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On March 23, 2010, President Obama signed into law the “Patient Protection and Affordable Care Act,” Public Law 111-148. While some aspects of this law will not take effect until 2014, there are several major provisions that become effective before that time.

Among those is the coverage of a dependent until age 26. The effective date of this provision is the first day of the plan year that is six months following enactment of the law. For the Federal Employees Health Benefits (FEHB) Program, that means January 1, 2011.

NATIONAL DEFENSE AUTHORIZATION ACT

President Obama signed the National Defense Authorization Act yesterday afternoon.  The Act contains several retirement changes. OPM will provide additional information and guidance as soon as possible.

*       Credit for sick leave in the computation of FERS annuities is effective at 50% immediately and 100% in 2014. 

*      Provision allowing former federal employees under the FERS who withdrew their contributions to the retirement trust fund, thereby waiving retirement credit for those years of service, to redeposit their earlier contributions, plus interest, upon reemployment with the federal government is effective immediately. 

*      A change in CSRS part-time computation (going to a single deemed high-3) is effective immediately. 

*      A change of the ending date for periods of service under CSRS that can be re-deposited by actuarial reduction (instead of for separations prior to 10/1/90 it will be for separations prior to 3/1/91) is effective immediately.

*      The less-than-full-time dual comp reemployed annuitant provision authorizes federal agencies to reemploy retired federal employees under certain limited conditions, without offset of an employees' annuity against their salary is available for agencies to use effective immediately.

*      Provisions phasing out cost of living allowances for federal employees working in Hawaii, Alaska, and other non-foreign U.S. territories, and phasing in locality comparability pay in place of the allowance affecting retirement take effect next year.

*      The provisions allowing certain previously non-creditable D.C. Government employment to be creditable for title but not annuity computation are effective immediately.

Please note that the new provision for FERS employees involving their sick leave balance at retirement..this may have only minimal impact on FERS employees (effective Oct 29, 2009) planning for retirement in the near future as they may only have a minimum number of hours of sick leave. The statute only allows 50% of the sick leave balance therefore if you use the current (CSRS) sick leave credit chart in the CSRS/FERS Handbook you will find the employee must have a considerable number of hours to receive one month of credit.  One month of credit equates to an increase of 1/12th of 1 percent in the annuity.  Additionally, OPM indicates additional information and guidance will be provided with implementation dates and processes.\

 

 

ESGR:

WorkForce WV web address www.workforcewv.org <http://www.workforcewv.org/>

 

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