FEDweek Issue: Wednesday, September 1, 2004 FEDweek is the largest information resource in the federal government with now over one million weekly readers. To Subscribe, Go to http://www.fedweek.com/subscribepopup.htm *********************************************************** Valuable Information for the Federal Family
Federal Job Search http://www.fedweek.com/Jobs/default.asp Job Bulletin Board http://www.fedweek.com/Jobs/default.asp Brand New Federal Manager's Daily Report--FREE Daily Electronic Briefing http://www.fedweek.com/subscribepopup.htm ********************************************************** In This Week's Issue 1. FEHB Announcement Likely Soon 2. HSAs Have Drawn Criticism 3. Experts' View: Your Agency's Role in Your Retirement 4. FEGLI Open Season Reminder 5. Yes, That's September 2005 6. Upcoming Retirement Planning Seminars http://www.fedweek.com/nitp/default.asp 7. OPM Guidance on Educational Credentials 8. Reserve Duty Costs Average Fed $3,000 a Year 9. Significant Portion of Reservists Are Federal Workers 10. Guidance Issued on Children's FEHB Benefit 11. Switching Coverage No Longer Mandatory 12. Salary Group Meeting Ahead 13. The Brand New In-Print 2005 CSRS & FERS Retirement Planning Guides Are Now Available For Immediate Shipment! Plus--Get FEDweek's The Book of Answers FREE! ************************************************************* 1. FEHB Announcement Likely Soon New coverage and premium rates in the Federal Employees Health Benefits program likely will be announced in the upcoming weeks, the kickoff of the annual period in which employees and retirees assess their health insurance options and costs in preparation for the annual FEHB open season. While it's expected that average premiums will once again rise substantially, in line with the general trend in the health insurance sector, the major focus for many will be on health savings accounts. The Office of Personnel Management earlier this year authorized such plans, which combine low premium, high-deductible coverage with tax-favored savings accounts, although it's unclear how many carriers will create such options. The open season for joining the program--for those not already joined--or for changing plans or levels of coverage will run November 8-December 13. 2. HSAs Have Drawn Criticism Carriers offering HSAs, which are restricted to those under age 65, must also offer parallel arrangements for those 65 and older called health reimbursement accounts. That was a reaction to criticism from organizations that argued that HSAs would drain off relatively healthy enrollees, leaving other plans with higher claims rates and, in turn, higher premiums and/or lower coverage for their enrollees. Some members of Congress echoed that oncern earlier this year but no legislative action has been taken to block HSAs. In the only direct congressional response on the issue, the House Appropriations Committee--in a report on the Transportation-Treasury spending bill now awaiting a House vote--said it "welcomes the decision by OPM to make health savings accounts a part of the benefits package available to federal employees. 3. Experts' View: Your Agency's Role in Your Retirement Once you've set your retirement date, your agency takes center stage, writes benefits expert Reg Jones. "Your application to retire will go to your personnel office, where they'll begin rocessing it. You should send it to them at least two months ahead of time," he writes. You'll find his column at http://www.fedweek.com/experts/default.asp. 4. FEGLI Open Season Reminder Starting today (September 1) and running through the end of this month the Office of Personnel Management is conducting one of the rare open seasons in the Federal Employees Group Life Insurance program. Those who don't currently have FEGLI coverage may enroll and those who have coverage may increase their coverage, without the usual restrictions against increasing coverage. Available benefits and the premium rates are not changing, and elections (along with associated premiums) won't take effect until the first pay period of September 2005. Open season elections must be made on a special form, FE-2004, created for that purpose. 5. Yes, That's September 2005 The one-year delay in the effective date of any additional coverage elected in the FEGLI open season has some employees and agency officials thinking that the September 2005 date must be some kind of mistake. Earlier this summer, the Office of Personnel Management even sent out a memo reiterating the September 2005 effective date, saying that the reason for the delay "is to prevent adverse election--employees increasing coverage only when they know they need it, resulting in a high number of immediate claims. Such claims increase the program's costs, and the delayed effective date lessens that effect." OPM noted that there also was a delay in the effective date during the most recent FEGLI open season before this one, in 1999. 