WEBVTT NOTE This file was generated by Descript 00:00:00.029 --> 00:00:06.550 Lawrence: Welcome to The FED Weekly for 26 October to 1 November 2025, your 00:00:06.550 --> 00:00:10.609 essential weekly briefing on the policies and proposals shaping your career, 00:00:11.090 --> 00:00:13.229 your benefits, and your retirement. 00:00:13.989 --> 00:00:17.860 Whether you’re a current federal employee navigating changes in the civil service, 00:00:18.190 --> 00:00:23.239 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:23.239 --> 00:00:27.690 is your source for the latest news from Capitol Hill and the executive branch. 00:00:28.283 --> 00:00:32.144 Each week, we cut through the noise to bring you the critical updates on budget 00:00:32.144 --> 00:00:37.143 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:37.143 --> 00:00:39.323 directly impact the federal community. 00:00:39.874 --> 00:00:42.863 Let's get you up to speed on what happened this past week. 00:00:43.485 --> 00:00:46.896 Issues That Affect Current and Retired Federal Workers 00:00:47.475 --> 00:00:51.466 The Legislative Impasse and the Looming Threat to Retroactive Pay 00:00:52.069 --> 00:00:56.230 The political standoff that triggered the shutdown on October 1, 2025, 00:00:56.590 --> 00:01:00.550 remains fully entrenched, fueled by partisan disagreement over health care 00:01:00.550 --> 00:01:03.029 policy and overall funding levels. 00:01:03.739 --> 00:01:07.079 Congress continued to fail in resolving the appropriation 00:01:07.079 --> 00:01:08.410 lapse during this period. 00:01:08.849 --> 00:01:14.369 The Senate, requiring 60 votes to advance most legislation, voted 13 00:01:14.369 --> 00:01:18.759 times on a House-passed resolution designed to fund the government until 00:01:18.759 --> 00:01:23.150 November 21, but fell short of the necessary threshold, leaving roughly 00:01:23.150 --> 00:01:29.299 730,000 federal employees classified as "excepted" working without pay. 00:01:29.923 --> 00:01:34.043 Amidst this paralysis, legislative proposals emerged to alleviate 00:01:34.043 --> 00:01:35.864 the burden on working employees. 00:01:36.394 --> 00:01:38.073 The Shutdown Fairness Act (S. 00:01:38.073 --> 00:01:40.283 3012) was actively debated. 00:01:40.734 --> 00:01:44.764 This bill seeks to provide immediate appropriations to ensure that federal 00:01:44.764 --> 00:01:49.533 agencies can pay their excepted employees (and certain supporting contractors) 00:01:49.814 --> 00:01:52.004 during the ongoing lapse in funding. 00:01:52.554 --> 00:01:54.394 The introduction and promotion of S. 00:01:54.394 --> 00:01:58.554 3012 highlights a fundamental, practical difference in employee 00:01:58.554 --> 00:02:00.543 compensation during a shutdown. 00:02:00.994 --> 00:02:06.293 While the Government Employee Fair Treatment Act (GEFTA) of 2019 historically 00:02:06.293 --> 00:02:11.034 ensures that both furloughed and excepted employees receive retroactive 00:02:11.034 --> 00:02:13.604 pay after a shutdown ends , S. 00:02:13.604 --> 00:02:17.424 3012 specifically targets immediate compensation for those 00:02:17.424 --> 00:02:18.933 required to report to work. 00:02:19.014 --> 00:02:22.604 The continued necessity of introducing such immediate pay legislation 00:02:22.953 --> 00:02:27.174 underscores the lack of reliable funding mechanisms for core governmental 00:02:27.174 --> 00:02:29.573 functions during extended lapses. 00:02:30.506 --> 00:02:34.586 A major controversy that introduced profound financial uncertainty for 00:02:34.586 --> 00:02:38.175 all furloughed workers was revealed during this reporting period. 