WEBVTT NOTE This file was generated by Descript 00:00:00.039 --> 00:00:06.449 Lawrence: Welcome to The FED Weekly for 14 - 20 September 2025, your essential 00:00:06.449 --> 00:00:10.039 weekly briefing on the policies and proposals shaping your career, 00:00:10.430 --> 00:00:12.569 your benefits, and your retirement. 00:00:13.310 --> 00:00:17.600 Whether you’re a current federal employee navigating changes in the civil service, 00:00:17.889 --> 00:00:23.309 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:23.309 --> 00:00:27.579 is your source for the latest news from Capitol Hill and the executive branch. 00:00:28.174 --> 00:00:32.703 Each week, we cut through the noise to bring you the critical updates on budget 00:00:32.703 --> 00:00:38.184 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:38.184 --> 00:00:40.294 directly impact the federal community. 00:00:40.903 --> 00:00:44.014 Let's get you up to speed on what happened this past week. 00:00:44.743 --> 00:00:47.924 Issues That Affect Current and Retired Federal Workers 00:00:48.518 --> 00:00:51.977 The Looming Government Shutdown: A Standoff in Washington 00:00:52.607 --> 00:00:56.187 The most significant news story for the entire federal workforce 00:00:56.187 --> 00:01:00.037 this week is the intensifying threat of a government shutdown. 00:01:00.708 --> 00:01:04.977 As the September 30, 2025, deadline for agency funding rapidly 00:01:04.977 --> 00:01:09.397 approaches, Congress remains far from reaching a final agreement on 00:01:09.397 --> 00:01:11.588 most full-year appropriations bills. 00:01:12.238 --> 00:01:17.037 This has created a widespread sense of anxiety among federal employees across 00:01:17.037 --> 00:01:20.887 the nation, who are now adjusting their personal and professional 00:01:20.887 --> 00:01:25.527 lives to prepare for the potential disruption to their public service 00:01:25.998 --> 00:01:27.818 and the threat to their paychecks. 00:01:28.473 --> 00:01:32.134 Instead of a long-term solution, Republicans and Democrats are locked 00:01:32.134 --> 00:01:35.943 in a standoff over competing versions of a short-term funding bill, 00:01:36.253 --> 00:01:38.204 known as a continuing resolution. 00:01:38.563 --> 00:01:44.204 On September 16, 2025, House Republicans put forward a seven-week stopgap 00:01:44.204 --> 00:01:49.593 measure that would keep federal agencies open through November 21, 2025. 00:01:50.064 --> 00:01:55.114 This bill was described as "clean" and free of "poison pills" but was notably 00:01:55.114 --> 00:01:59.153 drafted and introduced without negotiation with their Democratic colleagues. 00:01:59.653 --> 00:02:03.964 In contrast, the Trump administration is calling for a longer, four-month 00:02:04.034 --> 00:02:10.184 continuing resolution that would extend funding through January 31, 2026. 00:02:10.949 --> 00:02:14.529 The fundamental disagreement here is not just about the length of the 00:02:14.529 --> 00:02:17.320 funding bill but about strategic timing. 00:02:18.159 --> 00:02:22.640 The recurring cycle of brinkmanship in Washington reveals a deep partisan 00:02:22.640 --> 00:02:26.819 divide where legislative efforts are often a high-stakes gamble. 00:02:27.430 --> 00:02:31.749 The Republican proposal for a shorter, seven-week measure could be a tactic 00:02:31.749 --> 00:02:35.510 to maintain leverage and force a quick resolution before the end of 00:02:35.510 --> 00:02:40.030 the year, while the administration’s and Democrats’ call for a longer 00:02:40.030 --> 00:02:45.000 resolution may be a strategy to push the deadline past the new year and avoid 00:02:45.000 --> 00:02:48.870 negotiations in the pressure-cooker environment of the late fall. 00:02:49.410 --> 00:02:53.149 This constant uncertainty erodes the stability of the federal workforce, 00:02:53.469 --> 00:02:57.660 creating a climate of recurring anxiety that can have a long-term 00:02:57.660 --> 00:03:00.410 psychological toll on federal employees. 