WEBVTT NOTE This file was generated by Descript 00:00:00.039 --> 00:00:05.730 Lawrence: Welcome to The FED Weekly for 9-15 November 2025, your essential 00:00:05.730 --> 00:00:09.640 weekly briefing on the policies and proposals shaping your career, 00:00:09.909 --> 00:00:12.119 your benefits, and your retirement. 00:00:12.729 --> 00:00:17.059 Whether you’re a current federal employee navigating changes in the civil service, 00:00:17.430 --> 00:00:22.530 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:22.530 --> 00:00:27.219 is your source for the latest news from Capitol Hill and the executive branch. 00:00:27.886 --> 00:00:31.935 Each week, we cut through the noise to bring you the critical updates on budget 00:00:31.935 --> 00:00:37.455 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:37.455 --> 00:00:39.596 directly impact the federal community. 00:00:40.455 --> 00:00:43.396 Let's get you up to speed on what happened this past week. 00:00:44.071 --> 00:00:47.041 Issues That Affect Current and Retired Federal Workers 00:00:47.633 --> 00:00:50.284 The Government Shutdown: Uncharted Territory 00:00:50.869 --> 00:00:55.260 The most significant development of this reporting period was the confirmation 00:00:55.260 --> 00:01:00.669 that the 2025 federal government shutdown has moved into unprecedented territory. 00:01:01.270 --> 00:01:07.919 On Wednesday, 5 November 2025, the funding lapse reached Day 36, officially 00:01:07.919 --> 00:01:10.120 becoming the longest shutdown in U.S. 00:01:10.120 --> 00:01:10.690 history. 00:01:11.270 --> 00:01:17.399 This surpasses the previous 35-day record set during the 2018–2019 closure 00:01:17.450 --> 00:01:19.450 under the first Trump administration. 00:01:19.559 --> 00:01:23.369 The shutdown finally ended on 12 November after 43 days. 00:01:23.982 --> 00:01:28.192 The duration of this crisis has imposed immense financial and emotional 00:01:28.192 --> 00:01:30.051 burdens on the federal workforce. 00:01:30.531 --> 00:01:35.721 By the first week of November, approximately 670,000 federal employees 00:01:35.721 --> 00:01:41.411 were furloughed, while another 730,000 employees were deemed "excepted" and 00:01:41.411 --> 00:01:43.661 required to continue working without pay. 00:01:44.231 --> 00:01:48.891 These workers have already missed two full paychecks, forcing many to rely 00:01:48.891 --> 00:01:53.452 on credit cards, accrue debt, and purchase only essential groceries. 00:01:53.522 --> 00:01:58.101 The financial consequences are staggering; if the shutdown continues 00:01:58.101 --> 00:02:03.132 through 1 December 2025, the total amount of missing wages withheld 00:02:03.132 --> 00:02:07.161 from civilian federal employees will reach approximately $21 billion. 00:02:08.062 --> 00:02:11.981 This sustained economic pressure is not merely an inconvenience; it 00:02:11.981 --> 00:02:16.472 represents a fundamental threat to the financial stability of nearly 1.4 00:02:16.512 --> 00:02:17.792 million families. 00:02:18.759 --> 00:02:22.339 Furthermore, the cascading effects of the shutdown are impacting 00:02:22.339 --> 00:02:26.719 public services relied upon by both active employees and retirees. 00:02:27.280 --> 00:02:29.820 Critical safety net programs have been disrupted. 00:02:30.249 --> 00:02:35.160 For example, the Supplemental Nutrition Assistance Program, or SNAP, which 00:02:35.160 --> 00:02:40.779 supports 42 million Americans, effectively froze on 1 November 2025. 00:02:41.429 --> 00:02:44.679 Although a federal court ordered the Agriculture Department to use 00:02:44.679 --> 00:02:48.549 contingency funds to maintain the program, the timeline for the release 00:02:48.549 --> 00:02:52.719 of these funds remains uncertain, leading to widespread disruption. 