Key Takeaways
- Federal employees have new options and enhancements in their benefits menu for 2024, providing more flexibility and coverage for different needs.
- Key updates include premium increases, new enrollment deadlines, and expanded options for healthcare, retirement, and financial planning, offering improved choices for employees across the board.
More Benefits, More Choices—2024 Just Raised the Bar for Federal Workers
Let’s be real—navigating the federal employee benefits system can feel like juggling a dozen plates. But, for 2024, the federal government has stirred the pot, adding a few more flavors to the mix that you’ll want to sample. Whether you’re reviewing your healthcare plan, figuring out your retirement strategy
- Also Read: New TSP Withdrawal Rules and What They Mean for Your Federal Retirement Plans
- Also Read: TSP Investment Moves That Could Help Federal Employees Retire on Their Own Terms
- Also Read: Early Retirement Myths Federal Employees Need to Stop Believing
Healthcare Options: A Fresh Plate of Choices for Federal Workers
If you’ve been following healthcare updates, you know 2024 has brought some significant shifts. The Federal Employees Health Benefits (FEHB) program, a cornerstone for many federal workers, is still standing strong—but there’s a twist. Premiums for FEHB have increased by an average of 13.5%, making it essential for you to compare plans more carefully than ever.
On the upside, postal employees are beginning their transition to the Postal Service Health Benefits (PSHB) program, designed specifically to fit the unique needs of postal workers. If you or a family member are impacted, this means automatically transferring from FEHB to PSHB unless you actively make a change during the Open Season (November 11 – December 9, 2024). If you’re happy with your current plan, you’re all set, but it’s always smart to double-check that your coverage still meets your needs for the coming year.
For Medicare-eligible retirees, 2024 brought some mandates you can’t ignore. If you’re 65 or older, enrollment in Medicare Part B is now required to maintain PSHB coverage. This integration between Medicare and PSHB offers comprehensive care but will likely increase your out-of-pocket expenses, so plan accordingly.
Retirement Perks: Tweaks to Help You Maximize Your Future
2024 is a banner year for retirement benefits as well. One of the most talked-about changes? The Thrift Savings Plan (TSP) has seen some updates to its contribution limits. If you’re under 50, you can now contribute up to $23,000 for the year, and if you’re 50 or older, there’s an additional $7,500 available in catch-up contributions. It’s a golden opportunity to boost your retirement savings while the market remains favorable.
The TSP has also revamped its investment fund lineup, with funds like the C Fund showing strong returns as of September 2024. These adjustments are especially beneficial if you’re nearing retirement and need to shore up your savings.
Additionally, federal employees now have more flexibility with withdrawal options. The new rules allow you to tailor your distributions better to your financial needs, which can help with long-term planning, especially if you’re trying to balance multiple income streams, like your FERS annuity, Social Security, and TSP withdrawals.
Speaking of FERS, if you’re enrolled in the Federal Employee Retirement System, you’ll want to take note of some tweaks. The average monthly FERS annuity now sits at $1,810, making it a reliable income stream, though you should still explore ways to supplement it for the long haul.
FEDVIP and FEGLI: Dental, Vision, and Life Insurance Worth Checking Out
Dental and vision insurance under the Federal Employees Dental and Vision Insurance Program (FEDVIP) got some enhancements in 2024, but there’s a small catch—former spouses are not eligible for coverage anymore. That means if you’re divorced, you’ll have to shop around for independent plans, as FEDVIP won’t cover you once you’re no longer tied to a federal employee.
Life insurance, under the Federal Employees’ Group Life Insurance (FEGLI) program, also saw premium increases, particularly for Option B. The higher costs as you age can make FEGLI feel like a bigger burden, so it’s a good idea to assess whether it’s still the right fit for your financial plans. Many retirees explore alternatives once the premium hikes kick in, but remember—keeping life insurance coverage post-retirement may still be beneficial, depending on your circumstances.
Special Perks for Law Enforcement Officers and Other Groups
If you work in law enforcement, 2024 has continued to support the Special Retirement Supplement for federal employees retiring under the FERS Law Enforcement category. This supplement bridges the gap until you’re eligible for Social Security and is a crucial benefit for those retiring early. You can retire after 20 years of service at age 50 or after 25 years of service at any age. That said, if you’re planning on retiring soon, now is the time to check the exact numbers, especially since the average retirement annuity for law enforcement workers continues to climb in 2024.
Social Security and WEP: 2024 Adjustments That Matter
Social Security plays a key role in retirement planning for federal employees, particularly those under FERS. For 2024, the maximum taxable earnings limit for Social Security contributions is $168,600, which is something to consider if you’re nearing retirement and want to maximize your benefits.
For those of you still under the Civil Service Retirement System (CSRS), you may already know that the Windfall Elimination Provision (WEP) can reduce your Social Security benefits. WEP can slice up to $498 per month from your benefits in 2024, depending on how many years of substantial earnings you have. It’s a factor worth considering if you’re relying heavily on Social Security in your retirement years.
What’s Cooking for the Future of Federal Benefits?
Let’s be honest—keeping track of all the updates for 2024 can feel like a full-time job. With so many changes in healthcare, retirement, and insurance benefits, it’s essential to stay informed and make adjustments when necessary. Whether it’s opting for a different health plan to save on premiums, contributing more to your TSP, or revisiting your life insurance options, small tweaks now can pay off big later.
Now is a great time to dive into the details, review your options, and ensure you’re taking full advantage of everything on the federal employee benefits menu this year. The choices are more diverse than ever before, so make sure you’re getting the most out of what’s available to you in 2024.
