New Fed 101

Welcome to your federal career. You've cleared the hiring process, signed your paperwork, and gotten your badge. So now what?

Most new feds are thrown into the job without a real roadmap — no one hands you a guide on how your benefits work, how retirement is earned, or how to make the most of your service from day one. That's where this guide comes in.

This isn't your agency's onboarding.

It's the playbook you should have been given — the real-world advice from people who've already been through it. Whether you're here to build a 30-year pension, serve for a few years, or see where this career path leads, the decisions you make now can impact your pay, your retirement, and your peace of mind later.

🏛️ The Three Pillars of FERS

"Pillar (noun): A strong vertical structure used to support a building or monument. Often symbolic of strength, permanence, and foundational integrity." - Merriam-Webster Dictionary

That definition is exactly why we use the term pillar to describe your federal retirement system.

You're not balancing your future on a wobbly stool or dividing it into plastic "buckets." You're building something designed to last. Pillars don't flex. They don't fail. They are meant to carry weight for the long haul, and they do it with structure, symmetry, and purpose.

Pillars built by the Romans and Greeks still stand today, supporting temples, bridges, and courthouses centuries after they were first laid. That's the level of durability and purpose we're aiming for with your retirement. Not temporary. Not trend-based. Structural.

Under the Federal Employees Retirement System (FERS), your career is supported by three core income sources. Each is a pillar unto its own. Let's walk through each one.

✅ What Kind of Federal Employee Are You?

🧭 Your Retirement Category Drives the Rules

There are different types of retirement coverage under FERS. Most employees fall under the Regular FERS category, but certain positions qualify for special rules due to the nature of the work. These roles are called Special Category Employees (SCEs) — and the benefits are very different.

Use this section to figure out which category you're in, and what it means for your retirement.

🧱 Your Federal Paper Trail

📁 Key Documents & Dates — The Proof of Your Career

Your federal career is not just about what you do — it's also about what you can prove. And in government service, proof lives on paper. From the moment you're hired until the day you retire, your personnel record becomes the foundation of your benefits, your eligibility, and your paycheck. If these records are wrong, incomplete, or missing, you could lose years of creditable service, retirement eligibility, or insurance coverage. So let's walk through the most important documents and dates you need to understand and track.

🗂️ The Must-Know Documents

📄 Understanding Your LES (Leave & Earnings Statement)

Your LES — or Leave and Earnings Statement — is your official federal paycheck stub. It's not just about money; it's a report card on your pay, benefits, and service record. While the layout can vary, the core information is the same. You usually access your LES through systems like:

• MyPay (DoD and DFAS employees)
• Employee Express (most civilian agencies)
• GFEBS (Army civilians)
• or NFC (USDA and others)

Here's a snapshot of a typical LES and what each section means.

📌 Pro Tip: If you spot any issues — like missing TSP contributions, the wrong FEHB plan, or leave not accruing — flag it immediately with your HR or payroll office. You only have one pay period to correct some errors before they lock in!

📄 Understanding Your Performance Plan

Once you understand what your job is (via your Position Description), the next question becomes: "How will I be evaluated?" That's the purpose of your annual performance plan — your roadmap for earning Within-Grade Increases (WGIs), awards, promotions, and job security. Whether it's called an EPAP, APPAS, or just a Performance Plan, this document sets the standards you're expected to meet.

🎯 What It Is — And Why It Matters

Your performance plan outlines what success looks like in your position over the course of the year. It includes:

• Critical Elements: These are the essential job duties and goals you're expected to meet. They are derived directly from your Position Description.
• Performance Standards: These define how well each critical element must be performed to meet expectations.

🔍 Your annual rating is based solely on this plan — not on whether you "worked hard" or "got along well with coworkers." If it's not in the plan, it usually doesn't count.

🔗 How It Connects to Your Position Description (PD)

Your performance plan must align with the major duties in your official PD. Each "Critical Element" in your performance plan should trace back to a responsibility outlined in your PD. If your performance plan includes duties not listed in your PD, that's a red flag. You should raise it with your supervisor or HR.

🗓️ When Should You Receive It?

⚠️ Important: A new supervisor should not evaluate you without issuing their own plan or formally adopting the existing one. If that hasn't happened, request a meeting ASAP. This protects both you and your rating.

📊 What's at Stake?

🧾 What You Should Keep: Always keep a digital or paper copy of your performance plan and any accomplishment records you submit. These documents can be crucial later if there's a dispute or if you're up for an award or promotion.

📄 Understanding Your Position Description (PD)

Before you can retire from your federal job, you need to fully understand what your job is. That starts with your Position Description (PD) — a document most federal employees have never even seen.

🧬 What Is a PD?