00:02:53.159 --> 00:02:57.289 Similarly, risks to public health have emerged, as some Medicare and 00:02:57.289 --> 00:03:02.769 Medicaid patients lost access to remote medical care because telehealth waivers 00:03:02.769 --> 00:03:05.310 expired when the government shut down. 00:03:05.940 --> 00:03:09.699 These service disruptions highlight that the damage caused by the funding 00:03:09.699 --> 00:03:14.550 impasse extends far beyond the federal workforce itself, compromising essential 00:03:14.550 --> 00:03:19.199 public services used by a vulnerable population, including many retirees. 00:03:19.907 --> 00:03:23.677 Preparing for the 2025 Federal Benefits Open Season 00:03:24.291 --> 00:03:28.712 Despite the shutdown crisis, the annual window for benefits enrollment is here. 00:03:29.342 --> 00:03:34.131 The Office of Personnel Management (OPM) confirmed that the 2025 Federal 00:03:34.131 --> 00:03:40.932 Benefits Open Season will run from 10 November 2025 through 8 December 2025. 00:03:41.711 --> 00:03:46.022 This period is critical for all eligible current federal and postal employees, as 00:03:46.022 --> 00:03:51.201 well as annuitants, to enroll in, change, or adjust their health, dental, and vision 00:03:51.201 --> 00:03:54.281 coverage for the upcoming 2026 plan year. 00:03:54.891 --> 00:03:59.091 The timing of Open Season is particularly difficult for active employees. 00:03:59.451 --> 00:04:02.952 Furloughed workers may lack access to their government computer systems, 00:04:03.171 --> 00:04:07.671 official emails, or agency Human Resources staff, creating significant 00:04:07.671 --> 00:04:11.901 barriers to researching their options and making informed decisions 00:04:11.901 --> 00:04:13.782 about complex coverage changes. 00:04:14.437 --> 00:04:18.498 Crucially, OPM has advised that several health, dental, and vision 00:04:18.498 --> 00:04:21.208 plans will be discontinued for 2026. 00:04:21.888 --> 00:04:25.718 Enrollees currently participating in these specific programs must choose a 00:04:25.718 --> 00:04:29.968 new plan during the Open Season to ensure continued coverage in the new year. 00:04:30.537 --> 00:04:35.287 Specifically, six Federal Employees Health Benefits (FEHB) plans, one 00:04:35.287 --> 00:04:40.237 Postal Service Health Benefits (PSHB) plan, and one Federal Employees Dental 00:04:40.237 --> 00:04:44.278 and Vision Insurance Program (FEDVIP) plan will no longer be available. 00:04:44.758 --> 00:04:49.018 This mandatory decision-making for those eight discontinued plans, coupled 00:04:49.018 --> 00:04:53.317 with the existing financial stress of the shutdown, necessitates proactive 00:04:53.317 --> 00:04:58.488 planning by all affected employees and retirees starting 10 November 2025. 00:04:59.108 --> 00:05:05.027 For the 2026 plan year, OPM reports that the FEHB Program offers 132 plan options 00:05:05.027 --> 00:05:11.567 across 47 carriers, the PSHB Program offers 75 plan options, and FEDVIP offers 00:05:11.567 --> 00:05:14.698 21 dental and 10 vision plan options. 00:05:15.345 --> 00:05:17.806 Issues That Affect Retired Federal Workers 00:05:18.439 --> 00:05:20.850 WEP and GPO Repeal Implementation Update 00:05:21.454 --> 00:05:27.153 The Social Security Fairness Act, signed into law on 5 January 2025, ended the 00:05:27.153 --> 00:05:32.374 Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). 00:05:33.153 --> 00:05:37.414 These provisions historically reduced or eliminated Social Security benefits 00:05:37.414 --> 00:05:41.873 for individuals, including federal retirees covered by the Civil Service 00:05:41.873 --> 00:05:45.903 Retirement System (CSRS), who also received a pension based on work 00:05:45.903 --> 00:05:47.764 not covered by Social Security. 