00:02:38.985 --> 00:02:44.126 An October 2025 draft memo, penned by the Office of Management and Budget’s 00:02:44.355 --> 00:02:49.146 (OMB) general counsel, Mark Paoletta, and addressed to Director Russell Vought, 00:02:49.595 --> 00:02:54.345 questioned the automatic guarantee of retroactive pay for furloughed employees. 00:02:54.386 --> 00:02:59.365 The OMB position argued that the GEFTA did not automatically ensure post-shutdown 00:02:59.365 --> 00:03:03.836 pay for furloughed employees, asserting instead that Congress must include 00:03:03.875 --> 00:03:09.755 explicit, express language appropriating funds for back pay within any legislation 00:03:09.915 --> 00:03:11.606 used to end the government lapse. 00:03:12.055 --> 00:03:15.555 Although the administration had not officially adopted this position 00:03:15.766 --> 00:03:19.345 to withhold retroactive pay, the very existence of this legal 00:03:19.345 --> 00:03:22.976 interpretation signals a potential shift in the executive branch’s 00:03:22.976 --> 00:03:25.206 strategy toward the civil service. 00:03:26.025 --> 00:03:30.246 Historically, GEFTA has been understood to guarantee pay , but this new 00:03:30.246 --> 00:03:34.585 legal opinion introduces a risk that the executive branch could use the 00:03:34.585 --> 00:03:39.506 withholding of guaranteed compensation as leverage in budget negotiations, 00:03:39.886 --> 00:03:44.456 dismantling a key, established civil service protection by demanding fresh 00:03:44.456 --> 00:03:46.816 appropriations for standard actions. 00:03:47.462 --> 00:03:50.721 Judicial Intervention Secures Essential Food Assistance 00:03:51.380 --> 00:03:55.859 The severity of the shutdown escalated for millions of Americans, including 00:03:55.859 --> 00:04:00.309 vulnerable federal employees and retirees, when funds for the Supplemental 00:04:00.309 --> 00:04:05.519 Nutrition Assistance Program (SNAP) were set to expire on November 1, 2025. 00:04:06.319 --> 00:04:10.599 The administration had reversed its prior stance, claiming it was prohibited from 00:04:10.599 --> 00:04:16.169 utilizing a $5 billion contingency fund specifically allocated by Congress to keep 00:04:16.169 --> 00:04:18.450 benefits flowing during funding lapses. 00:04:20.102 --> 00:04:22.861 This decision prompted immediate legal action. 00:04:23.752 --> 00:04:28.751 On October 28, 2025, New York Attorney General Letitia James and 00:04:28.751 --> 00:04:32.841 a bipartisan coalition of 26 state leaders, including the District of 00:04:32.841 --> 00:04:37.381 Columbia, filed a lawsuit against the Department of Agriculture (USDA). 00:04:38.211 --> 00:04:42.742 The coalition argued that the refusal to issue November SNAP payments to more 00:04:42.742 --> 00:04:47.412 than 40 million Americans—a population that includes countless families relying 00:04:47.412 --> 00:04:52.061 on this lifeline—was unlawful, as the USDA was legally required to continue 00:04:52.061 --> 00:04:55.022 benefits using existing contingency funds. 00:04:55.597 --> 00:05:00.848 The litigation came to a head on Friday, October 31, 2025, just one day 00:05:00.848 --> 00:05:02.747 before the critical payment deadline. 00:05:03.227 --> 00:05:07.347 Two federal judges intervened to block the imminent lapse of benefits. 00:05:07.977 --> 00:05:08.357 U.S. 00:05:08.357 --> 00:05:11.768 District Judge Indira Talwani in Massachusetts rejected the 00:05:11.768 --> 00:05:14.418 administration's argument that the contingency funds could 00:05:14.418 --> 00:05:17.988 not be used, ruling that the government is legally required to 00:05:17.988 --> 00:05:20.367 tap into the emergency resources. 