00:03:01.105 --> 00:03:04.996 While a government shutdown directly impacts the pay and duties of current 00:03:04.996 --> 00:03:09.475 employees, its effects can also ripple into the retiree community. 00:03:10.355 --> 00:03:14.826 Although retirement annuity payments are generally protected, a prolonged 00:03:14.826 --> 00:03:19.035 shutdown could delay administrative functions at agencies like the Office of 00:03:19.035 --> 00:03:23.866 Personnel Management (OPM), potentially impacting the processing of new 00:03:23.866 --> 00:03:28.875 retirement applications or delaying service requests for current annuitants. 00:03:29.514 --> 00:03:32.344 A Proposed 2026 Pay Raise with a Catch 00:03:32.931 --> 00:03:36.181 In a development that will impact the financial well-being of both 00:03:36.181 --> 00:03:41.062 current employees and future retirees, President Trump issued an alternative 00:03:41.062 --> 00:03:45.461 pay plan for 2026 on August 31, 2025. 00:03:46.072 --> 00:03:50.541 This proposal would give the vast majority of federal employees a 1% pay 00:03:50.541 --> 00:03:53.072 increase, with locality pay frozen. 00:03:53.735 --> 00:03:55.795 However, the plan is not uniform. 00:03:56.166 --> 00:03:59.306 A significant and targeted exception has been made for 00:03:59.306 --> 00:04:04.116 certain federal law enforcement officers, who could receive a 3.8% 00:04:04.116 --> 00:04:08.305 base pay increase to align with expected military raises. 00:04:08.725 --> 00:04:11.876 The Office of Personnel Management has been tasked with determining 00:04:11.876 --> 00:04:15.275 which specific categories of federal law enforcement employees 00:04:15.515 --> 00:04:17.575 will receive this larger increase. 00:04:17.636 --> 00:04:22.005 This proposal arrives at a time when several law enforcement agencies are 00:04:22.005 --> 00:04:26.236 planning to surge hiring, particularly for immigration enforcement. 00:04:26.862 --> 00:04:31.661 This segmented pay plan reveals a strategic prioritization of specific 00:04:31.701 --> 00:04:35.452 roles within the federal government, which could create a potential for 00:04:35.452 --> 00:04:37.652 internal division and morale issues. 00:04:38.372 --> 00:04:41.641 The vast majority of the workforce would receive a significantly 00:04:41.641 --> 00:04:45.082 smaller pay increase than a select group of their colleagues. 00:04:45.742 --> 00:04:49.531 For current employees, this directly impacts their take-home pay. 00:04:50.172 --> 00:04:54.512 For retired federal workers, this issue has a lasting effect because 00:04:54.512 --> 00:04:58.451 retirement annuities for both the Federal Employees Retirement System 00:04:58.512 --> 00:05:04.192 (FERS) and the Civil Service Retirement System (CSRS) are calculated based on 00:05:04.192 --> 00:05:06.922 an employee’s "high-3" average salary. 00:05:07.381 --> 00:05:12.282 A smaller-than-expected pay increase in 2026 directly suppresses this average, 00:05:12.652 --> 00:05:16.552 leading to a smaller annuity for those who retire in the years to come. 00:05:17.171 --> 00:05:20.731 OPM’s Annual Combined Federal Campaign and a Hint of Its End 00:05:21.310 --> 00:05:25.399 The Office of Personnel Management (OPM) has officially launched its 00:05:25.399 --> 00:05:30.400 annual Combined Federal Campaign (CFC), which is scheduled to run from 00:05:30.400 --> 00:05:33.789 October 1 through December 31, 2025. 00:05:35.119 --> 00:05:38.780 The CFC is a charitable giving program that has been a long-standing 00:05:38.780 --> 00:05:42.130 tradition within the federal government for more than six decades. 00:05:42.751 --> 00:05:48.081 However, a key detail emerged on September 16, 2025, when a report in 00:05:48.081 --> 00:05:52.571 FEDweek noted that OPM hinted that this might be the final year the 00:05:52.571 --> 00:05:54.732 government conducts the charity drive. 00:05:55.722 --> 00:05:59.752 The potential end of this program signifies a broader trend of evaluating 00:05:59.752 --> 00:06:04.002 and potentially dismantling long-standing federal programs and traditions. 