What You Can DIY in Federal Benefits: A Guide for Employees

Federal employees enjoy access to some of the most comprehensive benefits programs available, from the Thrift Savings Plan (TSP) to healthcare options, life insurance, and retirement annuities. The challenge? These benefits can feel overwhelming to navigate. The good news is that with the right resources and know-how, you can take charge of many aspects on your own. Knowing what you can confidently DIY and when to call in the pros can make all the difference.

What You Can Handle on Your Own

Federal benefits can seem like a bureaucratic maze, but some tasks are easier to manage than you might think. Here are the areas where you can take the reins:

1. Adjusting TSP Contributions – Updating your TSP contributions and investment allocations is straightforward. Log into your TSP account, and with a few clicks, you can change how much you’re saving or where your funds are invested. If you’re unsure about investment allocations, lifecycle funds are a great place to start. They automatically adjust as you get closer to retirement, taking the guesswork out of rebalancing. For a more tailored approach, consider diversifying between the C Fund for stock market growth, the G Fund for stability, and the F Fund for bonds.

2. Reviewing Your FEHB Plan – Each year during Open Season, you have the chance to review and update your Federal Employees Health Benefits (FEHB) plan. Comparison tools like Checkbook’s Guide to Health Plans for Federal Employees can help you evaluate premiums, deductibles, out-of-pocket costs, and whether your preferred doctors are in-network. Don’t just look at premiums. If you’re managing chronic health conditions or expecting higher medical expenses, plans with lower deductibles and comprehensive coverage may save you more in the long run.

3. Managing FEGLI Coverage – Updating your Federal Employees Group Life Insurance (FEGLI) coverage or reviewing your beneficiaries is a task you can tackle online or through your HR department. Regularly reviewing this ensures your policy matches your current financial needs and family situation. Beneficiary designations are often overlooked. Double-check them after major life events like marriage, divorce, or the birth of a child to avoid potential legal headaches later.

4. Navigating Retirement Estimates -Curious about what your retirement income will look like? Use online calculators or request an annuity estimate through your HR department. OPM’s FERS Retirement Planning page offers tools to help you factor in years of service, salary, and unused sick leave.Bookmark the OPM’s Retirement Services portal for resources like the FERS annuity calculator. It’s a simple way to see how retiring at different ages or with unused sick leave impacts your pension.

Tools to Help You DIY

Even the savviest DIYer benefits from the right tools. Here are a few to keep in your back pocket:

• TSP Calculators: Use these to model contribution levels and project your future savings.
• FEHB Comparison Tools: Evaluate health plans side-by-side to find the best fit.
• OPM Resources: From retirement checklists to benefit FAQs, OPM offers a treasure trove of information.
• Benefit Seminars: Many agencies host free workshops that provide insights into managing your benefits. If your agency offers one, make it a priority.

When to Ask for Help

DIY efforts are empowering, but some situations call for professional guidance. Here are moments when you might need extra support:

1. Complex Tax Scenarios -If you’re balancing federal retirement income with outside investments, taxes can get tricky. A tax professional – preferably a CPA or EA experienced in retirement planning – can help optimize withdrawals and reduce tax liability. For example, if you’re withdrawing from your TSP and a Roth IRA simultaneously, timing and amounts matter for tax efficiency.

2. Estate Planning and Beneficiary Coordination -Aligning your federal benefits with your broader estate plan can be challenging. An estate planning attorney familiar with federal benefits can ensure your FEGLI, TSP, and survivor annuities work seamlessly with trusts or other financial instruments.

3. Major Life Changes -Marriage, divorce, or nearing retirement often require benefit adjustments. Your HR department or OPM can provide guidance, but a financial planner can add personalized strategies.If you’re nearing retirement, consider consulting a professional for a pre-retirement checklist tailored to your needs.

The Bottom Line

Navigating federal benefits doesn’t have to feel like an uphill battle. With a bit of knowledge and the right tools, you can manage much of it yourself—and gain confidence in shaping your financial future. Start with the basics, know when to seek help, and remember: small, informed steps today can lead to a more secure and satisfying tomorrow.