New Federal Employee Benefits: First 60 Days Enrollment Checklist (2026)

When you start a federal job, you enter a 60-day enrollment window during which you can sign up for health insurance, life insurance, dental and vision coverage, and a flexible spending account — without needing to answer medical questions or wait for Open Season. Miss that window and most of those elections are locked until the next Federal Benefits Open Season in November.

This guide walks through every benefit decision, what happens automatically on day one, what you must actively elect, and where the biggest financial mistakes occur. It applies to new General Schedule (GS), Wage Grade (WG), and Senior Executive Service (SES) employees under FERS.

What happens automatically on day one

Not everything requires an election. Three things start without any action on your part:

FEGLI Basic life insurance

You are automatically enrolled in FEGLI Basic coverage the first day you enter a pay and duty status — you do nothing.² Basic coverage equals your rounded-up annual salary (rounded to the nearest $1,000) plus $2,000. If you earn $87,500, your Basic coverage is $89,000. Your share of the premium is $0.16 per $1,000 of coverage biweekly; the government pays two-thirds of the total cost. You can waive Basic, but declining free employer-subsidized insurance at the start of your career is rarely optimal.

TSP auto-enrollment at 5%

If you were hired on or after October 1, 2020, your agency automatically deducts 5% of your basic pay each pay period and deposits it into your TSP Traditional (pre-tax) account.⁵ You do not need to enroll — it happens automatically. You can change the contribution rate or switch to Roth TSP at any time, but the default ensures you receive the full agency match from day one.

TSP agency match (FERS employees)

FERS employees receive two types of TSP agency contributions:⁵

• 1% automatic contribution: Your agency deposits 1% of basic pay every pay period regardless of whether you contribute anything. This is free money.
• Matching contributions: Dollar-for-dollar on the first 3% of basic pay you contribute, and 50 cents on the dollar for the next 2%. If you contribute 5%, the agency adds 5% (1% automatic + 3% match + 1% half-match). Total compensation from TSP: 10% of basic pay.

If you reduce your contribution below 5%, you leave agency match on the table permanently — those pay periods are gone. The 5% default gets you the full match. Consider increasing it, but do not decrease it.

FERS retirement contributions

If you were hired on or after January 1, 2014, you are enrolled in FERS-FRAE (Further Revised Annuity Employee) and contribute 4.4% of basic pay to your retirement system every pay period.⁶ This contribution is post-tax — unlike TSP, it does not reduce your taxable income. It does, however, reduce how much of your eventual FERS annuity is taxable (the IRS Simplified Method assigns a tax-free exclusion ratio). No action required — your HR office sets this up automatically based on your hire date.

Active elections you must make within 60 days

1. FEHB — Federal Employees Health Benefits

FEHB is the federal government's health insurance program. You have 60 days from your first day of federal employment to select a plan.¹ If you take no action, you have no FEHB coverage — there is no default enrollment for health insurance (unlike TSP). A comparison of plan types:

The government subsidy: OPM pays a significant portion of your FEHB premium. For 2026, the government contribution cap is $8,444 (self-only), $18,490 (self plus one), or $20,229 (family).⁷ Your share is deducted pre-tax under §125 premium conversion — you do not pay income tax or FICA taxes on this deduction as a federal employee. This tax benefit disappears in retirement (post-retirement FEHB premiums are post-tax), which matters for long-term tax planning.

The 5-year rule: To carry FEHB into retirement, you must be continuously enrolled in FEHB for the 5 years immediately before retirement (or from your first opportunity to enroll if less than 5 years). Enrolling now and maintaining coverage counts toward that clock. Waiving FEHB entirely — even temporarily — can disrupt this requirement. See FEHB Plan Selection Guide for how to evaluate specific plans.

HDHP + HSA strategy: If you're young and healthy, an FEHB HDHP plan qualifies you for a Health Savings Account (HSA). The triple tax benefit (pre-tax contribution, tax-free growth, tax-free medical withdrawals) can be worth tens of thousands over a career. See the HSA for Federal Employees guide for a full comparison.

2. FEGLI Optional life insurance

FEGLI Basic (described above) is automatic. Optional coverage — Options A, B, and C — requires active election within 60 days of hire, and no medical exam or health questions are required during this window.² After the window closes, enrolling in Optional coverage requires a life event or a medical underwriting exam that many applicants fail.

Option B strategy for new employees: At age 25–29, Option B coverage at 5× salary costs roughly $0.65/biweekly per $1,000 of coverage — the cost is low precisely because you are young and healthy. The premium rises sharply in five-year age bands and the option becomes expensive in your 60s. If you have dependents who rely on your income, electing Option B now, at the cheapest possible rates, is typically better value than private term insurance of equivalent coverage. The tradeoff is that FEGLI Option B has no cash value and no portability after retirement at no-reduction terms. See the FEGLI Life Insurance Guide for a detailed analysis of whether to keep or reduce coverage at retirement.