6. FEDweek is Announcing the Upcoming Retirement Planning Seminars http://fedweek.sparklist.com/t/294937645/821888/3/0/ Over The Next 30 Years, the Baby-Boomers (YOU) Will Transfer to Your Heirs Over Thirty-Five Trillion Dollars! As you know, the baby-boomers are growing more mature every day and are planning for their retirement. Are you a baby-boomer? Are you prepared for your retirement and to transfer your estate to your loved ones? FEDweek has partnered with two of the most respected federal retirement and estate planning training organizations to provide federal employees with the highest quality of seminars related to your federal retirement, financial and estate planning. Below are the seminar locations through September 2004: Date Sept 9-10 (PBSC) Oklahoma City, OK http://fedweek.sparklist.com/t/294937645/821888/3/0/ Date Sept 13-15 (NITP) Atlanta, Ga -Holiday Inn- Decatur http://fedweek.sparklist.com/t/294937645/821888/3/0/ Date Sept 28-30 (PBSC) Denver, Co. http://fedweek.sparklist.com/t/294937645/821888/3/0/ Date Sept 28-30 (NITP) Washington, DC - Washington Plaza Law Enforcement Only http://fedweek.sparklist.com/t/294937645/821888/3/0/ There are still a few seats available for these locations. For a complete list of seminar locations and dates through December, 2004, Go to http://fedweek.sparklist.com/t/294937645/821888/3/0/ We've also recently added additional seminars for 2004 (Even Hawaii and San Diego!!) dramatically expanding the coverage areas to include most cities throughout the entire country, with more to come. Go to http://fedweek.sparklist.com/t/294937645/821888/3/0/ to see the latest schedule. These comprehensive programs will provide the participant with valuable information about retirement planning and ways to ease the transition into retirement. The seminar speakers, all experts in their field, will challenge you to ask tough questions. These seminars are broken down into a number of components that discuss considerations necessary for planning for retirement, including: FEDERAL RETIREMENT BENEFITS THRIFT SAVINGS PLAN INSURANCE, MEDICARE AND SOCIAL SECURITY BENEFITS FINANCIAL AND TAX PLANNING ESTATE PLANNING LIFE AFTER RETIREMENT AND SECOND CAREERS For more info on these retirement planning seminars, go to http://fedweek.sparklist.com/t/294937645/821888/3/0/. Also, pass the word along to your colleagues that there will also be multi-seminar attendee discounts for employees attending from the same agency office location. Publisher's Note: All Seminar Attendees Who Register For Any Retirement Planning Seminar Will Two Valuable FEDweek Publications FREE! 7. OPM Guidance on Educational Credentials In light of recent attention to the issue of federal employees having educational credentials from "diploma mills" or other unaccredited institutions--sometimes at government expense--the Office of Personnel Management has been briefing agency officials on the issue. For a look at guidance on the issue, go to http://www.fedweek.com/HotFreeNews/default.asp in the hot free info section of our website. 8. Reserve Duty Costs Average Fed $3,000 a Year Being called to active military duty costs the average federal employee about $3,000 a year, the Congressional Budget Office has estimated, although cautioning that some employees actually come out ahead because their military compensation is higher than their civilian federal pay. CBO made that estimate in assessing a provision in the Senate-passed Defense Department authorization bill for fiscal 2005 which would authorize an increase in federal salaries to pay for the difference between civilian and military compensation for federal employees called to active duty in the uniformed services or National Guard. CBO estimated that such a benefit would be worth $58 million to employees in 2005 and $206 million over five years. The legislation also would authorize retroactive pay for the difference between civilian and military compensation for federal employees activated since October 11, 2002, a benefit to employees--and a cost to the government--estimated at $100 million. 9. Significant Portion of Reservists Are Federal Workers CBO estimated that federal employees account for approximately 120,000 positions or almost 15 percent of the total Ready Reserve (which includes the Selected Reserve and the Individual Ready reserve/Inactive National Guard). It cited a DoD survey of reserve personnel in which 59 percent reported either no difference or an increase in their income while on active duty military status. Of the 41 percent of survey respondents who reported a loss of income during military service, about 70 percent said their income was reduced by $3,750 or less, but 7 percent reported a loss of more than $37,000. "Considering the loss in income reported by all survey respondents and the number who reported no loss or an increase in salary, CBO estimates that the average annual reduction in salary while serving in the active-duty military is about $3,000," the cost estimate says. CBO estimated that an average of about 21,000 federal employees will be on active-duty military service in fiscal year 2005, diminishing to approximately 11,500 by 2009. In a separate estimate on a similar bill (S-593), CBO said that about 42,500 person-years of active duty military service will have been performed by federal employees from October 11, 2002, through September 30, 2004, it said. 10. Guidance Issued on Children's FEHB Benefit The Office of Personnel Management has sent out additional guidance on a 2000 law mandating that federal employees comply with court rders arising from a divorce mandating them to provide Federal mployees Health Benefits coverage to children. OPM, noting that the law does not address annuitants, said that employees subject to such orders are not allowed to make any changes that would affect their children's FEHB coverage after retirement. OPM pointed to a notice telling the retirement system that a court order is in effect and told agencies they should include a copy with the retirement application package. Retirement systems personnel will flag the file so that the retiree cannot make an enrollment change to a self-only plan, cancel or suspend enrollment, or change to an HMO that does not serve the area where each child lives. OPM also provide guidance to agencies on complying with standard instructions concerning an employee's obligation to provide health insurance coverage for children. 