Federal Employee Benefits: What You’re Missing

Are you sure you’re getting the most from your federal employee benefits?

If you’re a federal or postal worker, you’ve got access to one of the strongest benefit packages in the country—but many employees miss out simply because no one ever explained the details. Let’s fix that right now.

This guide lays out exactly what you need to know in clear, simple language. You don’t need to memorize regulations—you just need a few minutes and the right information.

What Are Federal Employee Benefits?

Your benefits package is more than just a job perk. It’s your safety net. It protects your health, supports your family, and helps you retire with confidence.

Here’s what’s included:

1. Health Insurance – FEHB & PSHB

If you’re a federal employee (non-postal), you’re most likely enrolled in FEHB—the Federal Employees Health Benefits Program. It offers a wide range of private insurance plans, and the government pays part of the premium.

If you’re a postal employee, your coverage is changing. Starting January 1, 2025, you’ll move into PSHB—the Postal Service Health Benefits Program. This new program requires some retirees to enroll in Medicare Part B in order to keep coverage.

Review your enrollment requirements now, especially if you’re over age 64.

2. Dental and Vision – FEDVIP

Dental and vision benefits are not included in FEHB or PSHB. You must enroll separately in FEDVIP during Open Season or after certain life events.

3. Life Insurance – FEGLI

The Federal Employees’ Group Life Insurance (FEGLI) provides:

• Basic life insurance (automatic unless waived)

• Optional coverage for yourself, spouse, and children

Many people carry too much FEGLI coverage into retirement and overpay. Make sure your policy matches your needs and budget.

4. Retirement Systems – FERS or CSRS

If you were hired before 1984, you may be under the Civil Service Retirement System (CSRS). Most employees today are under FERS—the Federal Employees Retirement System. It includes:

• A monthly pension (annuity)

• Social Security benefits

• The Thrift Savings Plan (TSP)—your retirement investment account

5. TSP – Thrift Savings Plan

TSP lets you invest for retirement using either:

• Traditional (pre-tax) contributions

• Roth (after-tax) contributions

You choose where to invest, and your agency may match your contributions. This is one of the best low-cost retirement accounts available today.

If you’re not contributing at least 5%, you’re leaving free money on the table.

6. Paid Leave

Your benefits also include:

• Sick leave (no expiration)

• Annual leave (use or lose)

• Paid holidays

• Paid parental leave (up to 12 weeks)

FEHB vs PSHB – What You Need to Know

Here’s a quick comparison:

If you’re retiring from the Postal Service, check now whether you must enroll in Medicare Part B or risk losing coverage.

Mistakes That Cost You

Here are common benefit mistakes we see:

• Not enrolling in Medicare Part B when required under PSHB

• Dropping FEHB during retirement without realizing you can’t get it back

• Overpaying for FEGLI when private insurance could be cheaper

• Leaving TSP money in the G Fund without understanding your options

• Skipping Open Season and sticking with a plan that no longer fits your needs

All of these can reduce your benefits—or your paycheck.

5 Steps to Maximize Your Federal Employee Benefits

Step 1: Review Your Options During Open Season

Open Season runs every November–December. During this time, you can:

• Change your health plan (FEHB or PSHB)

• Enroll or adjust dental/vision coverage (FEDVIP)

• Sign up for FSAFEDS (flexible spending accounts)

Check plan brochures, compare costs, and ask for help if needed.

Step 2: Check Your TSP Contributions

Make sure you’re contributing at least 5% to get the full agency match. Consider using Roth TSP for tax-free income in retirement.

Step 3: Estimate Your Retirement Income

Use the FERS calculator to project your:

• Monthly annuity

• Social Security

• TSP withdrawals

If you don’t know what your income will be, you can’t plan properly.

Step 4: Review Your Life Insurance

Log into OPM’s FEGLI calculator and see how much coverage you have and what it costs. In many cases, reducing your Option B coverage can save you money.

Step 5: Schedule a Benefits Review

Your agency HR may help with questions—but they can’t give financial advice. That’s where we come in. The Benefit Coordinators provide real, personal guidance for federal and postal employees.

The Bottom Line

You’ve earned these benefits. They’re part of your compensation. But too many people let them go unused, misunderstood, or mismanaged—especially when it comes to retirement planning.

You don’t need to become an expert. You just need the right expert on your team.

Ready to Make the Most of Your Benefits?

Whether you’re new to federal service or counting down to retirement, we can help you protect your paycheck and plan for your future.

Book your Discovery Call now
Get clarity, confidence, and a custom plan designed just for federal and postal employees.