BEP provides a Comprehensive Benefits Package:

CSRS/FERS

Prior to 1984, the Civil Service Retirement System (CSRS) was the civilian retirement system for most Federal employees. The retirement annuity formula for CSRS is roughly 2% for each year of service times your high-3 (an average of your highest three consecutive earning years).

The Social Security Amendments Act of 1983 required newly hired or rehired (with more than a one-year break in federal service covered by CSRS) employees be covered by social security. On 1 January 1987, the Federal Employees Retirement System (FERS) became effective. The FERS system is a three tiered system: a basic government pension that is approximately 1% for each year of service times your high-3 average salary; a Thrift Savings Plan (TSP) which provides employees with a pre-tax savings plan; and complete coverage under the Social Security system.

Most new employees today are covered by the FERS retirement system. For more comprehensive information, you may visit the OPM website on Retirement

The Federal Employees Health Benefits (FEHB) program helps protect you and your eligible family members from the expenses of illness and accident. It is a voluntary program and you have 60 days from the date of your appointment to enroll in the plan of your choice or waive coverage.

There are three basic types of health benefit plans available:

• fee-for-service,
• HMOs, and
• point of service

You and the Government share the cost of your enrollment. Premiums and coverage are adjusted annually. There is an annual opportunity (open season) to make changes in your enrollment. This coverage is also available to Federal retirees who were enrolled in an FEHB plan for the five years of service immediately before retirement. For more comprehensive information, you may visit the OPM website on Health Benefits.

Federal Employees Group Life Insurance (FEGLI) offers Federal employees an opportunity to participate in a group plan that offers low rates and the convenience of payment through payroll deduction. FEGLI is term insurance. Participation is voluntary; however, if you are eligible, you are automatically covered for Basic Life unless you waive coverage. The Government pays one-third of the cost of the Basic Life Insurance. Basic Insurance equals the greater of $10,000 or your actual rate of annual basic pay (rounded up to the next $1,000) plus $2,000. Accidental death and dismemberment benefits are a feature of basic life for employees. There is also an extra benefit for employees under age 45.

Three insurance options are available to employees with Basic coverage:

• Option A - additional coverage of $10,000;
• Option B - additional coverage up to five times your rate of pay; and
• Option C - Family coverage ($5,000 for spouse and $2,500 for each eligible dependent child).

For more comprehensive information, you may visit the OPM website on Life Insurance.

The Thrift Savings Plan (TSP) is a retirement savings and investment plan for Federal employees covered by the Federal Employees Retirement System (FERS) and the Civil Service Retirement System (CSRS). The TSP offers:

• before tax savings and tax deferred investment earnings low administrative and investment expenses
• a choice of three investment funds
• interfund transfers
• an attractive loan program
• a choice of withdrawal options

The TSP is a defined contribution plan. The retirement income that you receive will depend upon how much you (and your agency, if you are a FERS employee) have contributed to your account during your working years and the earnings on those contributions. The contributions that you make to your TSP account are voluntary and separate from your contributions to your FERS or CSRS annuity. Newly hired employees must wait a certain period of time before they become eligible to participate in TSP. There are two open seasons held each year: May 15 - July 31 and November 15 - January 31.

TSP is an integral part of FERS employee retirement package. FERS participants can contribute up to 10 percent of their basic pay each pay period. FERS employees are also entitled to receive Agency contributions. Once a FERS employee is eligible to participate in TSP, the Agency contributes an amount equal to 1% of basic pay each pay period. When FERS employees begin contributing to their TSP account, the Agency makes matching contributions that apply to the first 5% of pay each pay period. Your contributions are matched dollar for dollar for the first 3% and 50 cents on the dollar for the next 2%.

Although CSRS employees do not receive Agency matching or 1% contributions, they may contribute up to 5% of their basic pay to the TSP. For more comprehensive information, you may visit the TSP webpage.