00:05:20.988 --> 00:05:22.287 Simultaneously, U.S. 00:05:22.287 --> 00:05:23.928 District Judge John J. 00:05:23.928 --> 00:05:25.057 McConnell, Jr. 00:05:25.088 --> 00:05:28.818 in Rhode Island granted a temporary restraining order, specifically 00:05:28.818 --> 00:05:33.428 directing the USDA to distribute the contingency funds to ensure full SNAP 00:05:33.428 --> 00:05:38.288 payments by the following Monday, or at minimum, partial payments by Wednesday. 00:05:39.167 --> 00:05:43.518 These rulings affirmed the states’ position that the USDA was legally 00:05:43.518 --> 00:05:45.917 obligated to use the existing funds. 00:05:46.518 --> 00:05:50.387 This chain of events demonstrated the judiciary’s function as an emergency 00:05:50.387 --> 00:05:55.148 financial safeguard, mitigating the immediate humanitarian threat that 42 00:05:55.148 --> 00:05:59.618 million individuals—including families connected to the federal workforce—would 00:06:00.097 --> 00:06:06.148 have faced on November 1, 2025, due to executive interpretation of funding law. 00:06:06.993 --> 00:06:10.934 Sharp Increase in 2026 Federal Health Care Premiums 00:06:11.511 --> 00:06:15.091 The most significant financial news affecting both current employees and 00:06:15.091 --> 00:06:19.472 retirees was the announced increase in Federal Employees Health Benefits 00:06:19.852 --> 00:06:23.862 (FEHB) program premiums for 2026. 00:06:24.362 --> 00:06:27.371 While the announcement by the Office of Personnel Management (OPM) 00:06:27.562 --> 00:06:31.732 occurred earlier in October, the consequences continued to dominate 00:06:31.732 --> 00:06:33.652 financial planning during this period. 00:06:34.232 --> 00:06:38.771 The average enrollee share for FEHB will rise sharply by 12.3 00:06:38.771 --> 00:06:39.332 percent. 00:06:39.502 --> 00:06:43.242 For participants in the newly established Postal Service Health Benefits 00:06:43.242 --> 00:06:48.532 (PSHB) program, the average enrollee increase is slightly lower at 11.3 00:06:48.532 --> 00:06:49.001 percent. 00:06:49.595 --> 00:06:53.365 This substantial increase marks the continuation of a trend of escalating 00:06:53.365 --> 00:06:56.166 costs, following surges of 13.5 00:06:56.166 --> 00:06:58.776 percent in 2025, 7.7 00:06:58.776 --> 00:07:01.266 percent in 2024, and 8.7 00:07:01.266 --> 00:07:02.826 percent in 2023. 00:07:03.526 --> 00:07:08.236 OPM attributes the accelerating cost pressures to multiple factors, primarily 00:07:08.236 --> 00:07:13.816 the relatively older average age of enrollees (47 for active workers; 60 00:07:13.816 --> 00:07:17.635 when retirees are included), coupled with rising costs for prescription 00:07:17.635 --> 00:07:19.916 drugs and general medical services. 00:07:20.534 --> 00:07:24.603 This premium hike occurs just ahead of the critical planning window for the 00:07:24.603 --> 00:07:30.234 upcoming Open Season, scheduled for November 10 through December 8, 2025. 00:07:30.863 --> 00:07:36.073 For those in plans that are terminating at the end of 2025, a crucial administrative 00:07:36.073 --> 00:07:41.234 detail dictates that they must make an active election into a new FEHB plan. 00:07:41.773 --> 00:07:47.193 Failure to do so will result in default enrollment into the lowest-cost nationwide 00:07:47.193 --> 00:07:50.144 option for 2026, as determined by OPM. 00:07:50.825 --> 00:07:55.466 For the combined federal workforce (active and retired), the 12.3 00:07:55.466 --> 00:07:59.386 percent health premium increase represents a critical erosion 00:07:59.386 --> 00:08:01.046 of effective compensation. 