Headlines about "Government plans - federal"
Gathered from the web by the editors at BenefitsLink.com.
Same-Sex Partner Benefits Bill for Federal Employees Is Up for Consideration
"[The Senate Homeland Security and Governmental Affairs Committee is moving forward with a same-sex measure] for federal employees. The committee will hold a markup session for the 2011 Domestic Partnership Benefits and Obligations Act (S. 1910) ..., which opens retirement, health, transportation and other benefits to same-sex domestic partners of government workers." (Government Executive)
Federal Government Rolling Out Roth Option to 3.3 Million Employees This Week
"The sign-up rate for workplace Roth accounts in the federal government's huge Thrift Savings Plan (TSP) could be higher than in the private sector because of a twist on the Roth benefit that will be available to military personnel stationed in combat zones. Military personnel are granted a 'combat zone tax exclusion' for any month served in a combat zone, meaning their pay for that month is excluded from gross income subject to income tax.... While the TSP is ready to receive Roth contributions as of this week, availability to federal workers depends on rollouts by more than 100 government payroll offices." (Reuters)
Can Part-Time Retirement Save the U.S. Postal Service?
"[P]olicymakers are closely watching recent proposals that would institute work-retirement hybrid programs for all federal workers. Both the House and Senate have approved proposals to help ease eligible employees into retirement slowly -- allowing agencies such as [the U.S. Postal Service] to delay hiring and training new employees. While the House bill would amend U.S. code to allow [federal employees] to continue working part time while partially retired, a lesser-known but similar setup already is available under an Office of Personnel Management regulation." (Government Executive)
[Opinion] Time to Control Runaway Military Personnel Costs
"[W]hile the military's retirement program serves only a small minority of the force, it provides an exceedingly generous benefit, often providing 40 years of pension payments in return for 20 years of service. As a result, the program now costs taxpayers more than $100 billion per year, an exceedingly steep price tag for a program hampered by serious flaws. This number is projected to double by 2034." (Tuscon Sentinel)
Federal Employees Would Pay More for Pensions Under House Bill
"The legislation ... incorporates measures approved by the House Oversight and Government Reform Committee in late April requiring current federal employees to pay 5 percent more toward their retirement over the next five years, beginning in 2013. Members of Congress would have to contribute an additional 8.5 percent to their defined benefit plan during the same time period." (Government Executive)
Taking Auto-Enrollment One Step Further: Bill Would Provide Auto-Increase in Employee Contributions by Federal Employees
"Sen. Daniel Akaka, D-Hawaii, has sought input on a bill tying automatic enrollment in the government's 401(k) style retirement plan to annual increases in the amount of money employees contribute to those retirement accounts." (Government Executive)
Bill Requiring Higher Employee Contributions Under Federal Retirement Plan Advances in House
"The legislation requires current federal employees to pay 5 percent more toward their retirement over the next five years, beginning in 2013. Members of Congress would have to contribute an additional 8.5 percent to their defined benefit plan during the same time period." (Government Executive)
Senate Passes U.S. Postal Service Overhaul
"The legislation ... allows the agency to offer buyout and early retirement incentives to 100,000 employees, switches to five-day delivery if officials cannot come up with other cost savings within two years, and restructures a requirement that the Postal Service prefund its retirement health benefits with more than $5 billion annually.... New amendments passed into the bill this week scale back workers� compensation benefits, curtail USPS executive compensation to a level on par with Cabinet secretaries and address the backlog of USPS retirement claims at the Office of Personnel Management." (Government Executive)
Senate Votes Down Forced Retirement for Postal Service Employees
"A measure that would have required eligible postal service employees to retire without buyout incentives failed in the Senate.... The amendment ... would have reduced the cash-strapped agency's expenses by reducing its large percentage of retirement-eligible workers. It failed in a 33-65 vote." (Government Executive)
U.S. Postal Service Reform Being Considered in Senate Would Affect Pay and Benefits
"Measures that would prohibit collective bargaining at the U.S. Postal Service, require retirement-eligible employees to retire, and increase the amount workers contribute to their health benefits and life insurance are among the 39 amendments the Senate plans to vote on as part of the 21st Century Postal Service Act (S. 1789). Other amendments would limit executive pay at USPS, remove language scaling back workers' compensation benefits, and curtail the amount agencies can spend on government conferences." (Government Executive)
Delay in Implementing Roth Feature Affects Most Federal Employees
"The Defense Finance and Accounting Service, which administers payroll services to several agencies, including the White House, will not be ready to offer employees the added retirement investment option by May 7, the date of the official launch, as we have reported. A Washington Post report put the hold-up into perspective, noting, 'at least three-fifths of federal workers' will face delays." (Government Executive)
