Also increasing automatically with a raise are TSP investments by those who invest on a percentage of salary basis; agency contributions under FERS likewise rise. Image: Shoaib_Mughal/Shutterstock.com
The general schedule pay raise to be paid as of the first full pay period of the year—January 12-25 for most—as always will also have an impact on some benefits.
The raise will average 2 percent, GS employees should remember that it will vary by locality from 2.35 percent in the San Francisco area to 1.88 percent in the Cleveland area; it will be 1.91 percent in the “rest of the U.S.” locality for areas outside the city areas with their own rates, which has the most employees.
Also taking effect as of the first pay period of the year are FEHB and FEDVIP plan elections and premiums for the 2025 plan year (plan elections and premiums in the new Postal Service Health Benefits program are on a calendar year basis).
The first pay distribution of the year—typically made about a week to 10 days after the end of a pay period—also will reflect elections made for health care accounts, dependent care accounts or both under the flexible spending account program. A pay raise also commonly increases coverage and premiums in FEGLI, since they are linked to salary levels.
Also increasing automatically with a raise are TSP investments by those who invest on a percentage of salary basis; agency contributions under FERS likewise rise. For those who invest on a dollar amount basis, investments won’t rise unless they elect to increase that amount; for those under FERS, matching contributions won’t rise unless they do so, although the automatic 1 percent amount rises regardless.
Blue-collar employees receive their raise at differing times of a fiscal year, including some getting raises retroactive to last October; they generally receive the same percentage as GS employees locally but there is a complex capping mechanism in place. SES members and those under other high-level pay systems do not get raises automatically but as a practical matter many agencies pay their performance-based raises at the start of the year.
Meanwhile, OPM has put out several pieces of guidance (on chcoc.gov) in addition to the initial announcements related to the raise that were issued last week. One is a reminder that federal employees under a “domestic employees teleworking overseas” agreement receive the lower of the locality pay they would have received had their official duty station had not been changed to an overseas location or the amount of overseas locality pay the employee would be paid if the employee were an eligible member of the Foreign Service.
The other is a reminder that as in the past, despite the continuation of the freeze on the rates payable to political appointees under the Executive Schedule, the underlying EX rates to which pay caps for SES and other senior level career employees are linked nonetheless have increased—to either $225,700 or $207,500, depending on whether their agency’s performance evaluation system has met certain standards.
The GS pay cap, also linked to an EX rate, is increasing from $191,900 $195,200.
Deferred Resignation Periods about to End for Many; Overall 12% Drop
Retirement Surge Likely as Deferred Resignation Periods End
Senate Rejects Bills to Defer Shutdown; Familiar Process Lies Just Ahead
Senate Bill Would Override Trump Orders against Unions
Report Describes Impact of Shutdown on Employees, Agencies
TSP Adds Detail to Upcoming Roth Conversion Feature
See also,
How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder
The Best Ages for Federal Employees to Retire
Best States to Retire for Federal Retirees: 2025