00:08:01.766 --> 00:08:05.835 When juxtaposed against the announced 2026 pay raise for most active 00:08:05.835 --> 00:08:10.576 employees, the cost of coverage is set to far outstrip any nominal income 00:08:10.576 --> 00:08:15.396 increase, forcing households to make difficult and potentially restrictive 00:08:15.396 --> 00:08:17.486 health care choices to manage budgets. 00:08:18.143 --> 00:08:20.623 Issues That Affect Retired Federal Workers 00:08:21.305 --> 00:08:24.876 Finalized 2026 Cost-of-Living Adjustments (COLA) 00:08:25.538 --> 00:08:30.297 Despite the financial chaos of the shutdown, the finalized 2026 00:08:30.297 --> 00:08:34.908 Cost-of-Living Adjustments (COLA) for federal annuitants provided a measure 00:08:34.908 --> 00:08:37.177 of certainty regarding future income. 00:08:37.887 --> 00:08:41.238 The announcement of the COLA, typically derived from Social Security 00:08:41.238 --> 00:08:46.477 Administration data, was delayed this year due to the ongoing government shutdown. 00:08:47.338 --> 00:08:50.817 The announced figures reflected sustained inflationary pressures, 00:08:51.098 --> 00:08:55.197 marking the fifth consecutive year that the adjustment has been 2.5 00:08:55.197 --> 00:09:00.388 percent or higher for Civil Service Retirement System (CSRS) beneficiaries. 00:09:01.057 --> 00:09:04.337 The specific 2026 COLA figures are as follows: 00:09:04.941 --> 00:09:09.542 Civil Service Retirement System (CSRS) Annuitants: Will receive a 2.8 00:09:09.542 --> 00:09:10.522 percent increase. 00:09:11.159 --> 00:09:15.850 Federal Employees Retirement System (FERS) Annuitants: Will receive a 2.0 00:09:15.850 --> 00:09:16.960 percent increase. 00:09:17.687 --> 00:09:21.138 The continued disparity in the COLA rate—an 0.8 00:09:21.138 --> 00:09:26.068 percentage point difference between the CSRS and FERS adjustments—underscores 00:09:26.068 --> 00:09:29.337 the differential treatment of retirees under the two systems 00:09:29.538 --> 00:09:31.677 when inflation exceeds 2 percent. 00:09:32.318 --> 00:09:35.957 In response to this recurring gap, legislative efforts, specifically 00:09:35.957 --> 00:09:37.688 the Equal COLA Act (H.R. 00:09:37.688 --> 00:09:38.787 491 and S. 00:09:38.787 --> 00:09:43.217 624), remain strongly supported by advocacy groups like the National 00:09:43.217 --> 00:09:48.238 Treasury Employees Union (NTEU), who seek to eliminate this disparity. 00:09:49.387 --> 00:09:50.567 The higher 2.8 00:09:50.567 --> 00:09:55.328 percent adjustment for CSRS annuitants, based on the increase in the Consumer 00:09:55.328 --> 00:10:00.627 Price Index for Urban Wage Earners and Clerical Workers (CPI), confirms that 00:10:00.627 --> 00:10:05.028 inflationary pressures are currently running higher than the general 1.0 00:10:05.028 --> 00:10:09.048 percent pay increase planned for the majority of active federal workers in 00:10:09.048 --> 00:10:14.978 2026, reinforcing concerns about declining real wages for the current workforce. 00:10:15.547 --> 00:10:19.478 New Medicare Physician Fee Schedule and Health Plan Coordination 00:10:20.075 --> 00:10:24.215 For federal retirees utilizing Medicare, the Centers for Medicare & Medicaid 00:10:24.215 --> 00:10:29.255 Services (CMS) finalized the Calendar Year 2026 Medicare Physician Fee 00:10:29.255 --> 00:10:32.776 Schedule (PFS) final rule (CMS-1832-F). 00:10:33.316 --> 00:10:37.446 This rule introduces key revisions to payment accuracy and care management. 00:10:37.936 --> 00:10:41.815 A significant provision is the finalization of a modest -2.5 00:10:41.815 --> 00:10:45.876 percent efficiency adjustment applied to select services, such 00:10:45.876 --> 00:10:50.405 as surgical procedures, diagnostic imaging, and orthopedic services. 