House Panel Approves Part-Time Retirement for Federal Employees
"A House panel voted unanimously Wednesday to advance legislation that would allow retirement-eligible employees to work part time ... The bill, H.R. 4363, would amend U.S. law to allow federal employees to continue working part time while partially retired [meaning that retirement benefits can begin without the need to separate from service first and then become rehired]." (Government Executive)
U.S. Senate Considers Postal Service Pension Reform
"[The Senate has] began considering the 21st Century Postal Service Act, which would allow for cash buyouts up to $25,000 among incentives to get as many as 100,000 postal employees to retire early." (Pensions & Investments)
GSA Boosts Mileage Reimbursement Rate for Federal Employees
"The General Services Administration is increasing the 2012 mileage reimbursement rate for federal employees who use their private vehicles for work, according to the agency. The rate for cars will be 55.5 cents per mile, an increase of 4.5 cents over the current rate." (Government Executive)
Backlog Reduced for Starting Federal Pensions But Many Retirees Still Waiting
"OPM has struggled for decades to process federal retirees' pension claims quickly and accurately. As a result, tens of thousands of new retirees wait months to receive their complete annuities -- some wait more than a year -- and in the meantime they struggle to get by on reduced interim pensions. Some of those interim pensions are less than half of what retirees are owed." (Federal Times)
Thrift Savings Plan Roth Option Delayed for Pentagon Employees
"The Federal Retirement Thrift Investment Board, which oversees the TSP, said earlier this week that not all federal agencies have completed the transition required to implement the Roth 401(k) and some would need additional time after May 7. The Roth option will be available to Marine Corps members in June; to Defense and Veterans Affairs Department civilians in July; and to Army, Navy and Air Force service members by October; according to the Defense Finance and Accounting Service, which cites complicated pay systems as the reason for the delay." (Government Executive)
Tech Nerds Create 'Fantasy League' for Investments by Federal Thrift Savings Plan Participants
"'The 2008 market crash pretty much led us into doing the site because people are out there looking for answers, and it's almost mind-boggling the number of federal employees who don't understand TSP,' said [a] federal employee. Participants create anonymous usernames and fake accounts and compete in groups to see whose TSP posts the highest returns.... As in fantasy sports, players make trades and transfers under the same rules as the real TSP[.]" (Government Executive)
Federal Thrift Savings Plan Sets May 7 Start Date for Roth Option
"The Roth TSP option offers an important new tool for federal civilian employees and uniformed service members in managing their retirement income by providing greater flexibility in the tax treatment of contributions now and in the future[.]" (Pensions & Investments)
Federal Employee Retirement Claims Backlog Is Down Since January
"The Office of Personnel Management processed more retirement claims in March than in the previous two months, making a dent in its backlog despite an increase in claims, according to agency figures.... The agency received 7,090 new claims in March, 2,090 more than it expected and 675 more than were submitted in February. OPM has received 34,984 new submissions since the beginning of the year." (Government Executive)
Anti-Alienation Rule Won't Apply to Corrupt Congressional Representatives; No Federal Pensions for Future Blagojeviches
"The federal STOCK Act [signed by President Obama on Wednesday includes language] that would take away the federal pensions of people convicted of certain corruption crimes.... Though his state pension was stripped, [former Illinois Governor Rod] Blagojevich's family can continue to receive his pension from his time in Congress because his conviction didn't pertain to his time in the U.S. House. The [STOCK Act] doesn't take Blagojevich's pension away. But it would prevent pensions from being handed out in similar future cases." (Daily Herald)
Federal Government's Thrift Savings Plan Has Appeal, and a Few Holes, Too
"Whereas some 401(k) plans feature overwrought menus of options, extra layers of administrative fees, and costly, also-ran funds, the TSP is a marvel of rock-bottom costs and a utilitarian lineup. At the same time, however, the TSP doesn't offer exposure to a handful of important asset classes, and the lineup also features a few additional quirks of which participants should be aware." (Morningstar)
Senate Bill Introduced to Extend Variety of Federal Employee Benefits to Same-Sex Partners
"Legislation that would allow a range of benefits for same-sex domestic partners of federal employees gained a boost last week with the announcement of 20 new Senate co-sponsors and the endorsement of 35 organizations.... In addition to health benefits, under the Lieberman/Collins Domestic Partnership Benefits and Obligations Act, same-sex domestic partners of federal workers living together in a committed relationship could get retirement, family and medical leave and long-term care benefits." (The Washington Post; free registration required)
Are You Counting on Social Security?
