Recent word from White House sheds some light on upcoming health insurance options only accessible by USPS workers.
Of the roughly 2.1 million federal workers currently employed by the US Government, about 653,000 of those are USPS employees, meaning USPS manages over 30% – but slightly less than one-third- of the entire civilian workforce of the federal government. Around 136,000 of these are what the US Postal Service calls “non-career” employees. These “non-career” employees are not able to participate in federal programs that are available to the “career” workers. These benefits include FEGLI, TSP, and a FERS- (or CSRS) pension. However, should a position covered under FERS be taken later, this “non-career,” or temporary, service can used to boost a FERS annuity similar to how military deposits work.
Although non-career postal workers don’t have full access to the Federal Employee Health Benefits (FEHB) program, USPS does provide a “Health Benefits Plan for Non-Career Employees.” Starting in 2025, all career USPS employees will be able to receive health insurance plans that are similarly only available if one is employed at the USPS. Postal workers will still have access to the same FEHB marketplace as other civilian feds at different agencies, just with some options available exclusively to them.
On August 29th, the Biden Administration released official guidance regarding the upcoming health benefits options for the postal service. It was announced that the USPS has to create an education program for its employees and retirees about how the exclusive health options will work. (So yes, USPS retirees with an FEHB plan will be able to switch to one of these postal-only health plans.) USPS leaders must also work with OPM to ensure the program is ready by the final months of 2024 – presumably in time for FEHB’s annual open season.
FEDVIP (vision and dental plans), FLTCIP (long-term care), FEGLI (life insurance), and flexible spending accounts (FSAs) will not be impacted for those who decide to change to their health coverage to one of these new choices. Besides that, not much is known for certain at this moment. USPS managers and union leaders have been “regularly engaging” to ensure as smooth a transition as possible.
—
Until Next Time,
The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
The FedLife Podcast is your in-depth, biweekly deep dive into the world of federal benefits and retirement planning. Hosted by federal benefits expert Ed Zurndorfer and Dan Sipe of Serving Those Who Serve, each 30-minute episode unpacks the complexities of FERS and CSRS retirement, FEHB and Medicare, survivor benefits, tax planning, and more. Designed for federal employees and retirees who want more than just the basics, FedLife goes beyond the headlines to explore the rules, nuances, and strategies that can make a meaningful difference in your retirement. Remember: it’s your Fed life, make it a great one.
The Fed15 Podcast is your weekly 15(ish)-minute briefing on federal benefits and financial planning, built specifically for federal employees and retirees. Hosted by Dan Sipe and Katelyn Murray of Serving Those Who Serve, each episode delivers clear, actionable guidance on topics like FERS and CSRS retirement, TSP strategies, FEHB, survivor benefits, tax planning, and more! Whether you’re five years from retirement or already there, The Fed15 helps you cut through the noise, avoid costly mistakes, and make confident decisions about your federal benefits.
