After over 30 days without a paycheck, a lot of federal workers were rightfully frustrated about the uncertainty surrounding their situation. From having to locate relief funds out of either a savings account or a loan to even worrying about how to provide basic necessities for their families, the stress level of furloughed feds was rising. To top things off, federal workers taking advantage of the FEDVIP coverage (Dental and vision insurance for Federal employees) learned that after one missed paycheck, they were then responsible to pay premiums out-of-pocket or else lose the benefits. In response to many alarmed and startled federal workers, Senators from Maryland and Virginia sent a concerned letter to OPM that ultimately convinced the agency to extend the grace period to three missed paychecks. January 25th marked the second consecutive payday in which affected federal employees received a paystub of zero dollars paid. The extension to just 3 pay periods perhaps signified an indication from OPM that the shutdown would be over before February 8th, which in fact it was. Until at least February 15th, the Federal Government will be up and running.
Until Next Time,
**Written by Benjamin Derge, Financial Planner. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Benjamin Derge and not necessarily those of RJFS or Raymond James. Links are being provided for information purposes only. Expressions of opinion are as of this date and are subject to change without notice. Raymond James is not affiliated with and does not endorse, authorize, or sponsor any of the listed websites or their respective sponsors.
Federal Vision Insurance Grace Period