"Here are some things [for federal workers and the rest of us] that are important to understand about Social Security to have a realistic view of the role it will play in your retirement[.]" (Government Executive)
Federal Thrift Savings Plan to Launch Roth Option Soon
"If ... tests are successful, the Roth option could come sometime in May or -- if testing proceeds faster than anticipated -- late April. The board has never given a firmer launch date than sometime during the second quarter of 2012." (Air Force Times)
Obama Administration Allows Health Coverage for Same-Sex Spouse
"The Obama administration has directed a health insurance company to cover the same-sex spouse of a federal employee. Gay rights advocates say they believe this is the first time such coverage has been allowed." (The Washington Post; free registration required)
Railroad Retirement System: CBO March 2012 Baseline (PDF)
The chart shows number of beneficiaries and total benefit outlays for the years 2012 through 2022. (Congressional Budget Office)
Another Hand in the Pockets of Federal Workers
"The latest attempt in a seemingly unending series of proposals to cut their pay or benefits is scheduled for a Senate vote Tuesday. And once again, the plan is to use their money for unrelated projects. In an amendment to the highway bill now being considered [the money saved by extending the federal pay freeze would] fund energy projects, an adoption tax credit, and tax deductions for college expenses and for state and local property taxes." (The Washington Post; free registration required)
Senate Approves Retirement-Work Hybrid for Feds
"Many federal employees are nearing retirement, so part-time work could pad federal agencies' coffers if they did not have to replace these employees entirely. Under the proposal, part-time employees would receive partial annuities and could earn additional retirement benefits proportional to the amount of time they work. Older employees also would be required to mentor younger new hires and help preserve agency knowledge." (National Journal)
Best Date to Retire Tips for Federal Workers
"The retirement date is a significant date for every federal employee -- both emotionally and financially. Here are some general guidelines for picking the right one." (Government Executive)
FAA Funding Law Permits Rollover of Amounts Received in Airline Carrier Bankruptcy
"The Federal Aviation Administration ... Modernization and Reform Act of 2012 (P.L. 112-95), signed by the President on February 14, 2012, contains provisions permitting qualified airline employees to roll over to an IRA amounts received in an airline carrier bankruptcy." (Wolters Kluwer Law & Business / CCH)
Considering the Roth TSP Option and Taxes in Retirement Planning
"[The Thrift Savings Plan board's] publications and presentations all contain the following advice: 'You may want to consult a qualified tax or financial adviser to help you decide if Roth is for you.' I decided to heed that advice and consult with two experts[.] [Questions and answers follow.]" (Government Executive)
[Opinion] State Health Insurance Mandates Now Total 2,262, Costs Go Up for Everybody
"Based on our annual analysis, mandated benefits currently increase the cost of basic health coverage from slightly less than 10 percent to more than 50 percent, depending on the state, specific legislative language, and type of health insurance policy." (The Council for Affordable Health Insurance)
DOMA Still Dogs Domestic Partners of Feds
"The Office of Personnel Management has been able to obtain some benefits for same-sex partners, but it's been hamstrung by the 1996 statute, which contains a section barring the federal government from granting benefits to same-sex couples." (Government Executive)
New Federal Accounting Rule for Contractor Pensions Could Cost DOD Billions
"The rule, which takes effect this week, requires the U.S. government to reimburse its contractors to a far greater degree for their employee pension costs. The Defense Department has not yet budgeted for the additional pension costs, but estimates they 'could be billions of dollars, conceivably[.]'" (Federal Times)
Administration Moves to Advance Benefits for Same-Sex Partners of Federal Workers
"t[T]e Obama administration is preparing to finalize regulations that would advance benefits for the same-sex partners of federal employees.... [T]he administration believes it must do what it can through regulation while still advocating related legislation, even when prospects for it are dim in this Congress." (The Washington Post; free registration required)
Administration Preparing to Finalize Regs Giving Benefits to Same-Sex Partners of Federal Employees
"According to [a Washington Post] article, under the regulations, federal employees would be able to get child-care subsidies for the children of a same-sex domestic partner. In addition, employees would get evacuation pay to cover their partner in the event of an emergency overseas. The regulations would also treat domestic partners like spouses for purposes of choosing an insurable interest option at retirement and same-sex domestic partners of federal employees would be eligible for noncompetitive federal jobs when a staffer returns from an overseas assignment." (Wolters Kluwer Law & Business / CCH)