Beneficiary designation (SF-2823): Your FEGLI benefits do not pass through your will — they follow the beneficiary on file with OPM. Complete SF-2823 within your first few weeks and update it after any major life event (marriage, divorce, death of a beneficiary). If no SF-2823 is on file, benefits pass by statutory order: widow/widower → children equally → parents → estate.

3. FSAFEDS — Flexible Spending Accounts

FSAFEDS offers three accounts: HCFSA (health care), DCFSA (dependent care), and LEX HCFSA (limited-expense health care for HDHP/HSA enrollees). New employees have 60 days to enroll, but must do so before October 1 of the plan year.³ 2026 limits: HCFSA $3,400 / DCFSA $7,500 / LEX HCFSA $3,400.

FSAFEDS elections are pre-tax and reduce your taxable income, Social Security taxes, and Medicare taxes — a combined tax savings that often exceeds 30% of the elected amount for GS-9 through GS-14 employees. A GS-12 family spending $7,500 on childcare saves roughly $2,250 in combined taxes by routing it through a DCFSA. See the full FSAFEDS Guide.

4. FEDVIP — Dental and Vision Insurance

FEDVIP is separate from FEHB and covers dental (11 carriers, 21 plans in 2026) and vision (5 carriers, 10 plans in 2026).⁴ New employees have a 60-day enrollment window. Unlike FEHB, FEDVIP has no 5-year continuity rule for retirement — you can enroll at any point (Open Season or QLE), and retirement premiums are post-tax. For new employees: if you have significant dental needs, enrolling early secures coverage before any waiting periods apply. See the FEDVIP Guide.

TSP decisions beyond the 5% default

Auto-enrollment at 5% handles the match. But you still face two active decisions that have significant long-term impact:

Roth vs. Traditional TSP

The 5% auto-enrollment goes into Traditional (pre-tax) TSP by default. You can switch to Roth (post-tax, tax-free in retirement) or split between the two at any time via TSP.gov — there is no window requirement. The general principle for early-career federal employees:

• Roth TSP is typically better when you're young and expect your income to grow significantly. Paying taxes now on contributions at a lower rate, then withdrawing tax-free in retirement at what would have been a higher rate, saves money across the career.
• Traditional TSP is better if you're currently in a high bracket (e.g., senior SES) and expect a lower bracket in retirement, or if you want the immediate tax deduction.
• The agency match always goes into Traditional TSP regardless of your own contribution type — you cannot control that.

See TSP Strategy for Federal Employees for the full Roth vs. Traditional analysis, including the IRMAA interaction in retirement.

Fund allocation

New TSP accounts default to the age-appropriate Lifecycle (L) Fund — for example, L 2060 if you plan to retire in roughly 2060. The L Funds automatically rebalance toward conservative allocations as the target date approaches. This is a reasonable default for employees who do not want to manage allocations actively.

If you want to allocate manually, the five core TSP funds are: G (government securities, ~4.4% yield, zero principal risk), F (fixed income), C (large-cap U.S. stocks, mirrors S&P 500), S (small/mid-cap U.S. stocks), and I (international stocks). The G Fund's unique zero-principal-risk property has no equivalent in an IRA — this is one reason many FERS retirees keep some TSP assets even after retirement rather than rolling everything to an IRA. See TSP Fund Allocation Guide.

2026 TSP contribution limits

The 5% default gets you the match but not the IRS contribution limit. Maximizing TSP early in your career compounds dramatically over time:

• Base limit: $24,500 per year (2026) — equivalent to about $942/pay period on a 26-pay-period schedule⁸
• Catch-up (age 50+): Additional $8,000/year
• Super catch-up (ages 60–63): $11,250 additional instead of $8,000 (SECURE 2.0 § 109)

Beneficiary designations — do not skip these

Federal benefits do not automatically pass to your spouse or children. They follow the specific beneficiary designation forms on file with the respective agencies. Fill these out during your first week:

TSP-3 supersedes any will — if your TSP-3 names an ex-spouse and your will says otherwise, the TSP-3 controls. Keep designations current after life events. See the Federal Employee Estate Planning Guide for the full picture.

Understanding your first paycheck

Federal employees receive a Leave and Earnings Statement (LES) every pay period, available via your agency payroll portal (usually Employee Express, MyPay, or ESS). Key deductions for a new FERS employee hired in 2026:

Why the FERS contribution is post-tax matters: Because you already paid income tax on those 4.4% contributions, a portion of every FERS annuity payment you receive in retirement will be tax-free (using the IRS Simplified Method). This is the FERS exclusion ratio. A GS-11 who contributes 4.4% over a 30-year career will have roughly $230,000–$300,000 in after-tax contributions — reducing taxable retirement income by several hundred dollars per month for ~16 years. See Federal Retirement Tax Guide.

