Not affiliated with The United States Office of Personnel Management or any government agency

Not affiliated with The United States Office of Personnel Management or any government agency

Federal Employee Benefits You May Be Missing Out On—Here’s What to Watch For

Key Takeaways

  • Federal employees may overlook valuable benefits that can greatly enhance their financial and healthcare security. Understanding these benefits ensures that you maximize your workplace compensation.
  • Many of these benefits require active enrollment or adjustments during specific timelines, so it’s important to stay informed about deadlines and eligibility windows.

Are You Missing Out on Hidden Federal Employee Benefits?

If you’re a federal employee, you likely know about some of the perks that come with the job. But did you know that you could be overlooking significant benefits that could save you money and offer protection for your future? It’s easy to miss out on some of the lesser-known programs, especially if you don’t actively research your options or take action during enrollment periods. Let’s break down some key areas that you should keep an eye on to ensure you’re not leaving any benefits on the table.

The Federal Employees Health Benefits Program (FEHB)

The Federal Employees Health Benefits (FEHB) program offers comprehensive health insurance options for federal employees, retirees, and their families. One major advantage of FEHB is the variety of plans available. However, if you don’t actively review your options during the annual open season, you might miss out on more cost-effective or better-suited plans.

Open season occurs once a year, typically from mid-November to mid-December. This period is your chance to switch to a different health plan, make changes to your coverage, or add eligible family members. If you’ve experienced any changes in your health needs or family situation, this is the time to review your options carefully. Keep in mind that if you retire as a federal employee, you may be able to continue your FEHB coverage into retirement, a significant benefit that should not be overlooked.

Flexible Spending Accounts (FSAFEDS): Saving on Healthcare and Childcare

Flexible Spending Accounts (FSA) allow you to set aside pre-tax dollars for healthcare and dependent care expenses. The FSAFEDS program is open to most federal employees, and it can save you a considerable amount of money by lowering your taxable income. Many employees forget about or underestimate the value of this benefit, but it’s a great way to cover out-of-pocket medical costs or childcare expenses.

The catch? You need to re-enroll every year during the open season, which happens at the same time as FEHB enrollment. FSAFEDS is a use-it-or-lose-it system, meaning you must spend the money in your account by the end of the year, though there are some carryover provisions depending on the plan. Be sure to carefully calculate how much you’ll need for eligible expenses to avoid forfeiting any funds.

Retirement Benefits: Are You On Track?

The Federal Employees Retirement System (FERS) is one of the most valuable benefits for federal workers, but many employees don’t fully understand how it works. Your FERS benefits are made up of three components: a basic annuity, Social Security, and the Thrift Savings Plan (TSP). If you’re not paying attention to these components, you might not be maximizing your retirement potential.

It’s crucial to regularly review your TSP contributions. The government automatically contributes 1% of your salary, but you can receive up to a 5% match if you contribute enough of your own money. Make sure you’re contributing at least enough to get the full match—it’s essentially free money! Review your investment choices periodically to ensure they align with your retirement goals and risk tolerance.

If you’re nearing retirement, keep track of your eligibility and timeline. For most employees, the earliest retirement age with full benefits is between 55 and 57 years, depending on when you were born, though you’ll need at least 30 years of service to qualify. If you’re unaware of these timelines, you could miss out on maximizing your benefits.

Long-Term Care Insurance: Planning for the Future

Many people don’t think about long-term care until they need it, but federal employees have access to the Federal Long Term Care Insurance Program (FLTCIP), which is an important option to consider. This program provides coverage for services like nursing home care, home healthcare, and assisted living, which are not typically covered by health insurance or Medicare.

Applying for FLTCIP can be done at any time, but you’ll need to go through an underwriting process unless you apply within 60 days of becoming eligible. It’s much easier to qualify when you’re younger and in good health, so it’s wise to look into this sooner rather than later.

Life Insurance Coverage: Are You Adequately Protected?

