Check Those Next Pay Statements

Federal employees will want to take a close look at their next pay and leave statements. The average 1.3 percent general schedule pay raise that was effective in the first full pay period of the year, covering January 10-23 for most, should be showing up in the next pay distributions, which will reflect that period (blue collar employees receive their raise at differing times of the year, varying by location). Note that 1.3 percent is only an average; actual raises vary by locality from about 1.2 to 1.5 percent. A 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). FEGLI rates changed effective January 1 as well for certain age groups and certain options. Regardless of salary system, changes in FEHB or FEDVIP insurance premiums or changes in coverage elected during last fall’s open season also should be showing up effective with the 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.