00:05:47.854 --> 00:05:52.653 The Act’s repeal was made retroactive to January 2024, triggering a 00:05:52.653 --> 00:05:57.464 monumental effort by the Social Security Administration (SSA) to adjust 00:05:57.464 --> 00:06:01.863 millions of beneficiary accounts and issue retroactive lump-sum payments. 00:06:02.445 --> 00:06:06.356 The key news for retirees during early November 2025 is the 00:06:06.356 --> 00:06:08.336 administrative timeline for completion. 00:06:09.035 --> 00:06:12.296 The SSA reported that the vast majority of beneficiary 00:06:13.306 --> 00:06:15.405 accounts—91 percent, totaling 2.5 00:06:15.405 --> 00:06:19.176 million cases—had been adjusted by June 2025. 00:06:19.836 --> 00:06:24.065 More complex accounts requiring manual processing, which included some of the 00:06:24.065 --> 00:06:28.965 most difficult cases, are expected to be fully updated, with past-due benefits 00:06:28.965 --> 00:06:31.946 released, by early November 2025. 00:06:32.086 --> 00:06:36.515 This marks the administrative conclusion of the SSA's primary effort to fulfill 00:06:36.515 --> 00:06:41.285 the law, signaling a shift from legislative anticipation to financial 00:06:41.285 --> 00:06:44.136 confirmation for the affected population. 00:06:44.763 --> 00:06:48.444 Accompanying this implementation, the Centers for Medicare and Medicaid 00:06:48.444 --> 00:06:53.434 Services (CMS) is resolving a secondary administrative issue where some 00:06:53.434 --> 00:06:58.534 beneficiaries experienced dual Medicare premium deductions from both their SSA 00:06:58.534 --> 00:07:00.583 benefits and their federal pensions. 00:07:01.144 --> 00:07:05.353 CMS is working to automatically refund those affected individuals. 00:07:05.844 --> 00:07:09.324 This concurrent effort demonstrates the government's focus on cleaning 00:07:09.324 --> 00:07:14.234 up the complex administrative trail left by the WEP and GPO repeal. 00:07:14.783 --> 00:07:19.434 As large lump-sum retroactive payments finalize, the SSA issued renewed 00:07:19.434 --> 00:07:23.613 warnings regarding scams related to the Social Security Fairness Act. 00:07:24.164 --> 00:07:28.433 Retirees are strongly cautioned against communications asking for payment to 00:07:28.433 --> 00:07:30.653 expedite or enhance their benefits. 00:07:31.104 --> 00:07:35.174 The SSA explicitly states that no government agency or reputable company 00:07:35.174 --> 00:07:40.563 will ever solicit personal information or request advanced fees for services in 00:07:40.563 --> 00:07:43.243 the form of wire transfers or gift cards. 00:07:43.303 --> 00:07:47.223 This guidance is critical for protecting recipients of the new benefits from 00:07:47.223 --> 00:07:49.993 fraud as the final payments are issued. 00:07:50.762 --> 00:07:53.541 2026 Cost-of-Living Adjustments (COLA) 00:07:54.122 --> 00:07:58.291 Social Security beneficiaries received confirmation of the 2026 00:07:58.291 --> 00:08:02.101 Cost-of-Living Adjustment (COLA) figure this reporting period. 00:08:02.752 --> 00:08:05.721 The COLA for 2026 will be 2.8 00:08:05.721 --> 00:08:09.992 percent, applying to nearly 71 million Social Security beneficiaries 00:08:10.201 --> 00:08:12.571 and beginning in January 2026. 00:08:13.182 --> 00:08:14.701 This follows the 2.5 00:08:14.701 --> 00:08:17.291 percent COLA received in 2025. 00:08:17.953 --> 00:08:18.724 The 2.8 00:08:18.724 --> 00:08:22.554 percent adjustment is calculated based on the increase in the Consumer 00:08:22.554 --> 00:08:27.234 Price Index for Urban Wage Earners and Clerical Workers (CPI-W). 00:08:27.923 --> 00:08:31.913 The increase underscores the ongoing need for adjustments to maintain purchasing 00:08:31.913 --> 00:08:34.364 power in the face of sustained inflation. 00:08:35.094 --> 00:08:39.423 Notably, the 2026 adjustment marks the fifth consecutive year 00:08:39.673 --> 00:08:42.253 that the COLA has been set at 2.5 00:08:42.253 --> 00:08:46.684 percent or higher, a prolonged trend of significant adjustments not observed 00:08:46.733 --> 00:08:50.403 since the period between 1988 and 1997. 