00:06:04.802 --> 00:06:08.812 For a workforce and retiree community that values a sense of stability 00:06:08.851 --> 00:06:13.041 and institutional legacy, this hint of a change represents a subtle 00:06:13.171 --> 00:06:17.121 but significant signal of a new approach to government operations. 00:06:17.601 --> 00:06:22.081 It can be seen as part of a larger, ongoing effort to reshape the culture and 00:06:22.081 --> 00:06:24.702 function of the federal government itself. 00:06:25.299 --> 00:06:27.849 Issues That Affect Retired Federal Workers 00:06:28.439 --> 00:06:31.360 Thrift Savings Plan Performance: An August Rebound 00:06:31.959 --> 00:06:35.409 For those who rely on the Thrift Savings Plan (TSP) for their 00:06:35.409 --> 00:06:40.589 retirement income, there is positive news to report from August 2025. 00:06:41.530 --> 00:06:46.320 All TSP funds finished the month in the black, with international investments (the 00:06:46.320 --> 00:06:50.850 I Fund) in particular rebounding after lagging behind other portfolios in July. 00:06:51.309 --> 00:06:55.270 This follows a mixed performance in July, when domestic investments in 00:06:55.270 --> 00:06:59.709 the C and S Funds posted gains while the international (I) and fixed income 00:06:59.750 --> 00:07:01.959 (F) funds ended the month in the red. 00:07:02.559 --> 00:07:06.180 This recent mixed performance underscores the critical importance of 00:07:06.180 --> 00:07:10.629 a diversified investment strategy for retirees and those nearing retirement. 00:07:11.129 --> 00:07:14.870 The volatility of international markets, as seen in the I Fund's 00:07:14.870 --> 00:07:19.229 up-and-down performance from July to August, highlights a major risk for 00:07:19.229 --> 00:07:23.669 retirees whose ability to recover from market downturns is limited. 00:07:23.770 --> 00:07:27.489 This latest data shows that retirement planning isn't a one-time 00:07:27.489 --> 00:07:32.040 event but a continuous process of monitoring and adjustment, especially 00:07:32.040 --> 00:07:33.819 in a dynamic economic climate. 00:07:34.839 --> 00:07:37.639 These trends highlight the value of looking beyond U.S. 00:07:37.639 --> 00:07:42.790 stocks, as international markets may offer better risk-adjusted returns and a 00:07:42.790 --> 00:07:47.470 way to add stability to a portfolio that has become highly concentrated in U.S. 00:07:47.470 --> 00:07:48.670 technology companies. 00:07:49.283 --> 00:07:52.563 Maximizing Your Retirement: A Guide to Timing Your Exit 00:07:53.143 --> 00:07:56.034 A crucial resource for those planning their retirement in 00:07:56.034 --> 00:07:58.323 2026 was published this week. 00:07:58.864 --> 00:08:03.503 Tammy Flanagan, an expert on federal benefits, released her annual guide 00:08:03.503 --> 00:08:08.803 titled "Step into retirement on the right day" on September 18, 2025. 00:08:09.403 --> 00:08:13.923 This guide provides vital information to help employees maximize their retirement 00:08:13.923 --> 00:08:19.243 benefits and navigate the complex process of separation from federal service. 00:08:19.886 --> 00:08:23.796 One of the most important pieces of advice is to time your retirement 00:08:23.796 --> 00:08:28.006 date to maximize the lump-sum payment for your accrued annual leave. 00:08:29.016 --> 00:08:35.306 For most federal employees, the 2026 leave year begins on January 11, 2026, 00:08:35.695 --> 00:08:38.836 and concludes on January 9, 2027. 00:08:39.415 --> 00:08:43.055 By retiring near the end of the leave year, an employee can ensure 00:08:43.055 --> 00:08:46.786 they receive payment for the maximum amount of leave carried over from 00:08:46.786 --> 00:08:51.165 the previous year, in addition to the leave accrued in the current year. 00:08:51.778 --> 00:08:56.938 The guide also emphasizes the importance of the application process itself. 00:08:57.418 --> 00:09:01.057 It is recommended that employees notify their Human Resources specialist 00:09:01.358 --> 00:09:05.207 at least 30 to 90 days in advance of their planned work stoppage. 