Your Position Description is the official document that defines your job within the federal system. Think of it as your career's DNA. It's not just fluff — it determines:

• ✅ Your job title and series (e.g., GS-1811 for Criminal Investigators)
• ✅ Your grade level and responsibilities
• ✅ Whether you're covered under Special Category Retirement (SCE)
• ✅ Whether your work is classified properly (which affects pay, retirement, and benefits)

🔍 Why It Matters for Retirement

Your PD is the first line of evidence OPM will review if there's ever a dispute over:

• 🧯 Whether you're entitled to SCE retirement (e.g., Law Enforcement, Firefighters, Air Traffic Controllers)
• ⏱️ Which retirement category applies to you (Regular vs Special)
• 💸 Whether you qualify for the enhanced 1.7% annuity multiplier
• 📆 If you meet eligibility rules for early retirement

If your PD is outdated, vague, or incorrect — it could delay or reduce your benefits.

📋 Sample PD Snapshot

📄 Decoding Your SF-50

Your SF-50 (Standard Form 50) is the official record of your federal employment. Every promotion, reassignment, pay adjustment, or change in retirement coverage generates a new SF-50. It's the paper trail of your federal life — and it matters. Why? Because your SF-50 holds the codes and data that determine:

• Your retirement coverage (FERS vs. CSRS vs. FERS-Special)
• Whether you're under Special Category Retirement
• Your service computation dates (for leave, RIF, and retirement)
• Your pay grade, step, and position title
• Whether OPM sees you as eligible for the retirement path you expect

🔍 Where, When, and Why You Get an SF-50

You don't have to ask for an SF-50; it's generated automatically whenever a significant personnel action occurs. You should receive a new one for:

• Initial Hiring: Your very first SF-50 establishes your entry into federal service.
• Promotions or Grade/Step Increases: Any change in your pay.
• Transfers: Moving to a new position or agency.
• Changes in Benefits: Electing or changing life insurance, for example.
• Annual Pay Adjustments: The yearly cost-of-living adjustment.

You can typically find all of your SF-50s in your agency's **eOPF (Electronic Official Personnel Folder)**. Access is usually through a portal like **MyEPP** or the **Government-to-Citizen (GCE)** platform. It is critical to save a personal copy of every SF-50 you receive.

🧮 Service Credit & SCDs: What Really Counts

In the federal system, not all time counts equally toward retirement. Understanding your Service Computation Dates (SCDs) — and how things like military service, temporary jobs, or refunded time affect them — can make a massive difference in when you can retire and how much you'll earn.

📅 Two SCDs, Two Purposes

🟦 Tooltip: "Your Leave SCD might say you have 20 years, but your Retirement SCD could say you only have 16. Always check both."

🪖 Military Buyback: Turning Uniform Time into Pension Time

If you served on active duty before becoming a civilian fed, you may be able to "buy back" that time — making it count toward your FERS pension and eligibility.

💡 Should You Buy It Back?

🏦 Deposits vs. Redeposits

🔍 Tooltip: "If you withdrew your retirement contributions years ago, that time doesn't count unless you pay it back — plus interest."

❌ What Doesn't Count (Without Fixes):

• Temporary, seasonal, or intern work not covered by FERS
• Military service without buyback
• Federal service after a refund (unless redeposited)
• Non-appropriated fund (NAF) jobs unless transferred into FERS under special authority

📬 Action Steps for Every Employee:

• ✅Review your LES to confirm your Leave SCD.
• ✅Ask HR or use your retirement estimate to verify your RSCD.
• ✅Use a Military Buyback Calculator if you have prior military service.
• ✅Act early — interest compounds every year you wait.

🕰️ Leave: Not Just Time Off

🕰️ Why Leave Isn't Just About Vacation

To most new feds, "leave" just means time off — sick days, holidays, and vacation. But in the federal system, leave is currency. Managed right, it can boost your retirement payout, increase your pension, and buy you flexibility near the end of your career. If you ignore it? You could literally lose thousands. Let's break it down.

💸 Annual Leave: Paid Out in a Lump Sum

When you retire or separate from service, your unused Annual Leave is paid out in a lump sum — as if you had stayed on the job. That means:

• It's based on your final hourly rate (including locality pay)
• You get paid for every hour up to the cap
• It's taxed like regular income in the year you receive it

🧮 Example: Retiring with 240 hours of Annual Leave at $48/hour (equivalent to $100K/year) = $11,520 payout

📅 How Much Leave You Earn: Depends on Your Tenure

The amount of Annual Leave you accrue each pay period depends on your years of federal service — including military time if bought back:

⏱️ This is based on your Leave SCD (LSCD) shown on your LES. Make sure it's accurate!