00:08:51.054 --> 00:08:55.423 For fixed-income retirees, this confirms that persistent inflation remains a 00:08:55.423 --> 00:09:00.214 dominant economic factor requiring continued attention to budgetary planning. 00:09:00.978 --> 00:09:04.358 The SSA also provided a timeline for notification. 00:09:04.958 --> 00:09:09.738 COLA notices will be accessible online to most beneficiaries through the 00:09:09.738 --> 00:09:14.808 Message Center of their My Social Security account in late November 2025. 00:09:15.348 --> 00:09:19.118 Those who have not opted to receive digital communications will receive their 00:09:19.118 --> 00:09:21.327 official notice by mail in December. 00:09:21.915 --> 00:09:25.935 For Federal Employees Retirement System (FERS) retirees, the 00:09:25.935 --> 00:09:30.025 broader context remains the ongoing legislative push for COLA parity. 00:09:30.516 --> 00:09:33.785 While FERS retirees generally receive smaller COLAs than Civil 00:09:33.785 --> 00:09:38.066 Service Retirement System (CSRS) retirees, advocacy groups, such 00:09:38.066 --> 00:09:42.566 as the National Treasury Employees Union (NTEU), continue to endorse 00:09:42.566 --> 00:09:44.396 and lobby for the Equal COLA Act. 00:09:44.886 --> 00:09:49.035 This legislation aims to ensure all federal retirees share in the full 00:09:49.076 --> 00:09:50.835 annual cost-of-living adjustment. 00:09:51.455 --> 00:09:54.056 Issues That Affect Current Federal Workers 00:09:54.643 --> 00:09:57.103 Legal and Procedural Impacts of the Shutdown 00:09:57.687 --> 00:10:02.218 In a significant victory for federal employee unions, including the American 00:10:02.218 --> 00:10:06.937 Federation of Government Employees (AFGE), a preliminary injunction 00:10:06.937 --> 00:10:12.118 was secured on 3 November 2025 from a federal court in California. 00:10:12.988 --> 00:10:16.377 This injunction prevents the administration from firing federal 00:10:16.377 --> 00:10:18.318 workers due to the government shutdown. 00:10:19.008 --> 00:10:22.477 The union arguments focused on the administration's alleged violation 00:10:22.477 --> 00:10:26.777 of law by threatening to issue reductions-in-force (RIFs) or 00:10:26.777 --> 00:10:30.578 demanding employees work unpaid to carry out mass terminations. 00:10:31.201 --> 00:10:35.302 This judicial intervention provides a vital layer of job security for 00:10:35.302 --> 00:10:39.592 the thousands of furloughed employees facing immense financial hardship. 00:10:40.371 --> 00:10:44.552 While the crisis of missed paychecks continues, the court order mitigates 00:10:44.581 --> 00:10:49.522 the worst-case scenario: the involuntary separation of employees solely due 00:10:49.522 --> 00:10:51.352 to the lapse in appropriations. 00:10:52.131 --> 00:10:56.641 This action ensures that job permanence, at least for the duration of the shutdown, 00:10:56.862 --> 00:10:58.962 is protected by judicial oversight. 00:10:59.647 --> 00:11:03.197 However, the continued duration of the shutdown led to formal 00:11:03.197 --> 00:11:07.238 procedural steps that reinforce the long-term nature of the crisis. 00:11:07.958 --> 00:11:12.488 Because the initial furlough exceeded 30 days, agencies, including the 00:11:12.488 --> 00:11:16.808 Internal Revenue Service (IRS), were legally required to issue renewed 00:11:16.808 --> 00:11:19.048 furlough notices to all employees. 00:11:19.638 --> 00:11:24.847 These notices were effective midnight on 8 November 2025, informing staff 00:11:24.847 --> 00:11:28.478 of a potential furlough extension of up to an additional 30 days. 00:11:28.528 --> 00:11:32.538 This administrative marker confirms that government agencies are preparing 00:11:32.538 --> 00:11:37.177 for an indefinite, protracted closure, compelling employees who are already 00:11:37.177 --> 00:11:41.348 strained to plan for an extended period without reliable income. 