You served in uniform to protect and defend the United States. Now you have a federal government career. And when it comes to veteran and Fed benefits, you might be faced with some confusion and a lot of paperwork.
Not to worry.
We’re here to help you understand how your Fed and veteran benefits operate. Armed with this information, you can understand how to get the best of both.
Federal Retirement for Veterans
Your military service means you’re eligible for federal retirement benefits from the Federal Employee Retirement System (FERS) as long as:
- You received an honorable discharge from the Armed Forces, AND
- Your service in uniform occurred before your federal government retirement
Furthermore, your military service can be credited to FERS as long as you deposit funds into a civilian annuity (which your agency will process). However, buy-back rules vary based on your Fed employment. However, you can’t receive military service credit toward an annuity unless you waive military retirement pay unless you were disabled in combat.
Combining TSP and VA Benefits
The Thrift Savings Plan is available to you as a Fed and veteran, offering tax advantages and income growth. Your agency automatically contributes 1% of your earnings to the TSP. You can also contribute from 1% to 100% of incentive pay, special pay, or bonus pay.
But you’re not allowed to use disability compensation, subsistence allowances or housing allowances as TSP contributions. These payments aren’t considered “earned income” by the IRS.
Healthcare, Life Insurance and Long-Term Security
Being a veteran Fed offers an abundance of other compensation that cover health, life, and long-term care, like the following.
Learn more about your retirement benefits at our No-Cost webinars, featuring Ed Zurndorfer -
Tricare and FEHB
As a uniformed member of the Armed Forces, you are automatically protected by TRICARE. TRICARE provides access to healthcare for you and your family, thanks to a network of military hospitals, clinics, and civilian healthcare providers.
And as a federal employee, you and your family are also under the protection of the Federal Employees Health Benefits Program (FEHB).
The healthcare services you and your family receive from an authorized healthcare provider are covered by your FEHB plan, with uncovered charges then submitted to TRICARE for payment.
In most circumstances, you can keep FEHB and TRICARE coverage when you retire.
Life Insurance
Here, the Federal Employees Group Life Insurance (FEGLI) covers Feds. Additional choices for veterans include:
- Veterans Affairs Life Insurance
- Servicemembers’ Group Life Insurance
- Veterans’ Group Live Insurance
- Servicemembers’ Group Life Insurance Traumatic Injury Protection
- Family Servicemembers’ Group Life Insurance
Long-Term Care
The good news is that you’re eligible for the Federal Long Term Care Insurance Program (FLTCIP) as a federal workforce member. The bad news is that FLTCIP suspended program applications until December 2026. If you aren’t currently enrolled, this option isn’t available.
However, as a veteran, you’re eligible for the:
- Aid and Attendance benefit, to cover long-term care costs
- Housebound allowance, which supports you and your spouse if your disability confines you to your home
However, you can't use both allowances at the same time.
More Bang for the Buck
Numerous benefits are available to you, the veteran Fed. To get the most from what's offered, focus on your healthcare, life insurance, and retirement needs with help from a knowledgeable CERTIFIED FINANCIAL PLANNER™ can also help. The CFPs™ with Serving Those Who Serve have extensive experience with veteran and federal worker benefits and can help guide and advise you on the best approach.
For more information and to set up a no-obligation appointment, visit the website or email [email protected].
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 Serving Those Who Serve writers and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
