The year that began with the longest partial government shutdown in history ended on a surprisingly high note for federal employees. In addition to a pay rise, President Trump signed into law the most significant improvement in federal benefits in decades: 12 weeks of paid parental leave for the birth, adoption, or foster care of a child. There were also other changes, both good and bad: health care costs are rising, there are changes to the investment program of the Savings Plan and some programs to reconcile work and personal life. they disappear.
These are the highlights:
Wages will rise. From the first full salary period of 2021, which begins on January 5, the federated will see an increase of 2.6% of their basic remuneration and an increase of 0.5% on average distributed in the different payment areas of the locality. This translates into an average 3.1% rise for federal workers. In late December, the Office of Personnel Management published the 2021 salary tables and definitions of locality pay areas that described the exact salary rates in various regions of the country. OPM also published a practice overtime pay calculator to help federates figure out their precise increases.
New parents will receive free time. From October 1, federal workers will be entitled to 12 weeks of paid parental leave for the birth, adoption or foster care of a child. This new advantage places the feds in the ranks of high-performing private sector entrepreneurs and should help agencies in the war for talent. OPM is now working out the details on how the program will be administered. Everett Kelley, the national secretary-treasurer of the American Federation of Government Employees, described the deal as a “time of cultivation,” noting that the union has been advocating for profit for decades.
Your healthcare costs go up. OPM estimates that employees will pay an average of 5.6% more for their health insurance premiums in 2021, but the government’s share of the Federal Employee Health Benefits Program premiums also increases (a 3, 2%). The government will also cover an average of 70% of the total premium costs of each entrant. Of course, the actual increase in insurance costs for people depends on what plans they have taken out. And there’s also some good news: FEHBP will include more benefits for mental health treatment and substance abuse, and plans will offer more services to help enrollees quit.
Teleworking is having success. The Trump administration has tried to curb telecommuting across the government, despite established practice in some agencies and strong promotion of OPM. More recently, the Social Security Administration decided to end its six-year telework pilot program in November, leaving approximately 12,000 workers struggling to make alternative arrangements. Officials cited two reasons for Commissioner Andrew Saul’s decision: long waiting times for customers and the inability to assess employee performance. However, an assessment by the inspector general found that teleworking really improved the productivity of employees of teleservice centers. Congress has urged SSA to reconsider the decision.
Employees will have a new TSP withdrawal option. In September, the agency that administers the federal government’s retirement savings program (401 (k)), the Thrift Savings Plan, implemented the TSP Modernization Act, which allows participants to make multiple partial withdrawals after the separation. Federal workers ages 59 and a half and older can take up to four days off per year, according to the new rules. Participants can also choose whether their withdrawals come from their Roth accounts, traditional accounts, or a combination of both. Those who have already started receiving monthly payments can change the amount and frequency of their payments at any time.