Reviewed by Jonathan Teplitsky · Updated June 2026
Federal Employee Benefits Overview
Federal employee benefits are among the most valuable in the U.S. workforce — but only if you understand them. The headline: FEHB health insurance carries into retirement at the same premium share you paid as an employee. Private retirees pay $1,000+/mo for comparable coverage; federal retirees pay ~28% of total premium with government covering the rest.
FEHB: Federal Employees Health Benefits
200+ plan options each Open Season — national HMO/PPO, regional, HDHP with HSA. Government pays ~72% of premium; you pay 28%.
Open Season: Monday after Thanksgiving through 2nd Monday of December. Effective first full pay period in January.
The 5-year continuation rule: Must be continuously enrolled (or covered as family) the 5 years immediately before retirement. 4 years 11 months does not qualify. Waivers rare. If you're within 5 years of retiring under FERS or CSRS, enroll now and stay.
Premium conversion: Active employees pay pre-tax automatically. Retirees lose this — premiums come from after-tax retirement income.
Plans: OPM Healthcare & Insurance.
FEDVIP: Dental and Vision
Separate from FEHB. 12 dental carriers + 5 vision carriers. Government does NOT contribute — employees and retirees pay 100%. Same Open Season window.
FEGLI: Federal Employees' Group Life Insurance
- Basic: Salary rounded up to nearest $1,000 + $2,000. Government pays 1/3.
- Option A: Flat $10,000.
- Option B: 1-5× salary. 5-year age bands — premiums climb sharply after 50, accelerate after 60.
- Option C: 1-5× of $5,000 spouse, $2,500 per child.
Cannot increase FEGLI after 35 except at qualifying life events. Run Option B numbers before 60 — many replace with private term while insurable.
FSAFEDS
- Health Care FSA: $3,300 limit 2025 (verify 2026 at FSAFEDS.com). $660 carryover.
- Limited Expense FSA: $3,300 dental/vision only — pair with HDHP/HSA.
- Dependent Care FSA: $5,000/household ($2,500 MFS). Use-it-or-lose-it.
Re-enroll every Open Season — does not carry forward.
FLTCIP: Long-Term Care Insurance
Suspended to new enrollment since December 19, 2022. As of mid-2026, OPM has not reopened. Existing enrollees retain coverage.
Leave Accruals
- Annual leave: 13 days/yr (0-3 yr); 20 days/yr (3-15 yr); 26 days/yr (15+ yr). 240-hr carryover most employees.
- Sick leave: 13 days/yr at all grades. No annual carryover cap. Unused converts to service credit at FERS/CSRS retirement.
- Court leave: Paid for jury/witness government service.
- Military leave: 15 workdays (120 hr, up to 240 for active Guard/Reserve) per fiscal year.
- FMLA: 12 weeks unpaid job-protected. Paid Parental Leave 12 weeks for birth/adoption/foster.
Federal Holidays
11 paid: New Year's, MLK, Presidents Day, Memorial Day, Juneteenth (added 2021), July 4th, Labor Day, Columbus Day, Veterans Day, Thanksgiving, Christmas. Juneteenth brought count 10→11.
Recent Changes / "Benefit Cuts"
- FEHB premiums +6-13% annually — typical industry trend, not federal-specific.
- FERS-FRAE 4.4% (post-2014 hires). Same benefit, higher contribution.
- FLTCIP closed to new enrollment.
- Schedule F on/off — check current OPM guidance.
- PSO tax exclusion for retiree health premiums — technical adjustments. Consult tax professional.
Always check OPM for current-year. Core benefits intact.
How Benefits Fit Pay and Retirement
Benefits stack on GS pay and feed retirement. FEHB into retirement, sick leave service credit, TSP combine to make federal careers strong on the back end. See retirement age, TSP withdrawals, and federal retirement overview.
Action Checklist
- Confirm within or past 5-year FEHB window before setting retirement date.
- Re-shop FEHB every Open Season.
- Re-enroll in FSAFEDS each year — no auto-renew.
- Review FEGLI Option B annually after 50; price private term as comparison.
- Track unused sick leave — converts to service credit.
- Bookmark OPM, FSAFEDS, TSP.gov.