In sum, the more experience federal employees have with their benefits, the more they value them. Image: 3rdtimeluckystudio/Shutterstock.com
By: FEDweek StaffThe most recent survey by OPM of federal employee benefits showed that overall employees find those benefits meet their needs and are of good value. Nothing new there: prior benefits surveys had shown that, too.
However, one finding worth noting—especially for those in their middle or later career stages who may be thinking of moving on to employment elsewhere—is that with time, federal employee benefits tend to look better and better.
The Federal Employee Benefits Survey has been conducted every other year in recent years after being done only sporadically previously. It is distinct from the annual Federal Employee Viewpoint Survey, which gets more attention and goes to more people but which focuses mainly on what employees think about their work environment.
The latest version of the FEBS, conducted last year, resulted in responses from about 21,000 employees, produced many findings similar to those of prior years. Among voluntary benefits, self-reported enrollment once again was the highest in the TSP, 98 percent, and in the FEHB and FEGLI, 81 and 78 percent.
Those not enrolled in the FEHB and FEGLI most commonly said the reason was that they have health insurance and life insurance from other sources; that was the case with eight-tenths of those not in the FEHB, for example. For the program with the lowest voluntary enrollment rate, the dependent care flexible spending account program, the primary reason was not having children or parents who meet the definitions for those accounts.
Enrollment in voluntary programs including the FEDVIP dental and vision insurance programs, health care FSAs and the FLTCIP long-term care insurance program fell in the middle, as also was the case in the past.
Also as in the past, the TSP, retirement annuities and the FEHB were the programs most considered to be important or extremely important—by above 90 percent each—making it “clear that these major benefit programs have an impact on both recruiting and retaining talent in the federal government,” the report said.
Notably, the impact on retention is higher than the impact on recruitment.
“Health and retirement benefits factored significantly into the decision to take a job, with over two-thirds of employees reporting that FEHB, TSP, and a retirement annuity influenced their decision to take a job with the federal government to a great or moderate extent,” it said.
“Looking next at the impact of these benefit programs on retaining employees, the results are even more compelling with over three-quarters of employees reporting that all 3 benefit programs influenced their decision to stay with the federal government to a great or moderate extent,” it said.
To be specific, for decisions to join the federal government, the presence of an annuity was a moderate or great influence for 77 percent, while for decisions to remain, that influence rose to 86 percent. For the TSP and the FEHB, the pattern was the same: 67 percent rising to 80, and 69 percent rising to 78.
Also revealing are the differences by age, which in the federal government strongly correlates to years of service.
Overall, the FEHB and TSP were judged to meet employees’ needs at least to a moderate extent by 94 and 90 percent, and were judged to provide at least good value by 66 and 82 percent. But “Older generations (Boomers and Traditionalists) were more likely to give FEHB and TSP higher adequacy and value ratings than younger generations (Gen Z and Millennials),” the report said.
Also revealing: the continued availability of FEHB benefits in retirement, with the government continuing to pay 70 percent of the cost, actually was rated as important or extremely important by a higher percentage than those giving that rating to the FEHB itself—93 to 90 percent.
In sum, the more experience federal employees have with their benefits, the more they value them.
You haven’t been thinking that way? Then maybe have a conversation with the version of yourself at the start of your federal career about how important benefits such your TSP account, your annuity entitlement and your eligibility to keep FEHB are to your future.
Agency RIFs, Reorganizations Starting to Take Shape
Order Formally Launches ‘Schedule Policy/Career,’ Adds Category of Appointees
Top 10 Provisions in the Big Beautiful Bill of Interest to Federal Employees
A Pre-RIF Checklist for Every Federal Employee, From a Federal Employment Attorney
Work Longer or Take the FERS Supplement Now: Which is Better?
See also
Alternative Federal Retirement Options; With Chart
Primer: Early out, buyout, reduction in force (RIF)
Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process