Ensure your Plan Participants are Prepared for a Secure Retirement
Defined Contribution Conference, March 11-13, in Miami. Learn from your peers through presentations and discussions on plan design, communications, investment options and more. FREE registration for qualified plan sponsors. (Pensions & Investments)
Avoid the Common Mistakes Affecting Plan Loans Webcast
Earn CE credit while ERISA expert, Charles Lockwood, JD, LLM, explains the administrative issues that affect plan loans. Have questions? Charles will address them either during or after the webcast. March 22nd at 2pm EST. (ASC)
Federal Employee Pension Contributions to Be Increased
"New federal employees will pay 2.3% more toward their government pensions under a new deal approved by Congress." (PLANADVISER.com)
White House Pushes Semi-Retirements for Federal Workers
"President Obama's 2013 budget proposal calls on Congress to allow federal employees to work part-time while also collecting partial pension checks and earning partial retirement benefits for their part-time service. The benefits of the idea are twofold, proponents say. It would save money -- the administration estimates $720 million over the next decade -- by spacing out retirements and new hires. And it would help alleviate the government's brain drain problem by keeping experienced staff on board longer to mentor younger feds." (Federal Times)
Federal Workers' Pensions in Cross Hairs Amid Budget Battle
"There's more ahead, as moves to hold down government salaries mirror tightening at the state and local levels. Congress is considering extending a two-year federal pay freeze for another year, through 2013. Bills designed to reduce the federal workforce continue to be introduced. And another measure is pending that includes across-the-board requirements for more contributions to pensions." (Bloomberg via Pensions & Investments; free registration required)
[Opinion] Congress Gets Better Pension Deal than Federal Workers in New Bill
"Members of Congress will get more lucrative pensions than new federal employees under a little-known provision in the bill that extends payroll tax relief and unemployment insurance, the head of the American Federation of Government Employees said today." (American Federation of Government Employees)
Pension Perk Takes Hit As Congress Passes Reform Bill
"Tucked inside the measure that will give 160 million Americans an average $1,000 in tax cuts for the rest of the year is also legislation that reins in pensions for incoming legislators to put them on par with what other federal employees earn." (ABC News)
Congress Oks New Federal Employees' Pension Contribution Hike As Part of Payroll Tax Bill
"Federal employees hired after the end of this year will contribute more to their defined benefit pension plan under legislation extending the payroll tax cut and unemployment benefits approved by the House and Senate on Friday." (Pensions & Investments)
Payroll-Tax Deal Includes Pension Contribution Hike for New Federal Employees
"Under the agreement expected to be approved by both chambers Friday, new federal hires would contribute 3.1% of their pay to the $411.9 billion Federal Employees Retirement System, Washington. Current federal workers pay 0.8% of their salaries." (Pensions & Investments)
Military Vs. Civilian Pay in the Federal Budget
"Labor unions representing federal employees are disappointed with President Obama's fiscal 2013 proposal to end the two-year civilian pay freeze that began in 2011, since the suggested raise of 0.5 percent is negated by another proposal to increase the amount employees must contribute to their pensions by 0.4 percent annually for three years, beginning in 2013." (Government Executive)
[Opinion] The Trouble with Being 'governmental' ? Falling On the Wrong Side of This Definition Could Hurt
"[W]e know that the IRS has had difficulty in the past in deciding whether some of the following types of entities would qualify as governmental plan sponsors: A joint powers authority consisting of both governmental subdivisions and public nonprofit organizations; Certain charter schools; and Certain auxiliary organizations connected with State and community colleges and universities." (Focus on Public Benefits)
IRS and Treasury to Hold Town Hall/ Consultation Listening Meetings On Possible Approaches to Governmental Plan Guidance
"The issue is important to Federal, State, Local and Indian Tribal Governments, as well as their employees, because the statutory rules that apply to governmental plans are different from those that apply to nongovernmental plans. In addition, the Pension Protection Act of 2006 contained statutory changes related to plans maintained by Indian Tribal Governments. The IRS and Treasury are soliciting comments on proposed drafts issued in November 2011 of possible approaches to guidance in this area. Comments must be received by June 18, 2012. Input from the general public is also sought from discussions at town hall and consultation listening meetings." (U.S. Internal Revenue Service)