00:11:42.027 --> 00:11:45.888 Legislative Debate Over Future Pay: The 2026 Showdown 00:11:46.463 --> 00:11:50.094 Even amidst the immediate funding crisis, the legislative battle over 00:11:50.094 --> 00:11:52.963 2026 federal pay is intensely active. 00:11:53.684 --> 00:11:58.564 On 28 August 2025, the President issued an Alternative Pay Plan 00:11:58.564 --> 00:12:01.434 regarding January 2026 pay adjustments. 00:12:02.454 --> 00:12:07.514 This plan calls for providing most General Schedule (GS) employees with a 1.0 00:12:07.514 --> 00:12:10.973 percent across-the-board base increase, coupled with a freeze 00:12:10.973 --> 00:12:13.913 of locality pay at 2025 levels. 00:12:14.587 --> 00:12:19.477 However, the plan directs the Office of Personnel Management (OPM) to use 00:12:19.477 --> 00:12:24.188 its Special Salary Rate authority to provide an additional approximately 2.8 00:12:24.188 --> 00:12:27.398 percent increase for certain law enforcement officials, 00:12:27.768 --> 00:12:29.667 resulting in a total 3.8 00:12:29.667 --> 00:12:31.427 percent increase for this group. 00:12:32.267 --> 00:12:35.808 This targeted increase is designed to match the increase expected 00:12:35.808 --> 00:12:37.267 for members of the military. 00:12:37.408 --> 00:12:42.197 The decision to use targeted special salary rates—authority typically reserved 00:12:42.197 --> 00:12:46.777 for addressing recruitment or retention problems in specific, high-cost, or 00:12:46.807 --> 00:12:51.928 undesirable roles—to award a differential raise breaks the long-standing 00:12:51.928 --> 00:12:56.178 tradition of pay parity between civilian federal employees and service members. 00:12:56.797 --> 00:13:00.018 This disparity is expected to heighten frustration among the 00:13:00.018 --> 00:13:04.597 wider civilian workforce, whose pay increase is capped at 1.0 00:13:04.597 --> 00:13:05.147 percent. 00:13:05.799 --> 00:13:11.020 In opposition to the President’s plan, federal employee unions, including AFGE, 00:13:11.410 --> 00:13:16.530 are endorsing legislation that would provide all federal employees with a 4.3 00:13:16.530 --> 00:13:18.999 percent pay adjustment for 2026. 00:13:19.900 --> 00:13:24.089 Unions argue that federal salaries remain, on average, 27 percent below 00:13:24.089 --> 00:13:27.739 those paid for similar jobs outside the government, contributing to 00:13:27.739 --> 00:13:32.009 persistent challenges in recruitment, retention, and chronic understaffing. 00:13:32.795 --> 00:13:37.886 Countering both the President's proposal and the union-backed legislation is H.R. 00:13:37.926 --> 00:13:40.475 200, the Federal Freeze Act. 00:13:41.085 --> 00:13:45.476 This bill, introduced in the 119th Congress, seeks to completely bar 00:13:45.476 --> 00:13:49.936 pay raises for federal employees for one year and requires mandatory 00:13:49.936 --> 00:13:53.575 reductions in the number of employees at each federal agency. 00:13:54.235 --> 00:13:55.895 While legislative action on H.R. 00:13:55.895 --> 00:13:59.866 200 during this reporting window is not specified, its existence as a 00:13:59.866 --> 00:14:03.835 pending bill represents a tangible threat to the workforce, proposing 00:14:03.835 --> 00:14:08.605 a simultaneous pay freeze and job reduction mandate across all agencies. 00:14:09.343 --> 00:14:13.143 Another major legislative proposal affecting the future structure of 00:14:13.143 --> 00:14:15.144 current federal employment is H.R. 00:14:15.144 --> 00:14:20.854 201, the "Federal Employee Performance and Accountability Act of 2025". 