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 Board of Examiners and the staff of the Office of Recruitment, Examination, and Employment (HR/REE) determine a Foreign Service Officer Career Candidate's entry salary. In accordance with 22 C.F.R. 11.1(g)(iii) and 3 FAM 2216.2-7, the Board of Examiners finds that there is a need in the Foreign Service for candidates with the special experience and skills listed in the FP-5 and FP-4 education and/or experience section.

Salaries are set through a two-part process.

Part I -- Determine grade and step based on education and/or experience.

*Candidates with Bachelor's degree receive one additional step for each year of professional experience. For example, a candidate with a Bachelor's degree plus five years of professional experience receives FP-6, Step 10 ($41,524).

Candidates without a college degree but with more than six years of professional experience receive one additional step for each year of professional experience above six years. For example, a candidate without a college degree with 11 years of professional experience receives FP-6, Step 10 ($41,524).

**Candidates with Master's degree or law degree (JD) receive one additional step for each year of professional experience. For example, a candidate with a Master's or law degree (JD) with five years of professional experience receives FP-5, Step 10 ($46,449).

Candidates with Bachelor's degree receive one additional step for each year of professional experience above six years. For example, a Bachelor's degree plus 10 years of professional experience receives FP-5, Step 9 ($45,096).

Candidates without a college degree receive one additional step for each year of professional experience above 12 years. For example, a candidate without degree with 17 years of experience receives FP-5, Step 10 ($46,449).

***Candidates receive one additional step, up to the maximum step of 14, for each year of professional experience beyond the minimums prescribed for FP-4, Step 5 ($49,448). For example, a Doctorate plus nine years of professional experience receives FP-4, Step 14 ($64,519). A Bachelor's plus 15 years of professional experience receives FP-4, Step 8 ($54,033). No college degree plus 25 years of professional experience receives FP-4, Step 12 ($60,815).

NOTES:

"Professional experience" can be in any field, but it must be "professional" as that term is generally used. It does not mean clerical, sales or wage-grade work, or any other work not usually requiring a bachelor's or higher degree.

"Professional experience" must be full-time. Part-time work will be prorated. No credit will be given for periods of less than a year.

Degrees must be from accredited institutions.

Part II - Attempt to match salary for those who lose money in joining the Foreign Service.

Once grade and step are determined, based on education and experience in Part I, look at the candidate's current salary to see if he/she will lose money by joining the Foreign Service. If so, the starting salary should be raised to the step in the grade for which the candidate is qualified that is closest to the current salary. If the current salary falls between two steps, the higher of the two steps is the starting salary. If the current salary is too high to be matched in the class for which qualified, step 14 of that class is the starting salary. Federal civilian employees currently receiving DC locality pay will be allowed to include DC locality pay as part of their "current salary." Federal civilian employees who do not currently receive DC locality pay will not be allowed to include locality pay as part of their "current salary."

NOTES:

"Current salary" means salary earned for at least 90 days prior to appointment as a Foreign Service Career Candidate. Candidates must submit proof of the "current salary;" for example: a copy of 90 days' worth of earnings statements; SF-50 Notification of Personnel Action (for federal civilian employees only); a statement on letterhead from the Human Resources Office of their most recent employer; or other appropriate documentation. For those in the private sector, "Current salary" also means that there must not have been a break in service of more than *45 calendar days* between the candidate's most recent employment and appointment as a Foreign Service Career Candidate. For federal civilian employees, there must not have been a break in service of more than three calendar days between their civilian employment and appointment to the Foreign Service (in accordance with government-wide regulations).

*Changed from 10 workdays to 45 calendar days on September 13, 2001.

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.

Leave and Allowances

Many potential Foreign Service Officers are concerned about whether they will have the time or the resources to visit their families and friends in the United States while they are posted overseas. This section addresses the issue of time away from the job. It also explains some of the allowances provided to Foreign Service Officers to ensure that they can meet the expenses associated with moving and living overseas.

Leave

The Foreign Service provides its employees with three basic types of leave: annual leave, sick leave, and home leave. Information regarding each type of leave follows:

Annual Leave allows employees to take an annual vacation and to take time off for personal and emergency purposes. Foreign Service Officers accrue annual leave based upon their years of service, as follows:

Sick Leave may be granted when an employee is unable to perform his or her duties due to sickness, injury, or pregnancy. Sick leave may also be utilized to obtain medical, dental, oroptical care. Sick leave accrues at a rate of 13 days per year.

