Job security and retirement are some federal government benefits. Employees can receive coverage from their start date at work until their retirement days. While there were changes over the years, the government has guaranteed their employees’ stability compared to work benefits from the private sector.
Today, we will feature the three main stable federal government pension benefits that make government employment secure and rewarding.
Employee Retirement Plan
Post-employment security plans are one of the main concerns of government employees. Current retirement benefit systems haven’t changed drastically. New changes implemented by the government are usually minor, and employees can still have a stable retirement future with minimal savings.
The current federal government benefits systems also ensure they have a good retirement life with regular federal government pension benefits to cover their basic needs. Their savings can be supplementary to their retirement benefits.
Federal employee coverage is from the government’s Federal Employees Retirement System or FERS. It covers three areas:
- Social Security Benefits
- Basic Benefit Plan
- Thrift Savings Plan
These benefits ensure good sustainability and stability from their active service days up to their entire retirement.
Health Insurance Coverage
Compared to the more limited health insurance options and range of private sector work, government benefits are more comprehensive. Employees do not have to worry as they are duly covered until and beyond retirement. This coverage is always in addition to the federal government pension plans to provide a complete benefits system.
The Federal Employees Health Benefits or FEHB Program takes care of these health insurance options under federal government benefits. They have 100 percent health premiums coverage and 50 percent coverage for immediate family members as well.
Retirement Income Coverage
Retirees will receive their annuities for their full retirement, with proper adjustments over time to make sure it covers current living expenses. It guarantees normal living for them and their families with a few major options on how to use their annuities in proportion to their spouses’ coverage.
The following major options for federal government pension include the spouse receiving a set 50 percent amount of the retiree’s annuity when they pass away. Employees have two other major options to choose from in using their annuities to benefit their spouses.
First is a 12.5 percent decrease for this annuity, resulting in a 75 percent amount given to the surviving spouse. The second is a 25 percent decrease of the annuity that will give a 100 percent share until the end.
In addition to this is the Thrift Savings Plan portion mentioned earlier that serves as an additional future source of funds for retirement. Your agency can set this up, paying 1 percent of the basic pay you receive for each period. You can change the maximum amount to up to 15 percent of the basic income. Think of this as an additional investment and savings for your future in addition to retirement annuities.
The Bottom Line
You’ve got the rest of your life ahead of you, and your federal benefits will work until your retirement days. Your retirement funds, health insurance, and spouse and family support can take care of your concerns, so you don’t have to worry about your future.
Planning for the future is best-taken care of today. And the best planning and advice for federal government benefits are available from My Federal Plan. We offer free consultations for all federal employees interested in further financial plans for seamless retirement. We are just a phone call away.