Basic Information • 2013 Furlough 11 days or 88 hours • 15 July 2013 through 30 September 2013 • Part-time technicians will be pro-rated • Newly hired technicians will be pro-rated based on start date if hired • Will impact annual leave accrual and within-grade increase • May be eligible for Unemployment Compensation
PAY AND BENEFITS • What is the Order of Precedence if an employee’s pay is insufficient to permit all payroll benefit deductions ?
Order Of Precedence • Retirement – Deductions for Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) • Social Security (OASDI) Tax • Medicare Tax • Federal Income Tax • Basic Health Insurance Premium • Basic Life Insurance Premium (including Federal Employees’ Group Life Insurance -- FEGLI -- Basic premium) • State Income Tax • Local Income Tax • Collection of Debts Owed to the U.S. Government
Order Of Precedence • Court-Ordered Collection/Debt • Child Support (5 CFR 581.102(d), 42 U.S.C. 666(b) and 42 U.S.C. 659(d) (2). • Alimony (5 CFR 581.102(d) and 42 U.S.C. 659(d) (3). • Bankruptcy • Commercial Garnishments • Optional Benefits • Health Care/Limited-Expense Health Care Flexible Spending Accounts • Dependent-Care Flexible Spending Accounts • Dental • Vision • Health Savings Account • Optional Life Insurance Premiums (FEGLI Optional Benefits) • Long-Term Care Insurance Premiums • Thrift Savings Plan (TSP) • Loan Payments • Basic Contributions • Catch-up Contributions
Order Of Precedence • Other Optional Benefits • Other Voluntary Deductions/Allotments • Military Service Deposits • Professional Associations • Union Dues • Charities • Bonds • Personal Account Allotments (i.e. to savings or checking account • Additional Voluntary Deductions (on first-come, first-served basis) • IRS Paper Levies
INSURANCE AND FURLOUGH • Federal Employees Health Benefits (FEHB). • Premiums continue if pay is sufficient. No prorated premiums due to reduced work hours. • If pay is insufficient, options are: • Terminate coverage. • Continue – incur debt or pay premiums directly to DFAS. • If coverage terminated, may re-enroll within 60 days of returning to sufficient pay status. If you miss this, you must wait for next open season or have an eligible QLE. • Furlough is not QLE – cannot cancel and/or change plan or option…unless you waived premium conversion.
INSURANCE AND FURLOUGH • If you waived Premium Conversion and you elect to cancel coverage, be aware: • There is NO 31-day temporary extension of coverage. • Must wait for next open season or have a QLE to re-enroll. • If you separate without re-enrolling, not eligible for TCC. • If injured on the job and qualify for OWCP benefits while coverage is cancelled, no health coverage to continue with workers compensation. • If you retire while coverage is cancelled, no health coverage to take into retirement. • Reminder: Cancellation is a break in the 5-year participation requirement to take health benefits into retirement. • If you die while coverage is cancelled, no coverage for survivors even if entitled to a survivor annuity.
INSURANCE AND FURLOUGH • Federal Dental & Vision Program (FEDVIP) • Premiums continue if pay is sufficient. • If pay is insufficient, two premiums deducted on the following pay period. • Otherwise Direct Bill could be an option. • Website: www.BENEFEDS.comor call 1-877-888-3337 • Flexible Spending Accounts (FSA) • Allotments continue if pay is sufficient. • If pay is insufficient, expenses cannot be reimbursed until allotments are restarted. Outstanding allotments would be recalculated based on your election & number of pay periods remaining in the benefit period. • Website: www.FSAFEDS.com or call 1-877-372-3337
INSURANCE AND FURLOUGH • Federal Long Term Care Insurance Program (FLTCIP) • Eligible claims will continue to be paid. • Premiums continue if pay is sufficient. • Coverage will terminate if premiums are not paid. • You have option to change to direct billing or pay via EFT (electronic funds). Contact Long Term Care Partners at 1-800-582-3337. • Website: www.ltcfeds.com
INSURANCE AND FURLOUGH • Federal Employees Group Life Insurance (FEGLI) • Coverage continues up to 12 months in nonpay status without cost to you. • However, premiums will be deducted as long as there is enough pay in the pay period to cover the full premium. • National Guard Association of United States (NGAUS) • Premiums continue if pay is sufficient. • If pay is insufficient: • Basic/Suppl. Disability – premium waived if nonpay status is less than 30 days. • TermLife/GuardLife – premium waived if nonpay status is less than 90 days. • No waiver of premium for ValuLife and Universal Life. Only option is direct-bill or insurance coverage will lapse.
TSP AND FURLOUGH • What will happen to my TSP contribution? • Deduction based on percentage -- decreases in direct proportion to basic pay. Example: Biweekly salary is $1,000; you contribute 10%. 1) Before Furlough: $1,000 x 10% = $100 2) Furlough 2 days per pay period: $800 x 10% = $80
TSP AND FURLOUGH(Continued) • Deduction based on set dollar amount -- remains the same. Example: Biweekly salary is $1,000; you contribute $100. 1) Before Furlough: $1,000 - $100 2) Furlough 2 days per pay period: $800 - $100
TSP AND FURLOUGH • Should I terminate my TSP? • Traditional TSP is tax deferred. Stopping could increase AGI and income tax liability. • Earnings compound over time. Stopping, even for a short time, will cause you to lose money. • FERS employees will lose agency matching contributions (loss of free money). • Should I consider a financial hardship withdrawal? • Penalized for 6 months from contributing to TSP. • Considered taxable income and may also be subject to the 10% early withdrawal penalty tax. • Cannot be repaid; TSP account permanently reduced. • If FERS, will not receive any agency matching contributions.
