4 ms·

There's not a single "federal employee medical plan", there's a set of insurance plan choices like most large employers and you choose what level of risk/deduct

There's not a single "federal employee medical plan", there's a set of insurance plan choices like most large employers and you choose what level of risk/deductible and coverage you want for what you're willing to pay. Standard Flex Savings and Health Savings plans are also available. AFAIK you're eligible to sign up on day one of employment just like most employers. My wife is a fed, last year the government contributed $14k to our health insurance, which is pretty much in line with most plans from large companies. I've had developer jobs where the benefit plans were competitive or comparable to our federal benefits plan, we just stay on the federal plan because my wife doesn't plan on leaving federal service and the continuity is easier. The only advantage really is that there's a lot of federal employees on every possible plan so all the plans are pretty good compared to what you can get at smaller companies. If you work at a company of a 100 or more people, that company should be able to get you similar rates. I don't have first hand experience or much knowledge to speak to, but I have heard federal insurance plans are quite desirable for folks with expensive pre-existing conditions. The other reply is a bit dated too, there's no longer a real pension available to new employees. There are probably still long-term employees or retirees kicking around with those older pre-1987 retirement packages, but all recent hires are on a plan that's pretty much equivalent to a 401k (Thrift Savings Plan) + a Basic Benefits plan (which is pretty basic and you still pay into. It roughly equates to getting two Social Security payments instead of one). The bulk of a federal employee's retirement funds will come from contributions to their TSP plan.

vkou 9y ago
So, your medical plan evaporates the moment you stop working for most federal agencies? Just like my private employer's medical plan? And guaranteed pensions are no longer a thing? What is left as a justification for below-market salaries? Employment opportunities in government-dominated towns (which do not have healthy private-sector economies), and more job security?
- wtf_is_up 9y ago
  The justification for below-market salaries is that you aren't expected to actually produce anything and are almost impossible to terminate unless you commit fraud or harassment. This comes from first hand experience as a federal engineer for almost a decade.
  - vkou 9y ago
    My mother-in-law's first hand experience in handling medical treatment cases for VA for the past decade is that you're expected to handle more cases then you have the time to. You're also expected to do so, while wading through a waist-deep morass of technological, beurocratic, and managerial stupidity. In that agency, she can't just zone out and phone it in.
- etrevino 9y ago
  > So, your medical plan evaporates the moment you stop working for most federal agencies? Just like my private employer's medical plan? Yes. >And guaranteed pensions are no longer a thing? They pitch it as a three legged stool: social security, your 401k, and then a pension that pays out according to a formula (the amount you get in a year is calculated somewhat like pension := (1% of the average salary of the three highest paid contiguous years of service) * number of years of service, up to 20 (after 20 years the percentage goes down). Between the three legs of the stool you can probably get to about 60% of your income, which is supposed to be reasonable for retirement. > What is left as a justification for below-market salaries? Employment opportunities in government-dominated towns (which do not have healthy private-sector economies), and more job security? The salary isn't at all bad. For some specialties it's below market, but for the average joe it's pretty decent. But it's worth noting that, for me, the job security is key. I've made more money contracting, but contracts end, sometimes abruptly, and the peace of mind you get from having security is very valuable.
- evilduck 9y ago
  Yeah, basically. If your federal employment ends your medical benefits do as well. It's not like a professor's tenure or anything. But unlike the private sector, if you served for at least 5 years you can re-enroll after you reach retirement age and the government will pick up the "employer's costs" of your insurance once again. You'd still be paying the premiums out of pocket though (which is better than other jobs or Medicare if you can afford it). There is still a small guaranteed basic pension that federal employees pay into, but it's not really enough to retire on by itself. It's one part of their 3 part retirement plan. Couple it with Social Security (the second part) and you could probably scrape by and remain reasonably well fed and housed if you relocated somewhere rural and cheap, but if you plan on retiring and staying put you're going to have to save using the TSP (the third part) like anyone else saves with a 401k. I can't provide a blanket statement for why people are federal employees though, it's probably different in each industry. My wife is part of the scientific and regulatory side of the oil and gas industry and [benefits included] she doesn't earn substantially less than her private industry peers in similar scientific roles. And that industry is notorious for frequent and cut throat boom-bust cycles which brings it even closer to parity over the long haul. As a software developer though, not a chance. The desirability of the roles they have and the compensation even with benefits is not usually very attractive and the federal hiring process is bonkers compared to most companies.

vkou 9y ago

So, your medical plan evaporates the moment you stop working for most federal agencies? Just like my private employer's medical plan? And guaranteed pensions are no longer a thing? What is left as a justification for below-market salaries? Employment opportunities in government-dominated towns (which do not have healthy private-sector economies), and more job security?

wtf_is_up 9y ago
The justification for below-market salaries is that you aren't expected to actually produce anything and are almost impossible to terminate unless you commit fraud or harassment. This comes from first hand experience as a federal engineer for almost a decade.
- vkou 9y ago
  My mother-in-law's first hand experience in handling medical treatment cases for VA for the past decade is that you're expected to handle more cases then you have the time to. You're also expected to do so, while wading through a waist-deep morass of technological, beurocratic, and managerial stupidity. In that agency, she can't just zone out and phone it in.
etrevino 9y ago
> So, your medical plan evaporates the moment you stop working for most federal agencies? Just like my private employer's medical plan? Yes. >And guaranteed pensions are no longer a thing? They pitch it as a three legged stool: social security, your 401k, and then a pension that pays out according to a formula (the amount you get in a year is calculated somewhat like pension := (1% of the average salary of the three highest paid contiguous years of service) * number of years of service, up to 20 (after 20 years the percentage goes down). Between the three legs of the stool you can probably get to about 60% of your income, which is supposed to be reasonable for retirement. > What is left as a justification for below-market salaries? Employment opportunities in government-dominated towns (which do not have healthy private-sector economies), and more job security? The salary isn't at all bad. For some specialties it's below market, but for the average joe it's pretty decent. But it's worth noting that, for me, the job security is key. I've made more money contracting, but contracts end, sometimes abruptly, and the peace of mind you get from having security is very valuable.
evilduck 9y ago
Yeah, basically. If your federal employment ends your medical benefits do as well. It's not like a professor's tenure or anything. But unlike the private sector, if you served for at least 5 years you can re-enroll after you reach retirement age and the government will pick up the "employer's costs" of your insurance once again. You'd still be paying the premiums out of pocket though (which is better than other jobs or Medicare if you can afford it). There is still a small guaranteed basic pension that federal employees pay into, but it's not really enough to retire on by itself. It's one part of their 3 part retirement plan. Couple it with Social Security (the second part) and you could probably scrape by and remain reasonably well fed and housed if you relocated somewhere rural and cheap, but if you plan on retiring and staying put you're going to have to save using the TSP (the third part) like anyone else saves with a 401k. I can't provide a blanket statement for why people are federal employees though, it's probably different in each industry. My wife is part of the scientific and regulatory side of the oil and gas industry and [benefits included] she doesn't earn substantially less than her private industry peers in similar scientific roles. And that industry is notorious for frequent and cut throat boom-bust cycles which brings it even closer to parity over the long haul. As a software developer though, not a chance. The desirability of the roles they have and the compensation even with benefits is not usually very attractive and the federal hiring process is bonkers compared to most companies.