FederalDaily.com > OPM to Announce New FEHB Plan Option

FederalDaily - November 14, 2005

OPM to Announce New FEHB Plan Option

The Office of Personnel Management (OPM) announced a new limited-scope flexible spending account (FSA) option for calendar year 2006 that will be available to employees enrolled in high-deductible health plans (HDHP) with health saving accounts (HSA). OPM Director Linda Springer and other OPM representatives said that the new dental-vision FSA would allow employee’s with an HDHP HSA (approximately 4,000 employees) to set aside pre-tax dollars for eligible dental and vision expenses. IRS rules allow individuals with HSAs to put pre-tax funds into FSAs only if FSAs are limited in scope. While HSA annual contribution limits are $1,100 (Self Only) and $2,200 (Self and Family), employees with HDHP HSAs could put an additional $250–$5000 (pre-tax) into the dental-vision FSA. Additional details and a “Frequently Asked Questions” section will be added to the OPM Web site at www.OPM.gov. After calendar year 2006, the dental-vision FSA will be replaced by a more comprehensive option, according to Springer.

Senator Praises Coast Guard Agency

Sen. Joseph Lieberman, D-Conn., commended the U.S. Coast Guard’s efforts in the aftermath of Hurricane Katrina during a meeting last week of the Senate Homeland Security and Governmental Affairs Committee. Lieberman said, “The Guard was not only prepared but it executed its mission with precision.” In particular, he noted the advanced planning and mapped out strategy that allowed the agency to rescue 33,000 people. “I have written to [Office of Management and Budget] Director [Joshua] Bolton asking for an additional $500 million for the Coast Guard to cover the costs related to your work in the wake of Katrina,” said Lieberman. He did point out potential areas of improvement, particularly the areas of sharing of information and alternative communication methods when telephone lines are unavailable.

Improving Charity Efforts for Military Personnel

Sen. Mel Martinez, R-Fla., has included an amendment in the Defense Authorization Act of 2006 that would lower restrictions to allow the Department of Defense (DoD) greater flexibility in accepting and administering charity for military personnel. The focus of the amendment is to eliminate the provision that prevents wounded servicemembers from accepting gifts valued at more than $20. “Severely injured servicemembers are often unable to accept contributions and assistance that would help their recuperation and rehabilitation,” Martinez said. “The financial burden placed on injured soldiers and their families’ impacts morale.” The DoD secretary would have discretion in authorizing and distributing acceptable donations. Under the amendment, there would be no cap on donations for military personnel wounded or killed during military operations.

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FEMA Inspector Arrested for Bribes

A Federal Emergency Management Agency (FEMA) inspector in Miami-Dade County, Fla., Tywanishia Preston, was arrested and charged with inflating applicants’ claims for disaster relief from FEMA in exchange for kickbacks, according to the Department of Justice (DOJ). She was indicted on multiple counts of receipt of bribes by a public official, as well as making false, fictitious and fraudulent claims. If convicted, DOJ said Preston faces a maximum sentence of 15 years of imprisonment for each bribery count and a maximum sentence of five years of imprisonment for each count of making a false claim. FEMA was responsible for providing assistance to individuals in an area that was declared a major disaster. FEMA was authorized to provide assistance to eligible victims of Hurricane Frances.

Boosting Pay for Reservists

The Senate passed a measure sponsored by Sens. Dick Durbin, D-Ill., and Evan Bayh, D-Ind., to help National Guard and Reserve members cope with the loss of income during long deployments. The amendment allows reservists mobilized for more than six months to receive up to $3,000 per month in extra pay to help close the gap between their military and civilian salaries. To qualify, a reservist must have a pay gap of at least $50 per month. Durbin said survey data from the Department of Defense Status of Forces Survey of Reserve Component Members demonstrates a need for action by Congress. The report, which was released in September 2004, showed that 51 percent of the members of the National Guard and Reserve said they suffer a loss of income when mobilized for long periods of active duty because their military pay is less than the pay from their civilian job. Durbin added that the average reservist loses $368 per month, but 11 percent report losing more than $2,500 per month.