00:09:05.818 --> 00:09:09.617 This provides enough time to complete the Online Retirement Application 00:09:09.648 --> 00:09:13.797 (ORA), which must be finalized by the employee, the Human Resources 00:09:13.797 --> 00:09:18.697 office, and the payroll provider before it is sent to OPM for processing. 00:09:18.908 --> 00:09:23.078 The guide warns that retirement processing can take several months if 00:09:23.078 --> 00:09:27.478 the employee has certain complicating factors, such as court orders, workers' 00:09:27.478 --> 00:09:32.338 compensation claims, or a history of part-time or intermittent federal service. 00:09:32.968 --> 00:09:36.748 The fact that an entire guide is dedicated to this topic and mentions 00:09:36.748 --> 00:09:41.137 specific dates and deadlines reveals the bureaucratic intricacies of 00:09:41.137 --> 00:09:42.897 the federal retirement process. 00:09:43.658 --> 00:09:47.498 A single mistake, such as retiring on the wrong day, could cost an 00:09:47.498 --> 00:09:51.647 employee a significant amount of money in lost leave and benefits. 00:09:52.267 --> 00:09:54.807 Issues That Affect Current Federal Workers 00:09:55.394 --> 00:09:58.254 Efforts to Restore Collective Bargaining Rights 00:09:58.931 --> 00:10:02.042 For current federal workers, a new legislative effort is underway to 00:10:02.042 --> 00:10:03.812 safeguard their job protections. 00:10:04.451 --> 00:10:09.871 On September 18, 2025, Virginia Senator Mark Warner introduced the "Protect 00:10:09.871 --> 00:10:14.341 America's Workforce Act," a bill backed by the American Federation of State, 00:10:14.341 --> 00:10:17.262 County and Municipal Employees (AFSCME). 00:10:18.221 --> 00:10:22.961 This legislation is a direct response to a fundamental challenge to labor 00:10:22.961 --> 00:10:24.711 rights within the federal government. 00:10:24.861 --> 00:10:28.951 The bill aims to block President Donald Trump's March executive 00:10:28.951 --> 00:10:32.741 order, which stripped collective bargaining rights from hundreds 00:10:32.741 --> 00:10:34.781 of thousands of federal employees. 00:10:35.431 --> 00:10:39.881 According to AFSCME President Lee Saunders, the bill would allow federal 00:10:39.881 --> 00:10:45.392 workers to regain their voice on the job and collectively bargain for safe working 00:10:45.392 --> 00:10:48.022 conditions and strong public services. 00:10:48.461 --> 00:10:52.121 This bill has bipartisan support and is a companion measure to a 00:10:52.121 --> 00:10:55.672 bill introduced in the House by Maine Representative Jared Golden. 00:10:55.711 --> 00:11:00.131 The legislative action is not just a partisan issue but a broader debate 00:11:00.291 --> 00:11:04.371 about the nature of civil service and the rights of the federal workforce. 00:11:05.082 --> 00:11:08.892 The use of strong language by the bill's sponsors, who describe 00:11:08.892 --> 00:11:12.901 the administration's actions as "terrorizing the federal workforce," 00:11:13.222 --> 00:11:17.412 suggests a highly contentious environment where job protections 00:11:17.412 --> 00:11:19.382 are actively being fought over. 00:11:20.019 --> 00:11:22.739 The Legal Battle Over Federal Job Protections 00:11:23.362 --> 00:11:27.012 The debate over federal employee rights is not limited to Congress. 00:11:27.431 --> 00:11:30.882 A profound legal challenge is currently being waged by the Justice 00:11:30.882 --> 00:11:35.072 Department, which is arguing before the Merit Systems Protection Board 00:11:35.442 --> 00:11:40.412 (MSPB) that the President has the constitutional authority to fire federal 00:11:40.412 --> 00:11:43.162 employees "at will" and without cause. 00:11:43.782 --> 00:11:47.902 This legal argument directly challenges decades of precedent and current 00:11:47.902 --> 00:11:52.171 federal law, which require agencies to provide notice, cause, and an 00:11:52.171 --> 00:11:56.362 opportunity to rebut allegations before a firing can take place. 