By Reg Jones
Q. I was a federal law enforcement officer who retired this year under CSRS. My wife is a federal employee who will work six or seven more years. We have Blue Cross/Blue Shield-Fed as our health plan. The premiums have always been paid out of my salary. Would it be most beneficial for us to have the health coverage premiums made from my annuity or from my spouse’s salary. Would there be any negatives to having those premiums made from my spouse’s salary?
A. It would make sense for your wife to pay the premiums if she either works for the Postal Service or can participate in premium conversion. If she works for the Postal Service, they pay a higher percentage of the premiums. If she didn’t waive her right to premium conversion, she can make those payments with pretax dollars.