As long as I can remember, the phrase “take five” meant that there would be a five minute break before you had to go back to work. These days it has another meaning, at least as far as the federal government is concerned.
If you look around the office, you may see new hires that, at least as far as age is concerned, look as if they are close to retirement. And they probably are. Quite a few people have become aware of one benefit federal retirees enjoy that may not be available to those who work in the private sector. I’m talking about health benefits. Studies have shown that many private sector employees lose their health benefits coverage when they retire. That’s not the case with federal retirees. If they are covered by the Federal Employees Health Benefits program for the full five years before they retire, they can carry that coverage into retirement.
Still other private sector retirees find their costs going up and/or their level of coverage going down. With one exception, that’s not the case with federal retirees. They get the same level of coverage at the same cost as if they were still employed. The exception is the Postal Service. Through union negotiations, Postal Service employees have a larger percentage of their health insurance premiums paid by their employer. When they retire, that subsidy is lost and they end up paying the same amount as all other federal retirees.
Up to now I’ve been shining the spotlight on those folks who have spent their lives working in the private sector. However, there is another group of people who are also hoping to spend their twilight years of employment in the federal government – those who left government and now want to return. If any of them were enrolled in the FEHB program when they left and reenroll when they are rehired, their coverage is considered to be continuous.
Whether they were first hired into the federal service or rehired after a break in service, when they met the age and service requirements, they would be eligible for an annuity. While that annuity might be small, it would be better than a poke in the eye with a sharp stick. And it would probably more than cover the costs of their health insurance premiums.
