Articles by Lacie Harmon
Your Social Security Full Retirement Age (FRA) is an age set by Social Security, and it varies based on your year of birth. For those of us born between 1938 and 1942, it’s 65 and often some additional months, for those born between 1943 and 1959, it’s 66 and often some additional months. For those born 1960 or later, that age is 67.
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FRA is an important thing to understand for two reasons. First, it’s the age after which you are able to collect full Social Security benefits without penalty for collecting pre-FRA. Second, it’s the age at which you are able to earn unlimited income and also collect Social Security without any penalty.
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If you haven’t reached your FRA, the following rules apply this year:
You can earn up to $23,400 without penalty to your benefit.
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In the event you’re retiring some time during 2025, the rules are relaxed and your limits on earnings don’t begin until after you’ve retired. At that time, as long as you don’t exceed earnings of $1,950/mth. or perform “substantial services” while self-employed, no penalties are applied to your Social Security benefit. Amounts over that will be penalized $1 for every $2 that you earn over the limit. (Please note, the aforementioned rules also apply to the Social Security Special Supplement, which is the secondary pension paid out to federal retirees under age 62 who have met the age and service requirements). Read More ​
If you’re a post office employee or retiree, you’re probably aware by now that all USPS employees and retirees are in the process of moving into the new PSHB group plan this Open Season (which ends December 9th).
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Here’s a friendly reminder that the FEHB and PSHB coverages provide excellent value and coverage for you and your family: may this buoy your spirits if you’re one of those who will need to make changes this year –most will not – and here are the answers to some of the most frequently asked questions we at The Federal Benefits Group have been receiving:
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1. What’s going on, anyway?
As of January 1st, 2025, the Post Office is splitting off its group health plan from the rest of the federal government. The new group plan (PSHB) will cover USPS employees and retirees only and is under the umbrella of the Federal Employee Health Benefits (FEHB). This is the result of the Postal Service Reform Act of 2022 which was signed into law in April of 2022.
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2. What if I want to keep my old insurance plan?
In most cases, this will be automatic. The USPS mailed out notices the week of November 4th letting participants know they’ll be “crosswalked” into the plan most similar to the one they had under the wider FEHB. And, in cases where there isn’t an equivalent option available, OPM will automatically enroll individuals into the Blue Cross Blue Shield Service Benefit Plan FEP Blue Focus, which is the most affordable, no-fee, non-high-deductible plan available in PSHB in 2025. Read More
As you may have heard by now, major changes are coming to Post Office health insurance plans in 2025 as the result of the Postal Service Reform Act of 2022, but one part of this law, scheduled to go into effect Jan. 1, 2025, will require most future retirees to take on an additional expense in retirement, impacting their monthly finances for life.
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In order to help you think about your options and plan for retirement, here are the major considerations:
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1. If you will be age 64 or older by Jan. 1, 2025, the new law will not affect you.
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2. For all others, if you retire on or after Jan. 1, 2025, you will now be required to take Medicare Part B when you turn 65 or retire, whichever is later, in order to keep your Post Office health insurance. Read More
By: Lacie Harmon, The Federal Benefits Group
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If you’re a Post Office employee or retiree (annuitant), you’ve probably heard by now that the Post Office is set to transition to the Postal Service Health Benefits Plan (PSHB), which the Office of Personnel Management describes as a “new, separate program within the FEHB program”, splitting its group health plan from the rest of the federal workforce in January 2025. This split is a legal requirement resulting from the passage of the Postal Service Reform Act of 2022.
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The USPS is doing its best to ensure that employees and annuitants experience very little change to their coverage as a result. In fact, this is a necessity of the law under 5 U.S.C. 8903c(c)(2), which instructs that a health carrier’s “2025 PSHB plan must have equivalent benefits and cost sharing to the carrier’s 2025 FEHB plan”. Read More
Your Social Security Full Retirement Age (FRA) is an age set by Social Security, and it varies based on your year of birth. For those of us born between 1938 and 1942, it’s 65 and often some additional months, for those born between 1943 and 1959, it’s 66 and often some additional months. For those born 1960 or later, that age is 67.
FRA is an important thing to understand for two reasons. First, it’s the age after which you are able to collect full Social Security benefits without penalty for collecting pre-FRA. Second, it’s the age at which you are able to earn unlimited income and also collect Social Security without any penalty.
​
If you haven’t reached your FRA, the following rules apply this year:
You can earn up to $22,320 without penalty to your benefit.
In the event you’re retiring some time during this year, the rules are relaxed and your limits on earnings don’t begin until after you’ve retired. At that time, as long as you don’t exceed earnings of $1,860/mth. or perform “substantial services” while self-employed, no penalties are applied to your Social Security benefit. Amounts over that will be penalized $1 for every $2 that you earn over the limit. (Please note, the aforementioned rules also apply to the Social Security Special Supplement, which is the secondary pension paid out to federal retirees under age 62 who have met the age and service requirements). Read More
By Lacie Harmon, The Federal Benefits Group
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As you near retirement, you may be wondering whether or not to keep some or all of your Federal Employees’ Group Life Insurance (FEGLI) coverage. While many soon-to-be retirees decide to drop much of their coverage at retirement time rather than facing higher premiums, there are certain aspects of the coverage that are well worth considering hanging onto, depending on your age and health. What do I mean by this? Let’s break down the four parts of FEGLI and look at why keeping some of them in retirement can be an attractive option.
Basic
Basic FEGLI is coverage on the employee equal to annual salary rounded up to the nearest thousand, with a $2,000 bonus on top. For example, if an employee earns $74,500, their coverage is $77,000 ($74,500 rounded up to the nearest thousand + $2,000). Importantly, Basic FEGLI coverage is permanent life insurance, meaning that as long as you pay the monthly premium, which is deducted from your monthly pension once you’ve retired, you’re covered for life. And, here’s where the potential financial benefit comes in . . . Read More
By Lacie Harmon, The Federal Benefits Group
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Open Season is set for November 14th to December 12th, 2022. But, while managing your insurance choices can be far from easy, you can avoid pitfalls and increase your chances of having a successful Open Season if you avoid a handful of common mistakes:
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1. MISUNDERSTANDING WHEN CHANGES GO INTO EFFECT
While the changes you make to your benefits are added to a processing queue during Open Season, they don’t go into effect until the first day of your first full pay period of the following year. For most current employees, this will be Sunday, January 1, 2023. Enrollees will remain covered and receive the benefits of their old plans until the new plan goes into effect . . . Read More