Federal Employee Benefits Overview: Health, Retirement, and Insurance Programs

New Employee Benefits 101 Federal Employee Benefits Retirement Systems and Retirement Related Programs Quick Links HQ AFPC/DP2BB

Overview Federal Employees Health Benefits (FEHB) Federal Employees Group Life Insurance (FEGLI) Federal Employees Dental & Vision Insurance Program (FEDVIP) Flexible Spending Accounts (FSAFEDS) Federal Long Term Care Insurance Program (FLTCIP) Beneficiary Forms Federal Employee Retirement System (FERS) Civilian Deposit/Redeposit Military Deposits Thrift Savings Plan (TSP) Agile, Innovative, and Responsive Fueling the Fight!

Federal Employees Health Benefits (FEHB) Coverage is NOT automatic Enrollment Opportunities - You can stop, start, or change elections (via GRB Platform) Within 60 days of appointment (newly hired or rehired) Open Season (2nd Monday in November through 2nd Monday in December) Qualifying Life Event (QLE) Elections are effective at the beginning of the following pay period Employee and Government premiums Full time employees pay approximately 25% of the premiums and the government pays the difference Part time employee s premiums are prorated based on bi-weekly tour of duty Premium Conversion Pre-tax if enrolled Enrollment is automatic unless employee elects to waive Cannot cancel or make changes w/o a QLE or Open Season Employees may elect coverage under Self Only, Self & Family, or Self Plus One Pre-taxed benefit if participating in Premium Conversion Participation in FEHB meets the Patient Protection and Affordable Care Act, Public Law 111-148, minimum essential coverage (MEC) requirement 5 year enrollment requirement to continue into retirement (TRICARE counts) Temporary Continuation of Coverage (TCC) available to separating employees and dependents Agile, Innovative, and Responsive Fueling the Fight!

Federal Employees Group Life Insurance (FEGLI) Voluntary - may elect to waive, cancel, or reduce at anytime Types of Coverage: Basic Base Salary rounded to next $1,000 + additional $2,000 Option A Additional $10,000 Option B - Up to 5 multiples of your base salary Option C Family coverage (up to 5 multiples) New employees are automatically enrolled in Basic coverage Optional insurance coverage must be elected within 60 days of: Eligibility (newly hired or rehired) Experiencing a QLE (proof of QLE required) Providing medical information must wait 1 year after last waiver of coverage & obtain a physical & OFEGLI approval 5 year enrollment requirement to continue into retirement Infrequent Open Seasons (most recent - September 2016) Agile, Innovative, and Responsive Fueling the Fight!

Federal Employees Dental & Vision Insurance Plan (FEDVIP) Coverage is NOT automatic Employee pays 100% of the premium Elections must be made, via BENEFEDS, within: 60 days of appointment (newly hired or rehired) 60 days of a QLE Open Season (2nd Monday in November through 2nd Monday in December) Supplemental Insurance Do not have to be enrolled in FEHB, but must be eligible for FEHB Contact Information: www.benefeds.com 1-877-888-FEDS (1-877-888-3337) Agile, Innovative, and Responsive Fueling the Fight!

Federal Employees Flexible Spending Account (FSAFEDS) Provides the ability to pay for certain out-of-pocket expenses with pre-tax dollars Health Expenses Certain expenses not covered by your health care insurance Dependent Care Expenses Preschool Summer day camp Before or afterschool programs Child or adult care Saves an average of 30% a year Reduces taxable income Must be eligible for FEHB but, you do not have to be enrolled Contact Information: www.fsafeds.com 1-877-FSAFEDS (372-3337) Agile, Innovative, and Responsive Fueling the Fight!

Federal Long Term Care Insurance Program (FLTCIP) Helps pay for services such as: Chronic Care Home Care Nursing Home Assisted Living Facility Provides coverage/benefits to assist you in your everyday life when you are no longer capable of providing care for yourself such as: Eating Bathing Dressing Not disability or short term medical care Cost varies by age and options elected Contact Information: www.ltcfeds.com Fax: 1-866-921-4510 Agile, Innovative, and Responsive Fueling the Fight!

