Onward and Upward

Workers joining the federal government have a lot to think about when they first start their jobs -- new colleagues, unfamiliar office space, and decisions about health benefits and investing for retirement. But sorting out benefits doesn't have to be a hassle if they do some research and ask the right questions.

New employees should consider planning for retirement during the onboarding process, said John Grobe, president of consulting firm Federal Career Experts. It's important that they understand how much of their retirement income will come from their Federal Employees Retirement System pension and Social Security, he said.

"Once they understand that they will hopefully realize the importance of setting money aside on their own -- that they know how much is dependent on them," he said.

Young employees must be careful not to ignore retirement savings in favor of other big expenses like buying a home and their children's education, according to Grobe. The bank won't provide loans for retirement investments, so employees should put aside money constantly and let time work for them, he said. Contributing 5 percent of pay to the Thrift Savings Plan is the gold standard because the government will match that amount, he said.

"Any new employee should put in 5 percent," he noted. "If they don't, they're giving up free money."

When it comes to health insurance, new hires should do their homework and use agency resources, said Walton Francis, author of Consumer's Checkbook Guide to Health Plans for Federal Employees and Annuitants. For example, many agencies offer subscriptions to the print or online versions of the Checkbook, which outlines FEHBP plans and procedures.

"There are lots of plan options and people should look and think a little bit outside the box," he said.

For new and young employees, Francis recommends high deductibles and consumer-driven plans because they have robust catastrophic event protection, free physicals and offer workers bang for their buck. The Kaiser Standard Option and Blue Cross Basic also are likely to be good buys, he said.

Francis and Grobe agreed new hires should take advantage of agency-sponsored seminars and briefing sessions on topics like health benefits and planning for retirement, though they cautioned employees might have to conduct extra research and ask questions to get the information they need.

"Use a little initiative, check things out, don't assume that just because you went to a seminar and they didn't say much there's not much that could have been said," Francis said.

Some agencies will offer half-day training sessions or a series of seminars, while others simply have an "information dump," Grobe noted. Employees would benefit most from sessions on the importance of contributing to the TSP, the deals available through the Federal Employees' Group Life Insurance program, and the ins and outs of open season for changing health benefits, but the quality depends on the expertise of the person conducting the seminar, he said. The best thing a manager could do for a new employee is to serve as a benefits mentor, he added.