Department of Defense civilian employee benefits track the standard federal package administered by the Office of Personnel Management, plus a handful of DoD-specific programs. That means health insurance through FEHB, a three-part retirement system built around FERS and the Thrift Savings Plan, group life insurance, paid leave, and access to programs like student loan repayment, transit subsidies, and a pilot allowing commissary shopping. Roughly 695,000 people work as DoD civilians as of early 2026, and the benefits below apply broadly across that workforce.
Health Insurance
DoD civilians are eligible for the Federal Employees Health Benefits program (FEHB), which covers more than eight million federal employees, retirees, and family members. You choose from Fee-for-Service, HMO, High Deductible, and Consumer-Driven plans, with 276 options nationwide as of 2021 and availability tied to geography. Enrollment comes in three tiers: Self Only, Self Plus One, and Self and Family.
The government pays roughly 70 percent of the premium. Your share is deducted pre-tax through automatic premium conversion. There are no waiting periods and no exclusions for pre-existing conditions. Coverage renews each year automatically unless you make a change during Open Season (typically November and December) or have a qualifying life event such as marriage, divorce, or the birth of a child. New employees have 60 days from appointment to enroll.
As of December 2020, more than 492,000 DoD employees were enrolled: about half in Self and Family, 36 percent in Self Only, and 14 percent in Self Plus One.
Dental and Vision
Supplemental dental and vision coverage is available through the Federal Employees Dental and Vision Insurance Program (FEDVIP). Unlike FEHB, the government contributes nothing toward FEDVIP premiums; you pay the full cost, though it’s withheld pre-tax. You must be eligible for FEHB to enroll in FEDVIP, but you don’t have to actually be enrolled in a health plan.
Seven nationwide dental carriers participate, including Aetna, Delta Dental, MetLife, and UnitedHealthcare. In-network preventive services are covered at 100 percent with no deductibles, and there are no waiting periods for major services like crowns, implants, or orthodontia. Five nationwide vision carriers, including VSP and Blue Cross Blue Shield FEP Vision, cover exams, frames, lenses, and laser surgery discounts. Enroll or change plans during Open Season or within 60 days of a qualifying life event, through the BENEFEDS portal at benefeds.gov.
Retirement
Most DoD civilians hired after 1987 fall under the Federal Employees’ Retirement System (FERS), which has three parts: a defined-benefit pension, Social Security, and the Thrift Savings Plan.
The FERS Pension
Your contribution rate depends on when you were hired. Employees hired before 2013 pay 0.8 percent of salary; those hired in 2013 pay 3.1 percent; and those hired in 2014 or later pay 4.4 percent. The last group is now roughly half of all federal civilian employees.
The formula: 1 percent of your “high-3” average salary (the highest average basic pay over any three consecutive years), multiplied by your total years of creditable service. Retire at age 62 or older with at least 20 years of service and the multiplier rises to 1.1 percent. Firefighters, law enforcement officers, and air traffic controllers get an enhanced rate of 1.7 percent for their first 20 years and 1 percent after that.
FERS has five retirement pathways: optional, early, deferred, disability, and postponed. A smaller number of rehired employees with prior service may sit under the older Civil Service Retirement System or CSRS-Offset and have six months from appointment to elect a transfer to FERS. Qualifying military service can be “bought back” to count toward civilian retirement.
Thrift Savings Plan
The TSP works like a 401(k). For FERS employees, the government automatically contributes 1 percent of basic pay every pay period whether you contribute or not. On top of that, your agency matches dollar-for-dollar on the first 3 percent you contribute and 50 cents on the dollar for the next 2 percent. Put in at least 5 percent and you get the full 5 percent match. CSRS employees get no agency contributions.
Anyone hired on or after October 1, 2020, is automatically enrolled at 5 percent in the Traditional (pre-tax) TSP, with funds initially directed to the G Fund. You can change your rate, switch between Traditional and Roth, or reallocate across 5 individual funds and 11 Lifecycle funds at any time. As of January 2026, participants can also convert traditional balances to Roth balances inside their accounts.