Beneficiary Forms Beneficiary forms are not mandatory; if no form on file, benefits will be paid in the Legal Order of Precedence: 1) Spouse, 2) Children, 3) Parents, 4) Next-of-Kin, 5) Estate Certain beneficiary forms must be mailed into the Benefits & Entitlements Service Team (BEST) with original signatures Documents must be clean and free of error, mark outs, white outs, write overs, etc. Require 2 witness signatures Witnesses can not be the beneficiary(ies) Types of forms SF-3102, Designation of Beneficiary Federal Employees Retirement System (original signature required) SF-1152, Designation of Beneficiary Unpaid Compensation of Deceased Employee (original signature not required) SF-2823, Designation of Beneficiary Federal Employees Group Life Insurance (original signature required) TSP-3, Designation of Beneficiary Thrift Savings Plan (mail original to TSP) Agile, Innovative, and Responsive Fueling the Fight!

Retirement System and Retirement Related Programs

Federal Employees Retirement System (FERS)

Federal Employees Retirement System (FERS) Social Security Act of 1983 mandated all Federal employees hired after December 31, 1983, to pay social security taxes FERS became effective January 1, 1987 Covers employees first hired in a retirement covered position, on or after January 1, 1984, and before January 1, 2013 Three-tiered retirement system Employees contribute .8% of their base salary to FERS and 6.2% to social security Employees are encouraged to contribute to TSP in order to maximize agency matching contributions Agile, Innovative, and Responsive Fueling the Fight!

FERS-Revised Annuity Employees (FERS-RAE)/Further Revised Annuity Employees (FERS-FRAE) FERS-RAE became effective January 1, 2013 Employees covered by FERS-RAE contribute 3.1% of their pay to the FERS retirement system in addition to FICA deductions Employees first hired from January 1, 2013 to December 31, 2013 Employees covered under regular FERS, CSRS, or CSRS-Offset on December 31, 2012, are excluded from FERS-RAE coverage FERS-FRAE became effective January 1, 2014 Contribute 4.4% of their pay to the FERS retirement system in addition to FICA deductions Employees first hired on or after January 1, 2014 Employees covered under regular FERS, FERS-RAE, CSRS, or CSRS- Offset on December 31, 2013, are excluded from FERS-FRAE coverage Agile, Innovative, and Responsive Fueling the Fight!

FERS Civilian Deposits and Redeposits Civilian Deposits: Payment for retirement deductions, plus interest, that were not withheld during a period of employment for service potentially creditable under FERS Must be paid to receive credit for eligibility and annuity purposes Deposit service performed after January 1, 1989, is not creditable Civilian Redeposits: Repayment of retirement deductions that were previously withheld and refunded, plus interest Must be paid to received credit for annuity; otherwise, will only receive credit towards eligibility FERS employees are not required to make a redeposit to receive service credit for retirement eligibility; however, it may negatively impact the employee s annuity if not repaid Agile, Innovative, and Responsive Fueling the Fight!

FERS Military Deposits Military deposits performed after 1956: Cost is 3% of the FERS employee s military base pay Calculation of deposit performed under the Uniformed Services Employment and Reemployment Act (USERRA) of 1994 is based on the military earnings or the civilian salary the employee would have received, whichever is less NOTE: Deposit includes interest, unless completed within the grace period Grace period - 3 years after the first date of hire, or after the return to duty date if service was performed under USERRA Military deposits must be paid prior to the effective date of separation, to include retirement Agile, Innovative, and Responsive Fueling the Fight!

