Federal Daily - June 3, 2010

TSP Returns for May 2010

Rates of Return were updated on June 1, 2010.

The monthly G, F, C, S, and I Fund returns represent the actual total rates of return used in the monthly allocation of earnings to participant accounts. The returns are shown after deduction of accrued TSP administrative expenses. The F, C, S, and I Fund returns also reflect the deduction of trading costs and accrued investment management fees. The most current G, F, C, S, and I Fund rates of return are shown above. Returns are updated after the monthly allocation of earnings, usually by the fourth business day of the month.

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OPM Extends FLTCIP Coverage to Same-Sex Partners

The Office of Personnel Management published a final rule that extends to same-sex domestic partners of federal employees eligibility for coverage under the Federal Long Term Care Insurance Program.

The final rule, published June 1 in the Federal Register, is effective July 1 and is part of the President Obama’s initiative launched last year to broaden eligibility for federal benefits to include gay and lesbian couples. The rule covers only FLTCIP and no other federal benefits programs. OPM noted that the expanded benefits should make the federal government more competitive in recruiting and retaining highly qualified employees.

To apply for FLTCIP coverage, a same-sex domestic partner must indicate on the FLTCIP application that documentation of the domestic partnership has been submitted to the federal employee/annuitant’s agency retirement system. The only documentation a partner needs to file is a declaration that they are indeed domestic partners, intend to remain so indefinitely, are at least 18 years old, share a common residence and finances, and are not otherwise married. They must also declare that they are not related to each other, for example, two sisters would not qualify for a federal domestic partner designation, according to the final rule.

The employee or federal annuitant does not have to be enrolled in FLTCIP for a same-sex domestic partner to be eligible. However, the employee must be eligible to apply for FLTCIP coverage for their partner to be able to apply.

To see more, go to: www.opm.gov/retire/pubs/bals/2010/10-901.pdf.

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Non-traditional Health Care Plans Gain Ground

Workers are increasingly enrolling in non-traditional health care coverage, says a new report. According to the report, assets in health savings accounts and health reimbursement arrangements have grown 750 percent in the past three years, reaching $7.1 billion.

The report, released by the nonpartisan Employee Benefit Research Institute on June 1, looked at the growth of these two relatively new employment-based health benefit plan options, or consumer-driven health plans. Enrollment in the plans increased from 1.2 million accounts in 2006 to about 5.1 million in 2009, the EBRI report said. Overall, the plans covered 15 million to 19 million people in 2009.

The accounts allow workers to set aside money for future health care costs, and can be used as tax-advantaged vehicles to save for health care expenses in retirement, the report noted.

Typical enrollee: The typical consumer-driven health plan enrollee was more likely than traditional plan enrollees to be young, unmarried, higher-income, educated and healthy. The report found no differences between CDHP enrollees and traditional plan enrollees regarding gender, race and presence of children, the report said.

Account balances: Increases in average account balances appear to have leveled off. In 2006, account balances averaged $696. They increased by 90 percent to $1,320 in 2007. Account balances averaged $1,356 in 2008 and $1,419 in 2009, the report said. However, men tend to have higher account balances than women. Account balances increase with household income, and education has a significant impact on account balances independent of income and other variables, the report said.

To see more, go to: www.ebri.org/pdf/PR.876.01June.CDHPs.pdf.

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