional.
Basic: Equals your salary rounded up to the next even $1,000, plus $2,000; includes Accidental Death and Dismemberment coverage at no additional cost; plus "Extra Benefit" coverage for enrollees under age 45. The Extra Benefit doubles the amount payable for Basic if you are age 35 or younger when you die. The extra amount decreases each year by 10% until there is no "extra" coverage payable if you die at age 45 or older.
For Basic insurance, you pay $.15 biweekly for each $1,000 of your coverage. The Federal Government pays the remaining 1/3rd of the cost of Basic insurance. (Basic is free for U.S. Postal Service employees).
Optional: There are three types of Optional insurance: Option A-Standard ($10,000 of life insurance), Option B-Additional (you choose from1 to 5 times your salary), and Option C - Family (coverage on your spouse and eligible dependent children).
For Optional insurance, you pay the full cost, which varies depending on the option(s) you elect, your salary, and your age. Optional insurance premiums increase based on five-year bands. Premiums are available at: www.opm.gov/insure/life/rates/index.asp.
Newly hired and newly eligible employees are automatically enrolled in Basic insurance on their first day in pay and duty status.
If you want Optional Insurance, you must elect coverage within 31 days after becoming eligible.
You have few other opportunities to enroll in Basic insurance or increase coverage after your opportunity as a new employee expires:
* If you already have Basic and experience a FEGLI-specific qualifying life event (QLE), you may elect or increase Option B and/or Option C Coverages. QLEs are:
* Marriage
* Divorce
* Spouse's Death
* Birth/adoption of a child
* By providing satisfactory medical information; or
* During rare FEGLI Open Seasons (the FEGLI Program does not participate in the annual Federal Benefits Open Season.
For additional details and information always refer to the individual plan brochures before making your final decision. The FEGLI Booklet for Federal Employees, the FEGLI Booklet for Postal Employees and the Guide to Federal Benefits all can be found at: www.opm.gov/insure/life/.
Long Term Care (LTC) Insurance - The Federal Long Term Care Insurance Program (FLTCIP) provides long term care insurance to help pay for costs of care when enrollees need help with activities they perform every day, or you have a severe cognitive impairment, such as Alzheimer's disease.
Most Federal and U.S. Postal Service employees and annuitants, active and retired members of the uniformed services, and their qualified relatives are eligible to apply for insurance coverage under the FLTCIP.
Most employees must be eligible for the FEHB Program in order to apply for coverage under the FLTCIP. It does not matter if they are actually enrolled in FEHB - eligibility is the key. Annuitants do not have to be eligible or enrolled in the FEHB Program. Certain medical conditions, or combinations of conditions, will prevent some people from being approved for coverage. You must apply to find out if you are eligible to enroll.
For more information about the FLTCIP, please contact Long Term Care Partners at 1(800)582-3337, or visit the website at www.ltcfeds.com.
Pension Maximization - defined as making the most of your survivorship benefits.
Thrift Savings Plan (TSP) - The Thrift Savings Plan (TSP) is a tax-deferred retirement savings and investment plan that offers Federal Employees the same type of savings and tax benefits that many private corporations offer their employees under 401(k) plans. By participating in the TSP, Federal employees have the opportunity to save part of their income for retirement, receive matching agency contributions, and reduce their current taxes.
Most employees of the United States Government are eligible to participate in the Thrift Savings Plan. You are eligible if you are:
A Federal Employee's Retirement System (FERS) employee (generally if you were hired on or after January 1, 1984), or
A Civil Service Retirement System (CSRS) employee (generally if you were hired before January 1, 1984 and did not convert to FERS), or
A member of the uniformed services (active duty or Ready Reserve), or
A civilian in certain other categories of Government service
If you are not certain which retirement system you are covered under, you should check with your personnel or benefits office.
In addition to being covered by an eligible retirement system, you must also be:
Actively employed by the Federal Government as a civilian employee or as a member of the uniformed services,
In pay status, in order to contribute, and
Working full or part time.