The 2026 elective deferral limit is $24,500. Catch-up contributions add $8,000 for eligible employees, or $11,250 for those aged 60 to 63. The annual additions limit, which includes both employee and agency contributions, is $72,000.
Life Insurance
The Federal Employees’ Group Life Insurance program (FEGLI), underwritten by MetLife, covered more than 720,000 DoD employees as of December 2020. Basic coverage is automatic on hire unless you waive it. The Basic Insurance Amount equals your annual pay rounded up to the next $1,000, plus $2,000. You pay two-thirds of the premium and the government pays one-third, and the rate doesn’t change with age.
Three optional tiers are available, all paid entirely by you at age-based rates:
- Option A adds $10,000 in coverage.
- Option B provides one to five multiples of basic pay, rounded to the next even $1,000.
- Option C is family coverage: $5,000 per multiple for a spouse and $2,500 per multiple for each eligible child, up to five multiples.
You must elect optional coverage within 60 days of hire, after a qualifying life event, or during a FEGLI Open Season, which are rare. Basic coverage is a prerequisite for any optional election.
Pay
Most DoD civilian positions sit on the General Schedule, a 15-grade structure with 10 steps per grade. For 2026, President Trump signed an executive order on December 18, 2025, authorizing a 1 percent across-the-board raise for GS employees, with no accompanying locality pay increase. The raise took effect during the first full pay period after January 1, 2026. The order also directed OPM to assess whether to provide up to a 3.8 percent raise for certain federal civilian law enforcement personnel.
Locality pay is added on top of the base GS rate and varies by geographic area. OPM publishes pay tables for each locality and a “Rest of United States” rate for areas without a specific designation. Blue-collar DoD employees are paid under the Federal Wage System, for which DoD serves as the lead agency, conducting wage surveys and issuing schedules through the Defense Civilian Personnel Advisory Service.
Agencies can offer recruitment, relocation, and retention incentives for hard-to-fill positions. Standard recruitment incentives reach 25 percent of annual basic pay over a service agreement of up to four years. A rule finalized in February 2026 delegated authority to agencies to approve waivers raising that cap to 50 percent of basic pay without per-case OPM sign-off. In December 2025, Defense Secretary Pete Hegseth separately directed the issuance of bonuses up to $25,000 for high-performing civilian employees.
Leave and Holidays
DoD civilians get 11 paid federal holidays a year. Annual leave accrues by length of federal service:
- Under 3 years: 13 days per year (4 hours per biweekly pay period).
- 3 to 14 years: 20 days per year (6 hours per pay period, with an extra 4 hours in the final period).
- 15 or more years: 26 days per year (8 hours per pay period).
You can carry over up to 30 days of unused annual leave if you’re stationed in the U.S., 45 days if overseas, or 90 days as a senior executive. Anything above the ceiling at year-end is forfeited under the “use or lose” rule, though it can sometimes be restored for reasons like administrative error or agency-caused scheduling problems.
Sick leave accrues at 4 hours per pay period, about 13 days or 104 hours a year, with no cap on accumulation. Full-time employees can use up to 104 hours of sick leave annually for family care and bereavement.
Under the Federal Employee Paid Leave Act, you get up to 12 weeks of paid parental leave following the birth, adoption, or foster placement of a child. You need at least 12 months of federal service and must sign a written agreement to return to work for 12 weeks afterward. Paid parental leave substitutes for unpaid FMLA leave and must be used within 12 months of the qualifying event. FMLA separately provides up to 12 workweeks of unpaid leave per year for serious health conditions or family caregiving, with the option to substitute accrued annual or sick leave.
Flexible Spending Accounts
The Federal Flexible Spending Account Program offers three pre-tax accounts. A Health Care FSA covers out-of-pocket medical expenses not paid by insurance. A Limited Expense Health Care FSA is available only if you’re enrolled in a High Deductible Health Plan with a Health Savings Account. A Dependent Care FSA covers eligible child care or elder care.
The minimum election is $100 per year. Health Care and Limited Expense FSAs allow unused balances to carry over, with a grace period through March 15 of the following year for eligible expenses. Enrollment doesn’t roll over; you re-enroll each year during Open Season or within 60 days of a qualifying event. Contributions save roughly 30 percent on federal taxes.