11. Switching Coverage No Longer Mandatory OPM's guidance on the court order issue also told agencies that they must determine, when an employee is enrolled in an HMO, whether each hild is in the plan's service area. It noted that prior policy required agencies to change an employee enrolled in an HMO that does not serve each child's area to the Blue Cross and Blue Shield basic option. However, the new guidance told agencies to determine in that situation if there is a reciprocity agreement allowing enrollees of one HMO to receive services from another. If such an agreement exists, the employee may remain in the HMO. However, if there is no agreement, the employee must change to a fee-for-service plan. If the employee fails to make the change, the agency will change the coverage to Blue Cross. OPM further now allows employees involuntarily enrolled to make a belated enrollment in another plan if the employee was prevented from enrolling or changing enrollment due to circumstances beyond the employee's control. 12. Salary Group Meeting Ahead The Federal Salary Council, a group of agency and outside compensation experts who serve as the chief advisers to senior administration officials on the general schedule locality pay system, has scheduled a meeting for September 27. The group typically is relatively dormant except in the fall, when it prepares an annual report that in turn goes to a higher-level body known as the President's Pay Agent. The salary council oversees the salary surveys used in determining how the available money for locality pay is divided up among localities and makes recommendations on technical and policy issues that arise. For example, the salary council last year worked out certain changes to be effective in 2005 in the boundary lines for some GS locality zones, and paved the way for dropping three localities--Orlando, St. Louis and Kansas City, Kansas--next year and putting employees working in them in the catchall "rest of the U.S." locality. The group also recommended that Memphis, Phoenix, Austin, Buffalo, Raleigh, N.C. and Louisville, Ky. be studied to possibly become new separate localities, although when that might happen is currently unclear. The pay agent accepted those recommendations, which are to be carried out through regulation. 13. The Brand New In-Print 2005 CSRS & FERS Retirement Planning Guides Are Now Available For Immediate Shipment! Plus--Get FEDweek's The Book of Answers FREE! We are Fully Stocked and Ready for Your Agency Bulk Orders. Go to http://fedweek.sparklist.com/t/294937645/821888/1/0/ to place your order now or continue reading about our special FREE Offer. ********************************************************************* Our 2nd Printing/Shipment of The Brand New 2005 CSRS & FERS Retirement Planning Guides Have Just Arrived From Back From the Press. ** FEDweek Reader Special FREE Offer ** Order Yours Now and We'll Ship Them Straight Back out To You--Along With FEDweek's The Book of Answers FREE! http://fedweek.sparklist.com/t/294937645/821888/1/0/ That's right, when you place an order for either one of our brand new 2005 CSRS or FERS Retirement Planning Guides you will receive FREE,The Book of Answers, one of FEDweek's most sought after and sold books. Here's just a few reasons why: ********** A Few Facts About FEDweek's Book of Answers It will help you determine what you magic retirement age should be http://fedweek.sparklist.com/t/294937645/821888/1/0/ This comprehensive publication contains complete answers, expert advice and guidance to nearly every question, situation or life event that a federal employee or retiree experiences, that's why this publication is appropriately nicknamed "The What If Book". What if? is a question we have heard time and again from our readers who simply don't know what effect a change in status (marriage, divorce, illness, outside work, leaving government, etc.) will have on their government job and benefits. What if I get married-or divorced? What if I leave government before I'm eligible to retire? What if I want to supplement my government salary with outside income? What if I'm sidelined by a serious medical problem? What if I come back to work after retirement? The list goes on and on. Yet there has never been a resource designed to directly address these questions as they are really asked. Until now. Take a look at just some of the questions that this valuable book answers: What If... I Hit a 'Magic Number'? My Family Members Marry or Hit Magic Numbers? I Get Married? I Get Married After Retirement? We Adopt or Have a Child? I'm Divorced or Separated? I Move? I Die or a Family Member Dies? I Have a Financial Emergency? I