00:11:57.402 --> 00:12:01.772 The administration’s aggressive dismissal of career staff, including the top pardon 00:12:01.772 --> 00:12:07.561 attorney in March 2025, demonstrates that this is not a theoretical argument but an 00:12:07.631 --> 00:12:10.232 active strategy to reshape the workforce. 00:12:10.839 --> 00:12:15.169 If the administration were to succeed in this legal effort, it could effectively 00:12:15.169 --> 00:12:19.629 dismantle the protections that have insulated career civil servants from 00:12:19.629 --> 00:12:21.869 political retribution for decades. 00:12:22.499 --> 00:12:26.400 This would fundamentally alter the federal workforce, potentially 00:12:26.400 --> 00:12:29.890 replacing a merit-based system with one where employment is 00:12:29.890 --> 00:12:32.060 contingent on political loyalty. 00:12:32.150 --> 00:12:37.060 The ongoing legal battles on multiple fronts highlight a multifaceted campaign 00:12:37.060 --> 00:12:40.699 by the administration to redefine the nature of federal employment. 00:12:42.046 --> 00:12:45.825 VERA and Deferred Resignation: A Looming Deadline 00:12:46.096 --> 00:12:50.036 For a select group of current federal employees, a time-sensitive 00:12:50.036 --> 00:12:52.016 deadline is rapidly approaching. 00:12:52.826 --> 00:12:57.546 The deadline for the deferred resignation offer and the Voluntary Early Retirement 00:12:57.546 --> 00:13:01.546 Authority (VERA) is September 30, 2025. 00:13:02.076 --> 00:13:05.806 This program is available to employees who are eligible for the offer and 00:13:05.806 --> 00:13:11.086 are at least age 50 with 20 years of creditable federal service, or any age 00:13:11.086 --> 00:13:13.636 with 25 years of creditable service. 00:13:14.286 --> 00:13:17.566 The program offers a unique window of opportunity for 00:13:17.566 --> 00:13:19.196 those considering retirement. 00:13:19.846 --> 00:13:23.276 A critical provision allows eligible employees to accept a 00:13:23.276 --> 00:13:27.666 deferred resignation and still elect for early or normal retirement 00:13:27.666 --> 00:13:29.736 before the September 30 deadline. 00:13:30.406 --> 00:13:35.016 If a retirement election is made, it will override the deferred resignation. 00:13:35.486 --> 00:13:38.846 During the deferred resignation period, employees will continue 00:13:38.846 --> 00:13:40.756 to accrue retirement benefits. 00:13:40.806 --> 00:13:45.406 For those who are scheduled to retire after September 30 but before December 00:13:45.406 --> 00:13:50.806 31, 2025, they are still eligible for the program, and their deferred 00:13:50.806 --> 00:13:55.056 resignation date can be extended to match their approved retirement date. 00:13:55.846 --> 00:13:59.866 This news serves as a direct call to action for any federal employee 00:13:59.866 --> 00:14:04.636 considering retirement, underscoring the need to act swiftly and navigate 00:14:04.636 --> 00:14:06.876 the bureaucratic process with precision. 00:14:07.886 --> 00:14:12.416 A separate retirement application must still be submitted, and it is important 00:14:12.416 --> 00:14:17.086 to note that an employing agency can deny a request to rescind a resignation, 00:14:17.356 --> 00:14:21.846 as the program's objective is to quickly consolidate or reassign roles. 00:14:22.438 --> 00:14:26.218 And that’s a wrap on this week’s Federal Workforce Roundup. 00:14:27.368 --> 00:14:31.518 The landscape for federal employees and retirees is constantly shifting, 00:14:31.768 --> 00:14:35.948 with major decisions being made about everything from pay and job security 00:14:36.178 --> 00:14:39.878 to retirement benefits and the very structure of the civil service. 00:14:40.638 --> 00:14:42.578 Staying informed is your best tool. 00:14:42.938 --> 00:14:47.128 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:14:47.794 --> 00:14:48.874 Thanks for tuning in. 00:14:49.154 --> 00:14:52.304 We’ll be back next week to track the latest developments 00:14:52.514 --> 00:14:53.824 and what they mean for you. 00:14:54.274 --> 00:14:56.564 Until then, stay engaged and be well.