00:10:50.915 --> 00:10:55.405 CMS characterized this adjustment as a means to modernize payment accuracy 00:10:55.475 --> 00:10:59.626 and reduce unnecessary spending waste, arguing that these services 00:10:59.626 --> 00:11:03.916 are becoming more efficient over time due to technological advancements. 00:11:04.606 --> 00:11:09.106 While the agency stated the rule aims to improve primary care and chronic disease 00:11:09.106 --> 00:11:13.266 management, any reduction in the fee schedule inherently raises questions 00:11:13.266 --> 00:11:18.245 regarding potential impacts on beneficiary access or provider participation, 00:11:18.585 --> 00:11:20.256 requiring careful monitoring. 00:11:20.911 --> 00:11:24.922 Furthermore, as the Medicare Open Enrollment Period (OEP) overlaps 00:11:24.922 --> 00:11:30.442 with the FEHB Open Season, federal retirees enrolled in both FEHB and 00:11:30.442 --> 00:11:34.412 Original Medicare were reminded of a critical administrative requirement 00:11:34.412 --> 00:11:38.511 should they wish to enroll in a private Medicare Advantage (MA) plan. 00:11:39.032 --> 00:11:43.661 To transition to an MA plan, a retiree must actively suspend their FEHB 00:11:43.661 --> 00:11:47.821 enrollment during the upcoming FEHB Open Season, which is scheduled from 00:11:47.821 --> 00:11:51.052 November 10 through December 8, 2025. 00:11:51.481 --> 00:11:54.611 For those retirees eligible for premium-free Medicare Part A, 00:11:55.021 --> 00:11:59.311 the Public Employees' Medical and Hospital Care Act (PEMHCA) mandates 00:11:59.311 --> 00:12:01.592 enrollment in both Parts A and B. 00:12:01.951 --> 00:12:05.171 This continued complexity in coordinating dual benefit streams 00:12:05.491 --> 00:12:09.201 highlights the enduring challenge faced by retirees in navigating 00:12:09.201 --> 00:12:13.131 rising health costs and multiple, overlapping enrollment deadlines. 00:12:13.725 --> 00:12:16.186 Retirement System Administration Updates 00:12:16.814 --> 00:12:21.524 The Federal Retirement Thrift Investment Board (FRTIB), which manages the 00:12:21.524 --> 00:12:26.354 Thrift Savings Plan (TSP), conducted a scheduled telephonic board meeting on 00:12:26.354 --> 00:12:29.873 Tuesday, October 28, 2025, at 10:00 a.m. 00:12:29.873 --> 00:12:30.553 ET. 00:12:30.984 --> 00:12:34.743 These meetings are central to the oversight and long-term security of 00:12:34.743 --> 00:12:38.903 the retirement accounts for millions of federal workers and retirees. 00:12:39.534 --> 00:12:43.384 Additionally, the quarterly participant statements for the TSP, covering 00:12:43.384 --> 00:12:48.723 activity from July 1 through September 30, 2025, were made available 00:12:48.723 --> 00:12:50.773 online by the end of October. 00:12:51.503 --> 00:12:55.483 On the administrative front, OPM announced new efforts on October 30, 00:12:55.483 --> 00:13:01.064 2025, aimed at streamlining services for former employees through "Faster, 00:13:01.193 --> 00:13:03.753 Paperless Options for Federal Retirees". 00:13:04.604 --> 00:13:08.593 The continuity of these essential administrative functions, such as TSP 00:13:08.593 --> 00:13:13.623 management and OPM digitization efforts, provides a notable contrast to the severe 00:13:13.623 --> 00:13:18.254 operational and financial disruption experienced by the active, non-excepted 00:13:18.254 --> 00:13:20.273 federal workforce during the shutdown. 00:13:20.995 --> 00:13:23.535 Issues That Affect Current Federal Workers 00:13:24.186 --> 00:13:28.715 Judicial Preliminary Injunction Protects Against Mass Reductions in Force 00:13:29.291 --> 00:13:33.471 The most critical development for the active federal workforce during this 00:13:33.471 --> 00:13:38.222 period was the successful judicial defense against attempts to use the 00:13:38.222 --> 00:13:42.161 government shutdown as an opportunity to reduce the federal workforce. 