TSP AND FURLOUGH • Should I take a loan? • Can take a loan even if furloughed on periodic basis (one or two days per pay period). • You borrow from yourself. You repay the loan plus interest; therefore, continue to accrue earnings as you repay it back. • Repay through payroll deduction. Agency required to deduct the required loan payment. • Responsible for keeping loan payments current or risk taxable distribution. • You can continue to contribute to your TSP. If FERS, you continue to receive agency matching contributions.
TSP AND FURLOUGH • Already have a loan? • Remember loan payments continue. Keep loan payments current or risk a taxable distribution. • May be able to reamortize (adjust) the term of the loan. • Cannot already be at maximum term limit (5 years for general purpose loan and 15 years for residential loan). • Lower payments; but repayment period extended. • If financial situation improves, could reamortize again to shorten the term of the loan (will increase amount of loan payment). • Additional Information • Website: www.tsp.gov • ThriftLine: 1-877-968-3778
Other Things You Need to know about your Technician Benefits • May agencies deny or delay within-grade or step increases for General Schedule and Federal Wage System employees during a furlough? It depends on the length of the furlough. • GS employees for advancement to steps 2, 3, and 4 who are furloughed more than 2 workweeks during the waiting period would have his or her within-grade increase delayed by at least one full pay period. -See 5 CFR 531.406(b). • WG, WL & WS – more than 40 hours will affect step 2
The accumulation of nonpay status hours during a leave year can affect the accrual of annual leave and sick leave. Full Time Technicians: • For example, when a full-time employee with an 80-hour biweekly tour of duty accumulates a total of 80 hours of nonpay status from the beginning of the leave year (either in one pay period, or over the course of several pay periods), the employee will not earn annual and sick leave in the pay period in which that 80-hour accumulation is reached. • If the employee again accumulates 80 hours of nonpay status, he or she will again not earn leave in the pay period in which that new 80-hour total is reached. • At the end of the leave year, any accumulation of nonpay status hours of less than 80 hours is zeroed out so that the accumulation for the next leave year starts at zero. For part-time employees, leave accrual is prorated based on hours in a pay status in each pay period; thus, time in nonpay status reduces leave accrual in each pay period containing such time (5 CFR 630.303 and 5 U.S.C. 6307).
The accumulation of nonpay status hours during a leave year can affect the accrual of annual leave and sick leave. (continued) • Part Time Technicians: • For part-time employees, the rule blocking accrual of leave based on the • accumulation of nonpay status hours (5 CFR 630.208) does not apply. • Instead, leave accrual for part-time employees is prorated based on hours • in a pay status in each pay period; thus, time in nonpay status reduces • leave accrual in each pay period containing such time (5 CFR 630.303 and • 5 U.S.C. 6307).
Effects of Furlough on LWOP Employees • Since LWOP is a nonpay status the furlough will have no impact unless the technician returns to duty. • If returns to duty after July 15, 2013 requirement for 11 days or 88 hours of furlough must be implemented.
Effect of Furlough on Retirement • Retirement annuity benefits under the Civil Service Retirement • System (CSRS) and the Federal Employees Retirement System • (FERS) are generally not impacted during an Administrative • Furlough of 30 days or less. • Both CSRS and FERS retirements are based on an employee’s • high-three average pay and their years of creditable service. Both • CSRS and FERS allow service credit for up to 6 months of nonpay • status in any calendar year. • High-3 average salary used to compute CSRS and FERS annuities will • generally not be affected as it is computed based on the “rate of pay” • in effect during a nonpay or partial pay status rather than actual pay.
Tracking Furlough Days • SF50 – Mass action – Furlough code 471 with beginning and ending date • Time and attendance will be coded “KE”(Furlough) • Supervisor must track furlough days for technicians
Track Your Pay and Benefits • Leave Earnings Statements https://mypay.dfas.mil/mypay.aspx • Make changes to your FEHB, FEGLI, and TSP benefits go to Army Benefits Center-Civilian (ABC-C) at www.abc.army.mil or call 1-877-276-9287. • Copies of SF50’s, effective date of Within Grade Increase and more at "MyBiz“: https://compo.dcpds.cpms.osd.mil/
Department of Labor at: http://www.labor.mo.gov/DES/ Human Resources Office is required to provide furloughed federal employees with an SF-8, if in a nonduty status for seven or more consecutive days. You must contact the Human Resource Office if it is determined by management that you will be in furlough status for seven or more consecutive days. If furloughed for 2 days or 16 hours a pay period work hours have been reduced. You may be eligible for the Shared Work Program. Shared Work Program through Department of Labor. Our agency is working on this and will notify all eligible technicians if this program is an option. Department of Labor - Unemployment
Contact the HRO Services Section with any questions or concerns with your employee benefits. • Gayla Propst, (573) 638-9892 • SGT Kim Falter, (573) 638-9500 Ext. 7497 • SGT Justin Doherty, (573) 638-9500 Ext. 7494 • SPC Mark Jarvis (If your last name starts with A to L), (573) 638-9500 Ext. 7499 • Leigh Ann Smith (If your last name starts with M to Z), (573) 638-9500 Ext. 7496