⏳ Use or Lose: The Annual Leave Cap

Most federal employees can carry over a maximum of 240 hours of unused Annual Leave into the next leave year. Any leave above this limit is forfeited unless you:

• Take it before the end of the year, or
• Have it restored under rare circumstances (like canceled leave for mission-critical duties)

This is known as "use or lose" leave — and it shows up on your LES every pay period. Watch it closely, especially in your final year.

🩺 Sick Leave: Adds to Your Pension Time

Unlike Annual Leave, Sick Leave is not paid out — but it still has long-term value. If you retire under an immediate, unreduced pension, your unused Sick Leave is converted into additional creditable service — which increases your FERS pension for life.

✅ Note: You must retire with immediate eligibility to receive this credit. Deferred or postponed retirements do not get Sick Leave credit.

🧠 Strategy Scenarios: High vs. Low Leave Balances

Even if you're early in your career, these numbers show why leave isn't "just time off" — it's a key part of your long-term compensation.

✅ NEXT STEPS:

• ✅Save your LES every pay period and watch your balances.
• ✅Verify your LSCD and correct any errors now.
• ✅Use a leave tracker to stay under the cap and maximize value.
• ✅Think of Sick Leave as pension fuel — not just sick days.

💰 The Thrift Savings Plan (TSP) — Your Growth Engine

🛠️ You Build It. Uncle Sam Helps.

The Thrift Savings Plan (TSP) is your piece of the federal retirement puzzle — the part you control from day one. It works a lot like a 401(k) in private industry, but it's designed just for feds. And over time, it can grow into your biggest source of retirement income.

Here's what makes it powerful:

📌 Pro Tip: If you're contributing less than 5%, you're leaving money on the table — the match only applies to what you contribute.

🔍 What Do These Funds Actually Do?

You don't have to be a financial expert. Here's what each TSP fund is designed to do:

🧠 Not sure where to start? L Funds automatically shift from aggressive to conservative as you approach retirement. Pick your target year and go.

🧠 Why TSP Matters from Day One

Even small contributions early in your career grow dramatically thanks to compound interest. You don't need to beat the market — you just need to be consistent. Over time, this becomes the third pillar of your retirement — right alongside your pension and Social Security.

📉 TSP Pitfalls to Avoid – Rookie Mistakes with Big Consequences

Even seasoned feds fall into these traps. Avoiding them early means more growth, more protection, and fewer headaches down the road.

• Forgetting to Update Beneficiaries: One of the most devastating legal and financial mistakes feds make. TSP, FEGLI, and unpaid compensation go to whoever is named on your beneficiary form, not automatically to your spouse. We've seen horror stories where an ex-wife listed years ago still receives a full TSP balance.
  ✅ Fix it now: Check your TSP-3 (TSP), SF-2823 (FEGLI), and agency beneficiary forms every time there's a marriage, divorce, child, or major life change. Keep copies. Don't leave it to chance—or court.
• Maxing Out Too Early: Contributing too much too fast? You could lose months of matching contributions. Spread it out over the year.
• Taking TSP Loans Lightly: Every dollar you borrow stops compounding. You're robbing your future self—even if you pay it back.
• Letting HR Change or Cancel Your Contributions: Mistakes happen. Your LES is the only way to catch it early.
• Holding Old 401(k)s or IRAs with Higher Fees: Consolidate if appropriate. The TSP has extremely low fees—and fewer accounts mean fewer things to forget.

💼 Mastering FSAFEDS — The Most Powerful Benefit Nobody Talks About

Most federal employees go their entire career without realizing this is one of the best tools to boost your take-home pay — especially if you have kids, regular medical expenses, or a dual-income household. FSAFEDS stands for Flexible Spending Accounts for Federal Employees. It's a tax-advantaged account that lets you set aside money before taxes to pay for eligible expenses — like:

• Childcare and elder care
• Dental work and orthodontics
• Co-pays, prescriptions, vision care, and more

That means you're not taxed on the money you put in, it lowers your taxable income, and you keep more of your paycheck. And yet, many feds — even senior ones — either don't realize it exists, confuse it with HSAs, forget to re-enroll, or leave money unspent and forfeit it. That's why this section exists.

📅 When to Enroll

You can enroll during Open Season (typically mid-Nov to mid-Dec), or within 60 days of a qualifying life event (QLE). You'll be issued an online account at FSAFEDS.gov to manage elections, claims, and balances.

💡 Why It's So Powerful

FSAFEDS lets you use pre-tax dollars for expenses you were already going to pay for anyway. That can mean 20–30% instant savings. Want to plan ahead for big expenses like braces, LASIK, or a summer day camp? FSAFEDS lets you front-load the money on January 1 and spread out the deductions from your paycheck all year.

