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The Benefits of Working for Uncle Sam |
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The Benefits of Working for Uncle Sam
Want to make sure retirement treats you well? Work for Uncle Sam, and those golden years could have a little added shine. Not only are federal retirement benefits portable, but being the largest employer provides the government excellent leverage in securing benefits for its employees.
Take the example of Jane Smith, a fictional but possible example of a former federal employee. After college, Jane was hired by a large federal agency where she gained experience and insight into the workings of the federal government. After eight years of federal service, she left the federal government with a salary of $73,000 to work for a private-sector company that offered her different opportunities for growth in her chosen field. Portable Benefits Despite her departure, Jane still would have earned the following portable benefits:
While employed by the federal government, Jane could have taken advantage of additional benefits that include: Disability Benefits: There are three types of disability benefits. These include:
Federal Employees Group Life Insurance (FEGLI): The government has a group life insurance benefit available to employees that can provide basic insurance equal to an employee's salary plus $2,000, as well as additional coverage of up to five multiples of basic salary. This benefit can be converted to an individual policy upon separation and also contains a living benefit for employees having a life-threatening illness. Learn more about FEGLI. Health Insurance: Federal employees have many types of health insurance coverage to select from during annual open season periods. These include traditional fee-for-service coverage, HMOs and the new high-deductible health plans with healthcare savings accounts. While employed and after immediate retirement, the government contributes an average of 75 percent of the cost of the premiums. Former federal employees can continue this coverage for up to 18 months after leaving federal service. Employees may also use flexible spending accounts to pay for out-of-pocket medical and dependent care expenses. Learn more about these benefits from the US Office of Personnel Management and the FSAFEDS. Annual Leave and Holidays: New full-time employees earn 13 days per year for the first three years of employment. Employees with three to 15 years of employment earn six hours per pay period (20 days per year) and employees with 15 or more years of employment earn eight hours each pay period (26 days per year). Part-time employees earn annual and sick leave in proportion to the hours worked. Unused annual leave (not to exceed 240 hours) may be carried over into the next leave year. When an employee resigns or retires from federal service, he is paid any unused annual leave in a lump sum payment. Learn more about federal leave policies. |