Student Loan Repayment
The Federal Student Loan Repayment Program lets DoD components repay up to $10,000 per calendar year toward your qualifying student loans, with a lifetime maximum of $60,000. You sign a written service agreement of at least three years. Leave voluntarily or get separated for misconduct and you have to repay the benefits. Payments count as taxable income.
The program is discretionary. Individual DoD components decide whether to offer it based on recruitment and retention needs. The Army runs a targeted version through the U.S. Army Acquisition Support Center for civilian acquisition workers with critical skills, funded through the Defense Acquisition Workforce Development Account.
Training and Education
DoD policy covers training, education, and professional development for civilian employees, including academic degree programs. Training and education activities must meet standards from Department of Education-recognized accreditation bodies, and selection for training must be based on merit. The policy applies to employees paid from both appropriated and non-appropriated funds.
Employee Assistance and Work-Life Programs
DoD Employee Assistance Programs (EAPs) provide free, confidential services around the clock. Core offerings include short-term counseling, crisis intervention, and referrals to longer-term treatment. Beyond mental health, EAPs cover legal consultations with licensed attorneys, personal financial planning, dependent care referrals for children and elders, and workplace conflict mediation. Magellan Federal is a primary service provider across the department.
The Defense Logistics Agency’s “Life Connections” program illustrates what individual DoD agencies offer: 24/7 phone access at 1-866-580-9046, critical incident response teams for workplace emergencies, and educational resources on topics from substance abuse prevention to retirement planning.
Commissary and Transit Benefits
DoD civilians have long had access to military exchanges for retail shopping. In late 2024, the Defense Commissary Agency launched a pilot extending commissary (grocery) shopping privileges to DoD civilian employees at select installations. The pilot was extended through December 31, 2025. Eligible employees shop at 15 to 16 participating stores, including Fort Irwin, Robins Air Force Base, Naval Station Norfolk, and Joint Base Langley-Eustis, using their Common Access Card. The pilot excludes family members of civilian employees, retired civilian employees, tobacco and alcohol purchases, and online ordering.
For commuting, the Mass Transportation Benefit Program provides a transit subsidy of up to $340 per month if you’re permanently stationed in the National Capital Region. Benefits load onto a registered SmarTrip card and cover bus, rail, subway, and vanpool costs, but not parking. The program, established under Executive Order 13150, requires you to relinquish any federally subsidized parking permit. Similar transit programs run at installations outside the NCR, such as Hanscom Air Force Base.
Long-Term Care Insurance Is Currently Suspended
The Federal Long Term Care Insurance Program covers costs of assistance with daily activities or care for severe cognitive conditions like Alzheimer’s disease. It’s open to federal employees, retirees, military members, and their qualified relatives, and coverage is portable into retirement.
OPM suspended new applications effective December 19, 2024, for a 24-month period, citing volatility in long-term care costs and a shrinking insurance market. During the suspension, no new enrollees can join and existing enrollees cannot increase their coverage. People already enrolled continue to receive benefits and can manage claims through the LTCFEDS portal.
Telework Access Has Narrowed
If you’re weighing DoD civilian employment expecting broad remote-work flexibility, that changed in 2025. A presidential memorandum issued January 20, 2025, directed agencies to end remote work and return employees to full-time in-person work. Secretary Hegseth followed on January 31, 2025, terminating existing agreements for personnel working remotely or teleworking within 50 miles of their agency worksites, with exemptions requiring his personal approval.
As of March 2026, DoD telework policy allows only limited, case-by-case exceptions: employees with approved reasonable accommodations, approved deferred resignations, or Secretary-approved return-to-office exemptions. Military spouses are categorically exempt from the return-to-office requirement for remote work. Situational telework for facility closures, short-term illness, or weather emergencies must be approved in advance on a case-by-case basis and documented on DD Form 2946. Before these changes, roughly 62,000 DoD civilians, about 8 percent of the workforce, teleworked or worked remotely; by late 2025, OPM reported that around 90 percent of federal employees were on-site full-time.