FEDweek

Current Statements May Reflect Benefit Changes

The payment of a federal employee raise also may trigger higher coverage under FEGLI Basic and Option B, for those who have them, with a corresponding increase in the premium costs (both types of coverage are based on salary rounded to the next $1,000). Regardless of salary system, changes in FEHB or FEDVIP elected during last fall’s open season–and changes in premiums in a plan for those who didn’t change plans or coverage levels–also should be showing up effective with the year’s first pay distribution. The plan year under the flexible spending account program, during which elections also were allowed in the open season, runs concurrent with a calendar year. For those investing in the TSP based on a percentage of salary, investments also automatically increase with a raise as do agency matching contributions for those under FERS. Those investing on a dollar amount per pay period basis would have to specify a higher amount if they want to increase their investments. Retirees who were eligible for the COLA payment (0.3 percent in most cases, smaller for those retired for less than a year) should have seen the increase effective with their January payments, along with changes in insurance premiums; retirees are not eligible for FSAs nor to make new investments in the TSP.