OPM Offers Employees Childcare Subsidy

By Elizabeth Saloom, October 21, 2003

To help employees and their families pay for childcare, the Office of Personnel Management (OPM) offers a childcare subsidy.

The program applies to all OPM full-time employees with children up to age 13 and disabled children under 18. The kids must be enrolled in childcare that is licensed or regulated by state or local authorities. The subsidy can be used for summer care too.

The amount an employee receives depends on total family income and the cost of childcare. Family income includes childcare support, in the event of divorce. OPM will pay 70 percent of childcare costs for employees with total family income up to $39,000, 40 percent for those with incomes of $40,000 to $55,000, and 25 percent for those in the $55,001 to $60,000 range. Those earning over $60,000 are ineligible for any subsidy.

Currently 23 OPM employees are receiving 70 percent subsidies, eight employees are receiving 40 percent, and four employees are getting 25 percent. As of last March, there were 3,549 employees at OPM and 35 of them were receiving a subsidy of one sort.

OPM spokesman Mike Orenstein said the program has been running since March 2000. President Bush signed legislation authorizing agencies to make childcare subsidy programs permanent in 2001. Employees must submit documentation of their family income in order to apply.

The program also works to OPM's benefit, Orenstein noted, because it helps reduce absenteeism and turnover. Childcare subsidies can be used as recruitment and retention tools as well for OPM.

The agency has information on the program on its intranet site and employees are encouraged to apply.