A Treasure Trove of Goodies

By on April 20, 2009 in Current Events with 0 Comments

HR 1256 is a virtual treasure trove of goodies for federal employees, especially FERS folks. In an earlier article, I addressed the provision of the bill that would allow FERS employees to count sick leave in the computation of their annuities.

The bill also would let FERS employees who have left federal service and withdrawn their contributions pay them back upon their return and receive credit for that time in the computation of their retirement.

Currently FERS employees who withdraw contributions cannot pay them back and lose credit for the time the contributions represent in the computation of their retirement. This truly is a big deal for those FERS employees who have left early in their career and, thinking they would never return, took their money out.

In delivering pre-retirement seminars, I have met many FERS employees who have withdrawn their contributions. Usually it is just a few years of service, but I have met people who have taken out as much as eleven years of FERS contributions.

Another provision in the bill would allow agencies to automatically enroll new employees in the TSP. This would force employees to “opt out”, rather than the current situation where employees must opt in.

Some time ago I asked readers how they felt about automatic enrollment and what should be the default fund. A large majority of the respondents favored automatic enrollment. The funds most often mentioned as the default choice were the G fund or an age-appropriate L fund.
 

John Grobe’s latest book, The Answer Book on Your Federal Employee Benefits, has just been released by LRP Publications. The book is written in an easy to understand question and answer format and covers all areas of federal benefits from the perspective of an employee at various stages of their career. Order your copy at shoplrp.com.

© 2016 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

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About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.

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