Higher Premium Pay, Health and Wellness, and Federal Women

The Office of Personnel Management is reminding agencies of some pay and benefits-related changes in the latest Defense authorization law that affect many federal employees.

Some civilian employees working overseas in certain countries in the Middle East and Africa are eligible to receive higher premium pay through the end of 2015, according to new OPM guidance, because of an extension granted in the fiscal 2015 National Defense Authorization Act. Government employees working abroad in support of a military operation or in response to a national emergency for at least 42 consecutive days in areas covered by U.S. Central Command, as well as those formerly of CENTCOM now under the U.S. Africa Command, can earn up to $235,300 in basic and premium pay in calendar year 2015 under the waiver authority extended in the Defense law. That $235,300 cap is the vice president’s annual salary in 2015.

Because the United States no longer has an official military operation in Iraq, the higher premium pay cap as outlined in the March 26 OPM memorandum does not apply to civilians working there. However, because President Obama extended the national emergency in Iraq through May 22, 2015, civilians working in that country on reconstruction can take advantage of a premium pay cap waiver for work performed through May 16, 2015 – the last day of the last full pay period ending before May 22,2015. After that date, absent action by the president or Congress, the premium pay cap waiver will not apply to employees working in Iraq.

Premium pay typically includes additional compensation for overtime, night, Sunday or holiday work. The 2009 Defense authorization act first authorized the waiver of the cap and Congress has continued to extend it since then. Any additional pay employees receive as a result of the higher cap cannot be used to calculate retirement benefits or for lump-sum payments for accumulated and accrued annual leave.

OPM’s March 26 memo also includes guidance on a few other extensions in the fiscal 2015 Defense law related to the income replacement program for certain reservists, as well as allowances, benefits and gratuities for employees assigned to a combat zone.

Speaking of Defense-related pay and benefits, President Obama plans to let Congress know by April 30 which recommendations to reform the military’s compensation system he’d like to see implemented first. The president stopped short of endorsing any specific proposals and said that additional analysis might be necessary for some of the panel’s recommendations. Among the 15 recommendations from the Military Compensation and Retirement Modernization Commission: phase out the 20-year cliff-vesting retirement system and move family members and some retirees out of TRICARE and onto health insurance plans in the private sector.

TRICARE wants service members to remember that their first eight appointments with TRICARE-authorized mental health care providers, social workers, and other counselors do not require a primary care manager referral – just a military identification card. “Don’t wait until your family has an emergency, take your time and find a provider that makes you comfortable,” said a March 26 notice on TRICARE’s website. “Your PCM or family doctor can give a recommendation. If you are unsure of the differences in provider types, their education, treatments, and ability to prescribe medication, use the Find a Doctor tool on the TRICARE website.” Click here for more information.

OPM also has health and wellness on the brain now. The agency plans to host a worksite health and wellness campaign in 2015 with a different theme each quarter to help promote a healthier federal workforce -- and support Obama’s 2014 memorandum directing federal agencies to expand telework and other workplace flexibilities. In a March 13 memorandum, OPM Chief Human Capital Officer Mark Reinhold said the theme for 2015’s first quarter (which, technically, is over at this point since we’re in Q2) is “Building the Business Case for Worksite Health & Wellness.” That theme is designed to outline the benefits for agencies, employees, and communities when workers are in good mental, physical and emotional shape.

The president has said he wants the federal government to be an example of inclusiveness and work-life balance for the rest of the American workforce. This week, OPM released a report that said more than one-third (34 percent) of Senior Executive Service positions at federal agencies are held by women. This is compared to 14.6 percent of executive jobs in the private sector, according to the Center for American Progress, OPM noted. Younger women are making particular inroads, the report stated. 

(Image via mariocigic / Shutterstock.com)