Home Leave is provided to Foreign Service Officers by order of the Congress to ensure that Foreign Service personnel have the opportunity to spend time in the United States while pursuing careers overseas. Home leave accrues at the rate of 15 workdays per year spent on overseas assignment. In addition to providing paid home leave, the U.S. Government also will pay for travel of the officer and his or her family to the officer's home in the United States.

Federal Holidays

In addition to the various types of leave described above, Foreign Service Officers are entitled to all Federal Holidays. The Department of State currently observes the following Federal holidays:

New Year's Day
Martin Luther King's Birthday
President's Day
Memorial Day
Independence Day
Labor Day
Columbus Day
Veteran's Day
Thanksgiving Day
Christmas Day

In addition to the above holidays, the U.S. Government also observes some local holidays celebrated at overseas posts of assignment.

Allowances

The U.S. government provides many allowances to ease the financial difficulties associated with frequent moves around the world. A sample of these allowances follows.

Advances of Pay are granted to Foreign Service Officers transferring from one post to another. Under this program, officers may receive up to three months of pay in advance to meet the financial burdens associated with transferring from one post to another. Advances of pay are interest-free, and are repaid through payroll deductions over a period of several months.

Post Allowances are paid to Foreign Service Officers serving in posts where the cost-of-living is significantly higher than in Washington, D.C.

Post Differential is additional compensation, of up to 25% of base pay, paid to employees assigned to hardship posts where extraordinarily difficult conditions exist. Employees posted to exceptionally dangerous posts may receive additional danger pay of up to 25% of base pay.

Moving Around the World

Most Foreign Service Officers spend approximately 60% of their careers overseas. For this reason, issues such as travel to post, transportation of household effects, and housing overseas are important.

Travel

The United States government pays the travel expenses incurred by Foreign Service Officers and their dependents when traveling to overseas assignments. The government also will pay for one overseas round-trip ticket each year per dependent attending high school or college in the United States. Furthermore, the government will provide one round-trip ticket per year to children of separated parents when one of the parents is stationed overseas with the Foreign Service.

Housing

Housing for Foreign Service Officers varies around the world. In many overseas posts, Foreign Service Officers live in accommodations that are either owned or leased by United States government. Often, these accommodations are furnished. Foreign Service Officers who live in government-sponsored housing do not pay rent, nor do they pay for basic utilities, except for personal telephone service.

At overseas posts where the government neither owns nor leases accommodations, Foreign Service Officers are given a Living Quarters Allowance. This allowance is intended to cover the average costs of rent, heat, electricity, and water in the city where the post is located.

Foreign Service Officers assigned to Washington, D.C., are responsible for locating and paying for their own accommodations. A limited supplement to defray costs is provided to incoming officers and officers returning from overseas assignments.

Shipment And Storage Of Effects

Throughout a Foreign Service Officer's career, the United States government will either ship or store an officer's household effects, up to a certain weight limit. As a general rule, Foreign Service Officers are entitled to a combined shipping and storage allowance of 18,000 pounds net. As quarters overseas in many cases are not as large as those i the U.S., continuing storage of those effects not shipped to post will be stored at government expense.

If an officer is assigned to government furnished quarters, he or she may ship up to 7,200 pounds of household effects to post at government expense. The government will pay for the storage of the remainder of the officer's furniture and effects as long as the combined total of what is being shipped and what is being stored does not exceed 18,000 pounds.

If an officer does not receive government furnished housing, he or she may ship up to 18,000 pounds to post at government expense. If the officer does not ship the full 18,000 pounds to post, the government will pay for the storage of the effects that are not sent to post up to a total of 18,000 pounds.

Officers assigned to certain designated hardship posts where the acquisition of basic foodstuffs and dry goods is difficult or impossible will be granted a consumables shipment allowance in addition to their normal shipping allowance. The purpose of this allowance is to allow the officer to ship certain goods unobtainable at post.

Finally, the U.S. government will pay for the shipment of one privately owned car to and from overseas posts, subject to certain restrictions.

The Office of Employee Relations (PER/ER/EP) is the policy authority for all issues with regard to leave. Please direct any specific questions to them.

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.