The start of a new year is an ideal time for public sector employees to review their benefit elections, update their personal information, and ensure they're making the most of the programs available to them. Here's a practical checklist of items to consider as we begin 2026.
Benefits Review
Retirement contributions — Review your supplemental retirement plan contributions (TSP, 403(b), 457(b)). The IRS adjusts contribution limits periodically, and maximizing tax-advantaged savings is one of the most impactful financial moves available to public employees.
Health insurance — If you made changes during open enrollment, verify that your new elections are reflected correctly on your first pay statement of the year.
Beneficiary designations — Life changes such as marriage, divorce, birth of a child, or death of a beneficiary should prompt an update to your designations on all benefit accounts. This is often overlooked and can create complications.
Leave balances — Understand your agency's policies on annual leave carryover and any use-or-lose provisions that may apply.
Career and Service Review
Service credit verification — Ensure your official personnel records accurately reflect your total years of service. Errors in service credit can affect retirement eligibility and benefit calculations.
Training and development — Many agencies offer professional development programs, tuition assistance, or certification support. The start of the year is a good time to explore these opportunities.
Position and grade — If you're approaching retirement eligibility, understand how your current position and salary factor into your benefit calculations. In many systems, benefits are based on your highest average salary during a specific period.
Information Gathering
Estimate your retirement benefits — Most retirement systems offer online tools or printed statements that estimate your projected benefits. Reviewing these annually helps you track your progress toward retirement readiness.
Understand your healthcare trajectory — If you're within 10 years of your planned retirement date, begin familiarizing yourself with retiree healthcare options and Medicare enrollment timelines.
Review your emergency preparedness — Ensure you have adequate savings outside of retirement accounts for unexpected expenses, and that your insurance coverage (health, life, disability) is appropriate for your current situation.
A Good Habit
Making this kind of annual review a regular habit — even if it only takes an hour or two — can help you stay on track and avoid surprises. Keep copies of your benefit statements, enrollment confirmations, and beneficiary designation forms in an accessible location.
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All content is for general educational purposes only. Consult qualified professionals for advice specific to your situation.