What Every Young Federal Employee Should Know
What Every Young Federal Employee Should Know
Hindsight is always 20/20—especially when it comes to retirement planning. If you are just beginning your career as a federal employee, there’s no time like the present to consider your future financial plans. Federal Educators has four tips that can help you make the most of your goals.
- FEGLI Life Insurance
Did you know that new federal employees can enroll in the government’s life insurance programs without submitting an exhaustive health questionnaire? This offer is only available within 60 days of hire, so even if there is no current need for life insurance, it might be worth considering. This type of accessibility could help with unexpected health problems and future family planning much more than private sector coverage.
- Military Time
If you have previous military service, you may be eligible to apply that time served towards your federal service. This benefit allows veterans with active-duty military service time to receive credit for their time served. “Buying back” time increases years of civil service while simultaneously increasing retirement age eligibility and annuities. We recommend buying in with military time within the first few years of your federal career. However, if you choose to delay, it could cost you much more in interest charges.
- Maximize TSP
This benefit may be the most important way to jumpstart your financial goals! The earlier an employee consistently contributes to their TSP, the longer the funds have to achieve investment compounding. For 2022, the maximum contribution is $20,500. If 50 years old or older, the total is $27,000. Contribute as much as you comfortably can but at the minimum, take advantage of the 5% government match.
- Beneficiary Forms
Make sure you complete and submit these key beneficiary forms – Form TSP-3 (for TSP benefits), Form SF 1152 (for unpaid compensation and unused annual leave), and Form SF 2823 (FEGLI life insurance).
For a more comprehensive plan as you begin a federal employee career, the Federal Educators team can provide you with tailored resources and tools. Call the Tampa office at (813) 755-7037 or request a free benefits analysis today.