Remuneration Package
As with any career, potential Foreign Service Officers are concerned not only with the long-term opportunities and effects of the job, but are also interested in what remuneration and benefits they will receive. This section discusses starting salaries, health and life insurance packages, and retirement plans.
Salary
The Standard Operating Procedure for determining entry level salaries for Foreign Service Officer Career Candidates is:
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1. General entry for all candidates without a college degree 2. Candidates who have a Bachelor's degree* in any field 3. Candidates who have a Master's, a law degree or both 4. Candidates with a Doctorate or a Master's degree in law |
FP 6, Step 1 FP 6, Step 5 FP 5, Step 5 FP 5, Step 7 |
$30,719 $34,575 $38,675 $41,030 |
Within each grade, additional steps may be added based on the candidate's years of professional experience. FP-6 salary range is $30,719 to $45,112. FP-5 salary range is $34,362 to $50,462. All salaries are annual rates based on January 2001 schedule.
*All degrees must be from an accredited institution.
Health Insurance
Foreign Service Officers are eligible to enroll in a wide variety of health insurance plans, including fee-for-service plans and health maintenance organizations. The employee's portion is paid through payroll deductions.
Foreign Service Officers and their families are eligible for health insurance coverage from the date of enrollment. The effective date of health insurance coverage is the first pay period following the date of enrollment.
Life Insurance
Foreign Service Officers are eligible to participate in the Federal Employees' Group Life Insurance plan (FEGLI). The FEGLI plan offers low rates that are paid through payroll deductions. The U.S. Government pays one-third of the cost of this insurance.
Participation in the FEGLI plan is voluntary. The plan is intended as a form of immediate protection against financial hardship or loss in the event of death. It is not offered as a form of term life insurance with a cash value, such as might be purchased through private insurance agents.
Retirement Benefits
Members of the Foreign Service first hired by the government after 1983 participate in the Foreign Service Pension System, a program designed to provide retired personnel with an annuity, Social Security benefits, and the Thrift Savings Plan. Under the Foreign Service Pension System, Foreign Service Officers who have reached the age of 50, and who have served for 20 years or more, are eligible for retirement with a full annuity. Officers who have served for 10 years and are at least 57 years of age (55-56 years of age under certain conditions) are eligible to retire with a reduced annuity. Retirement at 65 years of age is mandatory.
The Foreign Service Pension System is a three-tiered program. The three tiers of the program are listed below:
1. Foreign Service Basic Benefit
The Foreign Service Basic Benefit is designed to provide Foreign Service Officers with an annuity upon retirement. The plan provides for an annuity equivalent to a certain percentage of the average of a retiree's highest three annual salaries.
For an employee with 20 years or more of service, the percentage of the annuity is determined by multiplying the number of years of service by 1.7% for the employee's first 20 years of service, and by 1.0% for each year of service in excess of 20 years. For example, someone retiring with 20 years of service would receive an annuity of 34% of the average of his or her three highest annual salaries. An individual retiring with 25 years of service would receive an annuity of 39%.
Foreign Service Officers who retire before their 62nd birthday, and who are otherwise eligible for a full annuity, may be eligible to receive an annuity supplement. This supplement is roughly equivalent to the social security benefits the retiree would receive if he or she met the age requirement.
Participation in the Foreign Service Basic Benefit is paid by a payroll deduction of 1.7% of a Foreign Service Officer's basic pay. Participation in the plan is mandatory.
2. Social Security and Medicare
Retired Foreign Service Officers also are eligible to receive Social Security and Medicare, provided that they have reached the minimum age requirements and have contributed to the appropriate funds for a minimum period of time.
Social Security provides cash benefits to fully insured workers who retire at the age of 62 or later and to the survivors of fully insured workers. Medicare is a federal health insurance program that provides coverage beginning at age 65. Medicare includes inpatient hospital coverage and medical coverage.
Mandatory participation in Social Security and Medicare is paid through a payroll deduction of 7.65% of total earnings (up to a certain limit, whereupon contributions cease).
3. Thrift Savings Plan
Foreign Service Officers may participate in the Thrift Savings Plan (TSP), a long-term savings and investment program for federal employees designed to provide retirement income. The Thrift Savings Plan allows Foreign Service Officers to invest money in three different investment funds: the Government Securities Investment Fund; the Common Stock Index Investment Fund; and the Fixed Income Index Investment Fund.
Officers become eligible to participate in the Thrift Savings Plan approximately 6 to 12 months after their entry on duty. At this point, the employing agency automatically begins to contribute one percent of an officer's basic salary to a Thrift Savings Plan account in the officer's name. Officers may also choose to contribute up to 10% of their salaries (or $10,500, whichever is less) to their Thrift Savings Plan account. The officer's employing agency will make a matching contribution on a sliding scale for the first 5% that an officer contributes.
The Thrift Savings Plan provides two tax benefits. First, contributions to the plan are made on a before-tax basis. This means that contributions are deducted from an employee's paycheck before income taxes are calculated. Second, the money that is contributed to the Thrift Savings Plan account, as well as the earnings generated on that account, are tax-deferred; no income tax is due until the money is withdrawn from the account, usually after retirement.
The Department of State is committed to equal opportunity and fair and equitable treatment for all without regard to race, color, national origin, sex, religion, age, sexual orientation, disabling condition, political affiliation, marital status, or prior statutory, constitutionally protected activity.
The Department of State is committed to equal opportunity and fair and equitable treatment for all without regard to race, color, national origin, sex, religion, age, sexual orientation, disabling condition, political affiliation, marital status, or prior statutory, constitutionally protected activity.