Federal employees are automatically enrolled in Federal Employees’ Group Life Insurance (FEGLI), but many don’t realize they have options for additional coverage. FEGLI is term life insurance, meaning it only provides coverage while you are employed or retired, and the coverage can change as you age.

During open seasons, you can increase your coverage or make adjustments to your plan. It’s important to evaluate whether the standard coverage amount is enough for your family’s needs. If you have dependents, debts, or other financial responsibilities, you might need more than the basic coverage provided by FEGLI.

Transportation and Commuting Benefits

Federal employees who commute to work might not know about the Transit Subsidy Program, which offers reimbursement for public transportation costs. This can save you hundreds of dollars annually if you commute by train, bus, or metro. Depending on where you live, you may be eligible for up to $300 per month in transit benefits, so it’s worth checking with your agency’s human resources department to see if you qualify.

Additionally, federal employees in some locations can take advantage of parking subsidies. If you’re driving to work or using carpool services, these subsidies can help offset your commuting costs.

Tuition Assistance and Student Loan Repayment

Education benefits are another area where federal employees may be missing out. Many agencies offer tuition assistance for job-related courses or degrees, which can cover up to 100% of tuition costs in some cases. Additionally, some federal agencies participate in the Student Loan Repayment Program (SLRP), which offers repayment assistance for certain employees with federal student loans. However, these programs are typically limited to specific fields or roles, so be sure to ask your HR department if you qualify.

Take Advantage of Annual Leave and Sick Leave

Finally, don’t forget about the time-off benefits that come with your federal job. Federal employees earn 13 days of sick leave per year, with no limit on how much you can carry over. Sick leave can also be credited toward your retirement, adding extra months or even years to your service record. You also earn 13 to 26 days of annual leave, depending on your years of service. It’s essential to take time off to recharge, but also to plan for how you’ll use this benefit to maximize your work-life balance.


Make Sure You’re Not Leaving Benefits Behind

Federal employment comes with many valuable benefits, but it’s easy to miss out if you’re not paying attention. Whether it’s healthcare, retirement savings, or life insurance, staying informed and proactive is key to getting the most out of your benefits package. Don’t forget to mark your calendar for open season and other critical deadlines, so you can make the necessary adjustments and ensure that you’re fully utilizing all the benefits available to you.

Krista Wilson Disclaimer

Contact Krista Wilson

Search for Public Sector Retirement Expert.

Receive the Best advice.

PSR Experts can help you determine if Public Sector Retirement is right for you or if you should look for alternatives.

The Best Advice creates
the best results.

Recent Articles

More Articles by Krista Wilson

Confused About the TSP? Here’s What Federal Workers Need to Know About Making Smart Moves

Key Takeaways: Understand Your Options: The Thrift Savings Plan (TSP) is loaded with features that can benefit federal employees, but...

Splitting Federal Benefits in Divorce? How Your Pension, TSP, and Insurance Could Be Affected

Key Takeaways: Divorce can significantly impact your federal benefits, including your pension, Thrift Savings Plan (TSP), and insurance policies.It’s essential...

How Federal Employees Can Get Expert Retirement Advice for a Smoother Transition

Key Takeaways: Federal employees can significantly benefit from expert retirement advice to ensure they’re making the most of their FERS...

Search For Public Sector Retirement Expert

Receive the Best advice.

PSR Experts can help you determine if
Public Sector Retirement is right for you or if you should
look for alternatives.

The Best Advice creates

the best results.

Subscribe to our Newsletter

"*" indicates required fields

Our Readers Deserve The Best PSHB and USPS Health Benefits Guidance

Licensed insurance agents who understand PSHB, Medicare, and USPS Health Benefits Plan are encouraged to apply for a free listing.

This field is for validation purposes and should be left unchanged.

Book Phone Consultation

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Get In Touch

Stay up to date on the latest information about Public Sector Retirement.

The Best Advice Creates The Best