Upcoming Phone Forum: Governmental Plan Proposed Guidance, May 15, 2012
"Proposed drafts of the general guidance on possible standards for determining if a retirement plan is a governmental plan under section 414(d) of the Internal Revenue Code will be discussed." (U.S. Internal Revenue Service)
[Official Guidance] IRS Extends Comment Period for Guidance on Indian Tribal Government Programs
"The IRS is extending the time limit for commenting on guidance the agency issued regarding the application of the general welfare exclusion to Indian tribal government programs. Comments may now be submitted through March 14, 2012." (U.S. Internal Revenue Service)
[Official Guidance] Text of Proposed Regs Adding Roth Feature to Thrift Savings Plan for Federal Employees (PDF)
"The Thrift Savings Plan Enhancement Act of 2009 . . . authorized the [Federal Retirement Thrift Investment Board] to implement a qualified Roth contribution program described in section 402A of the Internal Revenue Code. This feature will allow participants to make TSP contributions on an after-tax basis and receive tax-free earnings upon distribution if (1) five years have passed since January 1 of the year in which they made their first Roth contribution, and (2) a qualifying event has occurred (i.e., attainment of age 591.2, permanent disability, or death). The TSP Roth feature is similar to a designated Roth account maintained by a 401(k) plan." (Federal Retirement Thrift Investment Board)
Bill Would Allow Federal Workers to Invest Annual Leave in Retirement Savings
"Federal employees typically may carry over up to 30 days of unused annual leave from one year to the next . . . . If the proposed change becomes law, the combined investment of annual leave and payroll withholding would have to remain within the maximum that participants can contribute toward their retirement savings in a year, currently $17,000 . . . ." (The Washington Post; free registration required)
Key Developments in the World of Federal Employee Benefits
"Another week, another round of legislative proposals aimed at reducing federal compensation. Government workers no doubt are wishing for another sort right . . . about now." (Government Executive)
Federal Employees Will Gain Roth Investment Option This Spring
Proposed rules set for publication on Wednesday lay the groundwork for a major change in the investment choices available to federal employees through the Thrift Savings Plan with the addition of a Roth alternative. (The Washington Post)
Oversight Committee Advances Major Federal Pension Reform
"The House Oversight and Government Reform Committee advanced . . . the largest cost-saving reform to federal employee pensions since the creation of the Federal Employee Retirement System in 1984. H.R. 3813, the Secure Annuities for Federal Employee Act, introduced by Oversight Subcommittee on Federal Workforce Chairman Dennis Ross, R-Fla., was approved by a vote of 22-16." (House Committee on Oversight and Government Reform)
[Guidance Overview] IRS Addresses Effect of Indian Health Services Eligibility on HSA Eligibility
"This Notice finally answers an HSA eligibility question that was especially troubling because, as with certain veterans benefits, the right to obtain medical services from an IHS facility is determined by status (e.g., membership in a federally recognized Indian tribe), and not by choice. The IRS approach resembles the one used to determine HSA eligibility for those eligible for VA medical benefits -- a solution that some of us anticipated as the best fit." (Thomson Reuters/EBIA)
House Panel to Consider Pension Contribution Hike for Federal Employees
"Federal employees, including members of Congress, would contribute 1.5% more toward their pensions under legislation to be considered . . . by the House Oversight and Government Reform Committee." (Pensions & Investments; free registration required)
GAO Report on Federal Employees' Compensation Act: Benefits for Retirement-Age Beneficiaries
"[GAO] examined (1) the characteristics and associated compensation costs of long-term, full-time FECA beneficiaries, for USPS and non-USPS employees; (2) how wage compensation benefits for retirement-age, long-term, full-time FECA beneficiaries compare with federal retirees' annuities (not including USPS employees); and (3) the experiences of states that limit state workers' compensation benefits for workers at retirement age." (U.S. Government Accountability Office)
IRS Issues Updated Version of Taxable Fringe Benefit Guide for Governmental Employers
"The IRS has updated its Taxable Fringe Benefit Guide for federal, state, and local government employers. The Guide was created to provide those entities with a basic understanding of the federal tax and reporting rules on a wide variety of fringe benefit topics, and was last updated in 2008." (Thomson Reuters/EBIA)
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