✨ Two Types of Accounts (Pick One or Both)

⚠️ Must-Know Rules: You must spend your balance by the end of the plan year. HCFSA allows a limited carryover, but DCFSA has no carryover (only a grace period). Re-enrollment is not automatic.

🛠️ Real-World Example

✅ Bottom Line: If you're paying for braces, childcare, contacts, or medical co-pays out of pocket — FSAFEDS is a no-brainer.

🚫 Rookie Mistakes to Avoid

Your federal benefits are powerful — but only if you understand and manage them. These are the real mistakes we've seen time and time again from new (and not-so-new) feds. They're easy to avoid… if you know what to look for. Let's make sure you don't leave money, coverage, or peace of mind on the table.

❌ Mistake #1: Assuming FEHB Automatically Follows You Into Retirement

It doesn't — unless you meet these three rules:

• You're enrolled in FEHB on the day you retire
• You've been covered for the 5 years immediately before retirement (or since your first eligibility)
• You retire on an immediate annuity

If you leave under a deferred retirement? No FEHB in retirement.

❌ Mistake #2: Not Buying Back Military Time Early

If you served in the military and now work as a fed, you can "buy back" that time to count toward your pension. But after your third year of federal service, interest starts compounding — and it gets expensive fast.

💡 Buy it back early, especially if your service was under 5 years. You'll thank yourself later.

❌ Mistake #3: Ignoring Your SF-50s and SCDs

SF-50s are the official record of your federal employment history. Your Service Computation Dates (SCDs) affect retirement eligibility, leave accrual, and more.

📎 Always: Save every SF-50, verify your SCDs regularly (Leave, Retirement, and TSP match can all differ!), and keep a physical and digital backup.

❌ Mistake #4: Not Updating Beneficiaries

Marriage, divorce, new child — these are Qualifying Life Events. But your beneficiary forms won't change automatically. And yes… we've seen horror stories where ex-spouses get life insurance or parents get TSP funds instead of the current spouse.

✅ Update your forms for: FEGLI (life insurance), TSP, Unpaid compensation, and FERS survivor benefits.

❌ Mistake #5: HR Can't Catch Everything

Your HR team isn't your retirement coach. They may be helpful, but they're not always aware of errors in your record..

🔍 You are your own best project manager. Learn now. Don't assume it's "handled."

❌ Mistake #6: Letting "Use or Lose" Leave Slip Away

You can carry over 240 hours (30 days) of annual leave each year. Anything above that is forfeited if unused by the end of the leave year. That lost leave = lost money and time.

❌ Mistake #7: Missing Open Season

Open Season (every November–December) is your annual chance to reevaluate your FEHB plan, enroll in or adjust dental/vision coverage, and sign up for FSAFEDS (which you must re-enroll in every year). Many feds stay in the same overpriced plan for years. Take 30 minutes each fall to re-shop your coverage — it could save you hundreds.

❌ Mistake #8: Forgetting to Act on Life Changes

Qualifying Life Events (QLEs) — like getting married or divorced, having a child, or moving — trigger a 60-day window to make updates. If you wait too long, you're stuck with your current coverage until next Open Season.

❌ Mistake #9: Not Keeping Personal Copies of Key Documents

Digital records aren't permanent. HR systems change. You should maintain your own retirement file starting now. Save copies of every SF-50, your LES (especially year-end), TSP statements, FEHB/FEGLI/FSAFEDS enrollments, retirement estimates, and military buyback proof.

🎯 Wrap-Up: You're No Longer a Rookie

You didn't just read about your benefits — you took the first real step toward owning them. Let's recap what you've learned in New Fed 101:

• How federal retirement actually works (and how to make it work for you)
• What the three pillars of your future income are — and how they fit together
• Why your Service Computation Dates (SCDs) matter for everything
• How your leave can convert to cash, credit, or a better retirement
• What the TSP really is (not just a savings plan — a wealth engine)
• Why FSAFEDS might be the biggest untapped paycheck booster in government
• And the rookie mistakes that cost feds thousands — that you'll now avoid

🧭 From Here to Retirement: You've Got This

This isn't just a job — it's a launchpad for a powerful, well-funded life after federal service. You now understand:

• ✅ How to grow your money
• ✅ How to protect your benefits
• ✅ How to make smarter choices each Open Season
• ✅ How to avoid pitfalls others don't even see coming

And the best part? You don't have to figure it out alone. This is just one module in your MyFedPath journey.

🚀 Final Thought: You Are Your Own Best Project Manager

No one cares about your future like you do — and no one else will build it for you. But now you have the knowledge, the tools, and the plan. You've gone from asking, "Where do I even start?" to saying, "Let's do this right."

Welcome to the next level. Your future just got upgraded.

📘 Quick Glossary: Terms & Acronyms