Anticipay-tion

Some federal employees eager to take advantage of new benefits that will allow them to boost their retirement savings and use pre-tax dollars to pay for medical and dependent care expenses, may have a five-month wait on at least one of them, depending on which agency employs them.

Last fall, the Office of Personnel Management announced it would offer Flexible Spending Accounts so that employees can set aside pre-tax money to pay for dependent care expenses and medical costs not covered by traditional health plans. Despite a July 1 launch date for health and dependent care flexible spending accounts, the Defense and Energy Departments, NASA, the National Security Agency and the Office of Management and Budget won't be able to start deducting contributions for the accounts until Sept. 1. The Government Printing Office and Veterans Affairs Department won't be able to start deducting the money from employees' paychecks until January 2004.

However, the slowdown on collecting FSA contributions seems to have no bearing on the collection of catch-up contributions for employees' Thrift Savings Plans. This year federal employees aged 50 or older can put extra money in the 401k-style accounts.

National Business Center officials, which handles payroll services for several departments and agencies, including the Interior and Education departments, Social Security Administration, Securities and Exchange Commission, Equal Employment Opportunity Commission and Federal Trade Commission, said it is ready to start deducting the money in August.

Tom Trabucco, TSP spokesman, said Tuesday that the schedule for people to begin making the contributions in August is on track and that board officials don't anticipate any delays.

Per Diem Rates

If you travel frequently on government business to Kentucky, North Carolina, Ohio and Virginia, note that the General Services Administration published new per diem rates for several cities in those states in the Federal Register on May 9. The rates take effect on May 27.

The locations are now part of GSA's new Federal Premier Lodging Program, which was integrated into the per diem rate-setting process in 2002. Under FPLP, hotels guarantee that a certain number of rooms will be available at or below the applicable per diem rates. Previously, there was no guarantee that this rate would be available.

The new rates and locations are:

• Hebron/Florence/Covington, and Boone and Kenton counties, Ky.: $122 ($80 for lodging and $42 for meals and incidental expenses).
• Chapel Hill, Raleigh, and Orange and Wake counties, N.C.: $124 ($82 for lodging and $42 for meals and incidental expenses).
• Research Triangle Park/Durham, and Durham County, N.C.: $128 ($82 for lodging and $46 for meals and incidental expenses).
• Cincinnati, and Hamilton and Warren counties, Ohio: $130 ($80 for lodging and $50 for meals and incidental expenses).
• Colonial Heights, Va.: $114 ($80 for lodging and $34 for meals and incidental expenses).
• Hopewell, Petersburg, and Prince George County, Va.: $103 ($69 for lodging and $34 for meals and incidental expenses).
• Richmond, and Chesterfield and Henrico counties, Va.: $122 ($80 for lodging and $42 for meals and incidental expenses).