Making the Most of Your Benefits

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1 Making the Most of Your Benefits Today & in the Future 1

2 WHAT IS WELLNESS? Health Financial Social Career Visit for additional wellness information 2

3 YOUR TOTAL COMPENSATION Paid Leave (15%) Health Insurance (40%) Pay (ex. $50k) Retirement (24%) Life Insurance (1%) 3

4 Available Benefits Benefits available to both career and non-career employees include: Health Insurance Flexible Spending Accounts* Dental & Vision Insurance* * After one year for non-career employees 4

5 HEALTH INSURANCE 5

6 Available to all non-career employees Provides comprehensive medical Prescription drug coverage Dental coverage You pay (per pay period): Self Only $40 Self Plus One $205* Self and Family $370* USPS HEALTH BENEFITS PLAN * CCAs rate is a % of total premium based on years of service 6

7 Health Plan Benefits at a Glance Features: Annual physical and other preventive care covered at 100% Preventive care medications covered at 100% Routine dental exams and cleaning twice per year Covered Services Cost Virtual Visits $5 Doctor Visit $30 Specialist Visit $60 Generic Drugs $10 7 To learn more, visit:

8 FEHB OVERVIEW Choice of 200+ FEHB plans You pay ~25% of the total premium No need to re-enroll Carries into retirement 8

9 FEHB ENROLLMENT Everyone has different individual and family needs It s important to identify the right plan for you and your family You could end getting a better value for your health care dollars On average, 2/3 of FEHB participants may be over buying insurance. 9

10 Checkbook Go to to access Checkbook 10

11 Checkbook Go to to access Checkbook 11

12 HEALTH CARE AND FSA Out-of-Pocket Costs: Deductible Copays for doctor visits Prescription drug copays Dental care (beyond preventive care) Health Care Flexible Spending Account Vision care (including glasses, contacts) 12

13 FLEXIBLE SPENDING ACCOUNTS Annual Limit: $2,600 Annual Limit: $5,000 Out-of-pocket health, dental and vision costs, hearing aids and batteries, Lasik eye surgery, prescribed medicines, sunscreen (SPF 30 or higher), etc. Child care expenses including before- and after-school care and extended care programs for dependents under age 13, nursery school, preschool 13

14 FSA Tax Savings Put $2,500 into a Health Care FSA and Saved $625 Saved $190 Saved $125 Federal tax at 25% Social Security and Medicare payroll taxes at 7.65% State tax at 5% 14 Total Savings = $940 Actual Out-of-Pocket Cost: $1,560

15 RETIREMENT 15

16 RULES FOR RETIREMENT CSRS FERS Age & Service 62 & 5 years 60 & 20 years 55 & 30 years MRA & 30 years Minimum Retirement Age (MRA) is determined by your year of birth. 16

17 WHAT DO YOU GET? Salary High-3 consecutive salary Service Years of creditable service Service Factor For FERS the service factor is 1% (1.1% if retiring at age 62 or later with at least 20 years of service) 17

18 FERS ANNUITY SUPPLEMENT Designed to take the place of Social Security portion of retirement Paid each month until you reach age 62 If you are older than 62 at retirement you receive a service factor of 1.1% instead Calculated using the social security benefit earned while employed under FERS 18

19 UNDERSTANDING YOUR RETIREMENT Annuity Social Security (FERS only) Makes up ~50% - 55% of your replacement income in retirement Thrift Savings Plan Depends on you 19

20 RETIREMENT EXAMPLE For someone making $50,000/year with 30 years of service Goal: Replace 100% of current income in retirement FERS CSRS Annuity $15,000 $28,000 Social Security ~$10,000 - Total $25,000 $28,000 Gap from $50K $25,000 $22,000 TSP Balance Needed* $625,000 $550,000 * Assumes 4% annual withdrawal 20

21 MANAGE WHAT YOU CONTROL No Control Annuity (Pension) Social Security You Control TSP 21

22 WHAT S YOUR RETIREMENT DREAM? 22

23 FERS MATCHING Contribute 5% get 10% in your TSP Employees age 50+ can contribute an additional $6,000 above the IRS limit 23

24 MISSING THE MATCH Each year USPS employees throw away almost $200M 24

25 TSP INVESTMENT CHOICES G Fund I Fund L Fund F Fund S Fund C Fund 25

26 Account Balance (Thousands) THE POWER OF COMPOUNDING Compounding allows you to grow money from earnings on your contributions. $90 $80 $70 $85K Nearly 3x increase Annual contribution: Average rate of return (L funds): $1K 6% $60 $50 $40 You added $30K $30 $20 $10 $ Year If you contribute early and leave money in your account for longer, you will see a greater opportunity for increasing your investment. 26

27 MANAGE YOUR EXPENSES Bills Discretionary spending Benefits Costs Saving $20 a week 27

28 TSP Value (Thousands) FERS: TSP VALUE $ Years of Service Salary: $50K Average rate of return (L funds): 6% $600 $629K $500 $400 $419K $300 $200 $293K $100 $0 3% 5% 10% Contribution 28

29 FEDERAL BALLPARK ESTIMATE When you get to the Federal Ballpark Estimate, click Start Estimate in the upper right corner of the webpage 29

30 USING POSTALEASE 30

31 ADDITIONAL BENEFITS Federal Employee Dental & Vision Program (FEDVIP) Federal Employees Group Life Insurance (FEGLI) Federal Long Term Care Insurance Program (FLTCIP) Commuter Program 31

32 THREE KEY TAKE-AWAYS Ensure you have the right coverage to meet your needs. Consider your current needs, evaluate your available options, and take action to make the right benefits enrollment choice. Maximize Your Retirement Savings. TSP gives you control to determine your level of contribution remember the power of compounding. 32

33 BENEFITS INFORMATION 33

34 QUESTIONS? For questions regarding your employee benefits, contact: HR Shared Service Center (HRSSC) Contact Information HRSSC Hours of Operation: Monday Friday, 7 a.m. ET 8:30 p.m. ET Please have Employee Identification Number and USPS PIN available. HRSSC , option 5 HRSSC (TDD/TTY) PostalEASE , option 1 Or visit the Benefits page on the LiteBlue site at: 34

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