Cost Issues Raised on Benefit Improvement Bills

Cost concerns were raised at a House hearing regarding two pending benefit improvement proposals, one to encourage greater participation in the TSP and the other to raise the age of allowable dependent coverage in the FEHB. The TSP proposal, which the TSP governing board recommended but that has not been introduced yet as a bill, would automatically set a default personal contribution of 3 percent for all newly hired employees and set a default fund of the lifecycle fund most closely corresponding to a projected retirement eligibility date. The FEHB proposal, HR-5550, would extend family coverage to age 25; typically it cuts off at age 22 under current policy, although "temporary continuation of coverage" is available for up to 36 months afterward, with the enrollee responsible for paying the entire premium cost.