FERS - Military Retired Pay If receiving military retired pay, the military service cannot be credited, unless the retired pay was awarded: On account of a service-connected disability either incurred in combat with an enemy of the United States or caused by an instrumentalityof war and incurred in the line of duty during a period of war, or Under the provisions of Chapter 1223, Title 10, U.S.C. (pertaining to retirement from a reserve component of the Armed Forces) May elect to waive military retired pay to have the service computed in the civilian retirement Military retired pay is waived upon civilian retirement Agile, Innovative, and Responsive Fueling the Fight!

Age and Service Requirements for FERS Retirements Early, DSR, or Special Retirement Age Any Age 50 Optional Retirement Service 25 years 20 years Age Service MRA 60 62 30 years 20 years 5 years Deferred Retirement Age 62 MRA 60 Service 5 years 10 years 20 years 10 years MRA Agile, Innovative, and Responsive Fueling the Fight!

Determine your Minimum Retirement Age (MRA) Your MRA is If your birth year is Before 1948 55 years 1948 55 years, 2 months 1949 55 years, 4 months 1950 55 years, 6 months 1951 55 years, 8 months 1952 55 years, 10 months 1953 to 1964 56 years 1965 56 years, 2 months 1966 56 years, 4 months 1967 56 years, 6 months 1968 56 years, 8 months 1969 56 years, 10 months After 1969 57 years Agile, Innovative, and Responsive Fueling the Fight! 17

FERS - Computation of Annuity Basic annuity is based on length of service and high-3 average salary, including locality pay May receive length of service credit for unused sick leave if retiring on an immediate annuity. NOTE:Is not used to meet retirement eligibility High-3 Average Salary = highest earned basic pay during any 3 consecutive years (no overtime, bonuses, etc.) FERS Annuity Formula = 1% X High-3 X number of years of service. NOTE: Employees retiring at age 62 w/ 20 years of service calculated at 1.1% Permanent reduction for MRA + 10 retirements of 5% for every year under the age of 62; ineligible for a FERS Annuity Supplement May postpone MRA+10 retirement to avoid reduction Agile, Innovative, and Responsive Fueling the Fight!

FERS Annuity Supplement Eligible to receive if retiring under MRA + 30 or 60/20 Employees who receive a Voluntary Early Retirement Authority (VERA) are eligible upon reaching their MRA Substitutes for the Social Security part of the total FERS benefit until age 62 Approximates the Social Security benefit earned under FERS Subject to earnings test MRA + 10 not eligible for supplement Not subject to Cost of Living Adjustments (COLA) Subject to the Social Security Earnings Test ($18,240 for 2020) Agile, Innovative, and Responsive Fueling the Fight!

TSP Up Contributions A voluntary, tax deferred, retirement savings and investment plan for Federal employees and members of the uniformed services Elective deferral limit is $19,500 for 2021 Age 49 or younger Elective deferral limit is $26,000 for 2021 Age 50 (or turning 50 in 2021) and older Spillover Similar types of savings and tax benefits as a 401k New employees automatically contribute 5% FERS employees receive 1% automatic agency contributions and up to 4% agency matching contributions Elections/changes can be made at anytime Traditional TSP - Pre-tax, taxes applied upon withdrawal Roth TSP - After-tax, versus at the time of withdrawal Employees may contribute to both Roth and Traditional TSP Agile, Innovative, and Responsive Fueling the Fight!

Quick Links BENEFEDS (Dental & Vision) https://benefeds.com 1-877-888-3337 Federal Long Term Care Insurance Program (FLTCIP) https://www.ltcfeds.com 1-800-582-3337 Flexible Spending Account (FSAFEDS) https://fsafeds.com 1-877-372-3337 Government Retirement & Benefits (GRB) Platform https://w45.afpc.randolph.af.mil/AFPCSecureNet40/CheckPortal.aspx myPers https://mypers.af.mil Office of Personnel Management (OPM) https://www.opm.gov Thrift Savings Plan (TSP) https://www.tsp.gov/index.html 1-877-968-3778 Total Force Service Center (TFSC): 1-800-525-0102 Agile, Innovative, and Responsive Fueling the Fight!

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