00:14:21.354 --> 00:14:25.404 This bill proposes a fundamental shift away from the traditional General 00:14:25.404 --> 00:14:31.074 Schedule (GS) system by establishing a five-year pilot program that makes 00:14:31.074 --> 00:14:35.873 pay adjustments contingent solely on performance for participating employees. 00:14:36.449 --> 00:14:40.360 The pilot program would apply to employees classified at or above the 00:14:40.360 --> 00:14:45.350 GS-11 level holding positions with clearly measurable performance criteria, 00:14:45.800 --> 00:14:50.970 with agencies selecting between 1 and 10 percent of eligible staff to participate. 00:14:51.989 --> 00:14:53.770 The most critical element of H.R. 00:14:53.770 --> 00:14:58.290 201 is the pay structure and its relationship to existing law. 00:14:58.430 --> 00:15:01.649 Participating employees are made ineligible for the annual 00:15:01.649 --> 00:15:05.180 or locality-based pay increases authorized under current law 00:15:05.489 --> 00:15:07.260 during the duration of the pilot. 00:15:08.079 --> 00:15:11.669 This forces participants to rely exclusively on their performance 00:15:11.669 --> 00:15:14.050 rating for any salary growth. 00:15:14.746 --> 00:15:17.745 The mandatory adjustments under the proposed performance 00:15:17.745 --> 00:15:19.866 system are highly stratified: 00:15:20.779 --> 00:15:24.620 Employees must receive a pay increase of up to 10 percent. 00:15:25.403 --> 00:15:28.764 Employees may not receive a pay increase (0% adjustment). 00:15:29.339 --> 00:15:33.490 Employees must receive a mandatory pay reduction of 10 percent. 00:15:34.125 --> 00:15:38.186 This structure introduces significant financial risk into the federal workforce. 00:15:38.646 --> 00:15:43.396 Under current GS standards, an employee who "meets expectations" still receives 00:15:43.396 --> 00:15:46.255 annual general and locality pay increases. 00:15:46.736 --> 00:15:47.385 Under H.R. 00:15:47.385 --> 00:15:51.675 201, that employee would receive a zero percent raise for acceptable 00:15:51.675 --> 00:15:55.175 performance, effectively falling behind the pace of inflation and 00:15:55.175 --> 00:15:56.956 their non-participating peers. 00:15:58.036 --> 00:16:03.425 Furthermore, the mandatory 10 percent pay reduction for a rating below expectations 00:16:03.745 --> 00:16:08.105 is highly punitive, institutionalizing a severe financial penalty. 00:16:08.825 --> 00:16:13.546 By removing the safety net of standard annual pay increases and pairing zero pay 00:16:13.546 --> 00:16:18.366 growth for meeting expectations with high potential penalties, the bill creates a 00:16:18.366 --> 00:16:23.285 compensation system that may exacerbate existing retention issues for reliable, 00:16:23.285 --> 00:16:25.735 skilled mid-to-high level employees. 00:16:25.895 --> 00:16:30.165 The program requires mandatory annual reporting on cost savings 00:16:30.165 --> 00:16:34.325 and productivity to the Office of Management and Budget, followed by a 00:16:34.325 --> 00:16:39.216 joint final outcome report by OMB and the Government Accountability Office. 00:16:39.819 --> 00:16:42.980 And that’s a wrap on this week’s Federal Workforce Roundup. 00:16:43.609 --> 00:16:47.779 The landscape for federal employees and retirees is constantly shifting, 00:16:48.009 --> 00:16:52.319 with major decisions being made about everything from pay and job security 00:16:52.569 --> 00:16:56.249 to retirement benefits and the very structure of the civil service. 00:16:57.070 --> 00:16:59.460 Staying informed is your best tool. 00:16:59.759 --> 00:17:04.320 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:17:04.967 --> 00:17:06.067 Thanks for tuning in. 00:17:06.138 --> 00:17:08.838 We’ll be back next week to track the latest developments 00:17:09.118 --> 00:17:10.547 and what they mean for you. 00:17:10.978 --> 00:17:13.837 Until then, stay engaged and be well.