Want to Supplement My Salary? I'm Offered a Gift? I Accumulate Frequent Traveler Credits on Official Travel? I'm Offered a Buyout to Leave Service? I Have a Financial Claim Against My Agency? I or Family Members Have a Medical Emergency? I Exhaust My Leave? My FEHB Claim Was Denied? I Have a Life-Threatening Condition? I'm Permanently Disabled? I Die While Receiving Compensation Benefits? I Want To Change or Drop My Life Insurance Coverage? I Want to Change or Drop My Health Insurance Coverage? I Become Eligible for Medicare? I Want to Name or Change Beneficiaries? I Leave Government Before Retirement Eligibility? I'm Offered Early Retirement? I Retire? I Don't Get My Annuity Payment On Time? I Need Help? I Return to Government Employment after Retiring? I Retired With a Buyout? I Retired on Disability? My Reemployment Ends? I Die While Reemployed? REMEMBER, THE BOOK OF ANSWERS IS 100% FREE WHEN YOU PLACE YOUR ORDER FOR EITHER ONE OF OUR BEST SELLING 2005 CSRS OR FERS RETIREMENT PLANNING GUIDES. The answers you'll receive in The Book of Answers compliments perfectly with your new retirement planning guide. There couldn't be a better match of books. ****************************************************************** Go to http://fedweek.sparklist.com/t/294937645/821888/1/0/ to place your order for Your 2005 CSRS or FERS Retirement Planning Guide now and get your FREE Book of Answers. ******************************************************************* The 2005 CSRS & FERS Retirement Planning Guides http://fedweek.sparklist.com/t/294937645/821888/1/0/ Now in their seventh year of print (and over 500,000 sold), these CSRS and FERS Retirement Planning Guides truly help you fully understand your federal retirement. These planning guides simplify the retirement planning process, helping you calculate your annuity (with plenty of examples), warn you about possible reductions in your annuity, tell you how Social Security fits into the picture, and what to do about health and life insurance. In short, they contain everything you need to know to make your federal retirement a success. These 2005 CSRS & FERS Retirement Planning Guide are NOT Dot.com downloads or government handouts or pamphlets, they are In-print comprehensive and easy-to-understand planning guides that were written and edited by our veteran-team of federal retirement planning experts in the field. Here are some of the key features and updates that these 2005 retirement planning include: A step by step guide to embarking on the retirement journey A description of the new long-term care program, with explanations of potential traps for those close to retirement A quick reference guide to benefits your survivors would stand to receive on your death A description of how Tricare-for-Life might replace FEHB as your health benefits provider Details on how to carry retirement and other benefits into retirement and how you can change those benefits after retirement An easy to follow guide to understanding annuity statements How the new TSP investment, rollover, withdrawal and other rules will affect you before and after retirement Latest information on COLA rates and policies, payments to survivors and other benefit rates The latest information on Social Security benefit rates and eligibility rules The latest information on FEGLI, FEHB, service crediting for retirement purposes and other vital retirement-related issues ALSO IN THESE 2005 CSRS & FERS RETIREMENT PLANNING GUIDES: How to calculate your annuity (with plenty of easy-to-follow examples) Eligibility requirements Different retirement types (regular, early, deferred, special disability) Credit for military service Deposits and redeposits Cost of living adjustments The effect of divorce on annuities Social Security The Thrift Savings Plan Taking health and life insurance into retirement Annuity taxes Survivor benefits And much more! ********** Go to http://fedweek.sparklist.com/t/294937645/821888/1/0/ to place your order now and get your FREE Book of Answers Handbook shipped to you immediately. ********** Other Ways to Order: You may also call our toll-free order line at (888) 333-9335 to place your order for these retirement planning guides: The 2005 CSRS Retirement Planning Guide The 2005 FERS Retirement Planning Guide Or you may also mail your order with payment of $13.95 ($9.95 plus $4.00 s&h) to: FEDweek P.O. Box 5519, Glen Allen, VA 23058. Extra FREE Bonus You will receive one FREE copy of The Book of Answers per order. This is just another way we can say thanks for reading FEDweek and doing business with us. FEDweek 11551 Nuckols Rd. Suite L Glen Allen, VA 23059 (804) 288-5321 Website: http://www.fedweek.com [EMAIL PROTECTED] --- You are subscribed to fedweek as [EMAIL PROTECTED] To unsubscribe, send a blank email to [EMAIL PROTECTED] ------------------------ Yahoo! Groups Sponsor --------------------~--> Make a clean sweep of pop-up ads. Yahoo! Companion Toolbar. Now with Pop-Up Blocker. Get it for free! http://us.click.yahoo.com/L5YrjA/eSIIAA/yQLSAA/BCfwlB/TM --------------------------------------------------------------------~-> Yahoo! Groups Links <*> To visit your group on the web, go to: http://groups.yahoo.com/group/kumpulan/ <*> To unsubscribe from this group, send an email to: [EMAIL PROTECTED] <*> Your use of Yahoo! Groups is subject to: http://docs.yahoo.com/info/terms/