The 10 most common new-employee benefits mistakes

1. Missing the FEHB 60-day window. You go without health insurance until November Open Season. If you have a medical event in the interim, it is uncovered. Enroll within your first week.
2. Waiving FEHB entirely. Breaks the 5-year continuous enrollment clock required to carry FEHB into retirement. Even if a spouse's employer plan seems better, weigh that against the retirement portability cost.
3. Contributing less than 5% to TSP. You permanently lose the agency match for those pay periods. At 3% contribution you leave 2% agency match (roughly $1,200–$2,000/year at GS-9) on the table.
4. Not electing FEGLI Optional B within 60 days. You cannot enroll later without passing medical underwriting. At age 30, Option B at 5× is roughly $340/year for $300,000+ of coverage. That window closes.
5. Skipping TSP-3 beneficiary designation. The statutory default may not match your intent. A single GS-7 who dies with no TSP-3 on file has their balance pass to parents or estate — not a domestic partner.
6. Defaulting to Traditional TSP without considering Roth. For employees with 25+ years to retirement and current income in the 22% bracket, Roth TSP likely produces a better lifetime outcome. The default is Traditional — you must actively switch.
7. Opening an HCFSA while enrolled in an FEHB HDHP. This makes you ineligible for an HSA — use the LEX HCFSA instead. The IRS considers a general-purpose HCFSA to disqualify you from HSA contributions for that entire calendar year.
8. Not understanding the FERS contribution is post-tax. Employees expecting it to reduce their tax bill (like TSP) are surprised. Budget accordingly in your first pay period.
9. Assuming the L Fund is the best allocation. The L Fund is a reasonable default but its international and bond allocation may not match your goals. Review it within your first 90 days.
10. Postponing beneficiary forms. Life events like a new child or marriage should trigger updates, but the forms need to be on file first. Do them now, before you forget.

Six-month financial priorities for new federal employees

Beyond the 60-day enrollment window, here are the financial priorities for your first six months:

• Month 1–2: Complete all benefit enrollments (FEHB, FEGLI, FSAFEDS, FEDVIP). File TSP-3, SF-2823, SF-2808. Set TSP contribution rate to at least 5% (capturing full match).
• Month 2–3: Review your first two or three LES statements. Confirm FEHB deductions are pre-tax, TSP deductions show up correctly, and FERS contributions are appearing. Discrepancies are easier to fix early.
• Month 3–4: Revisit TSP allocation. If you want to manage allocations manually, set your fund mix. If the L Fund is fine, leave it and focus elsewhere.
• Month 4–5: Establish an emergency fund outside TSP (3–6 months of expenses). Federal employment is generally stable but VERA offers, agency reorganizations, and RIF actions do occur. A cash reserve lets you make benefit decisions from a position of strength, not desperation.
• Month 5–6: Consider whether to open an IRA (Roth IRA if income allows; backdoor Roth if above the income limit) to supplement TSP. See IRA Strategy for Federal Employees.

Sources

1. OPM: New Federal Employee Enrollment — FEHB 60-day enrollment window for new hires.
2. OPM: Federal Employees' Group Life Insurance (FEGLI) — Basic automatic enrollment; Optional coverage 60-day window without medical underwriting.
3. FSAFEDS.gov: Enroll — New employee 60-day enrollment window; October 1 plan year cutoff.
4. OPM: FEDVIP Dental and Vision Insurance Program — 60-day new employee enrollment window; 11 dental / 5 vision carriers in 2026.
5. TSP.gov: Contribution Types — 5% automatic enrollment for employees hired on or after Oct 1, 2020; agency match structure (1% automatic + up to 4% matching).
6. OPM: FERS Information — FERS-FRAE 4.4% employee contribution rate for employees hired on or after January 1, 2014.
7. OPM: FEHB Plan Information 2026 — Government contribution caps for 2026: $8,444 self-only / $18,490 self+1 / $20,229 family.
8. IRS Rev. Proc. 2025-67 — TSP elective deferral limit $24,500 for 2026; catch-up $8,000 (age 50+); super catch-up $11,250 (ages 60–63, SECURE 2.0 § 109).

Values verified as of June 2026. FEHB enrollment window: OPM new-hire rules. FEGLI Optional window: OPM FEGLI handbook. TSP auto-enrollment rate: 5% for hires on or after Oct 1, 2020 (TSP Bulletin 25-3). FERS-FRAE contribution: 4.4% (FERS FRAE provisions, 5 U.S.C. § 8422). TSP limits: IRS Rev. Proc. 2025-67. FEHB 2026 government contribution: OPM Benefits Administration Letter.