00:13:42.852 --> 00:13:46.211 The shutdown has been marked by direction from the Office of Management 00:13:46.211 --> 00:13:51.022 and Budget (OMB) for agencies to consider issuing Reduction in Force 00:13:51.022 --> 00:13:54.711 (RIF) notices to employees in programs with lapsed discretionary funding 00:13:54.922 --> 00:13:58.292 that were deemed inconsistent with the administration's priorities. 00:13:58.881 --> 00:14:03.031 Reports indicated that over 4,000 federal workers were targeted 00:14:03.031 --> 00:14:04.772 for RIFs during the shutdown. 00:14:05.531 --> 00:14:10.031 OMB deemed that agencies were authorized to direct employees to perform the 00:14:10.031 --> 00:14:15.171 work necessary to administer RIF processes as an "excepted activity" 00:14:15.382 --> 00:14:17.441 during the lapse in appropriations. 00:14:18.055 --> 00:14:24.046 However, on Monday, October 28, 2025, a federal court intervened decisively. 00:14:24.606 --> 00:14:25.005 U.S. 00:14:25.005 --> 00:14:27.465 District Judge Susan Illston of the U.S. 00:14:27.465 --> 00:14:30.776 District Court for the Northern District of California granted a 00:14:30.776 --> 00:14:34.516 request from a coalition of labor unions for a preliminary injunction. 00:14:34.595 --> 00:14:39.815 This court order explicitly prohibits the administration from issuing new RIFs or 00:14:39.845 --> 00:14:43.616 implementing RIFs that had already been filed while the government remains shut 00:14:43.616 --> 00:14:46.225 down and the related litigation proceeds. 00:14:46.825 --> 00:14:51.705 The lawsuit leading to this landmark injunction was filed by a large coalition 00:14:51.705 --> 00:14:55.196 of unions, including the American Federation of Government Employees 00:14:55.416 --> 00:15:01.045 (AFGE), the National Treasury Employees Union (NTEU), the National Federation 00:15:01.045 --> 00:15:03.826 of Federal Employees (NFFE), and others. 00:15:04.433 --> 00:15:07.614 The preliminary injunction served as a vital protective 00:15:07.614 --> 00:15:09.543 measure for the active workforce. 00:15:10.103 --> 00:15:14.103 It directly challenged the executive branch's use of a funding lapse to 00:15:14.103 --> 00:15:18.044 execute mass terminations, thereby preserving the stability and 00:15:18.044 --> 00:15:20.404 integrity of the career civil service. 00:15:21.184 --> 00:15:25.293 Advocacy groups characterized the ruling as a significant setback to 00:15:25.293 --> 00:15:29.434 efforts targeting career public servants under the guise of the shutdown, 00:15:29.494 --> 00:15:33.563 temporarily stabilizing the employment status of thousands of federal 00:15:33.563 --> 00:15:36.004 workers facing immediate job loss. 00:15:36.560 --> 00:15:39.760 The Finalized 2026 Pay Structure and Locality Freeze 00:15:39.789 --> 00:15:43.010 While the active workforce struggled through the ongoing pay lapse, 00:15:43.210 --> 00:15:47.629 the details of their compensation for 2026 were confirmed following 00:15:47.629 --> 00:15:53.150 the Alternative Pay Plan issued by the President on August 28, 2025. 00:15:54.270 --> 00:15:58.780 This finalized structure reveals a stark divergence in planned compensation 00:15:58.780 --> 00:16:00.350 across the federal workforce: 00:16:00.929 --> 00:16:05.869 The majority of federal employees under the General Schedule (GS) and related pay 00:16:05.869 --> 00:16:08.650 systems are slated to receive a modest 1.0 00:16:08.650 --> 00:16:10.030 percent base increase. 00:16:10.530 --> 00:16:16.759 Simultaneously, OPM was directed to freeze 2026 locality rates at their 2025 levels. 00:16:17.327 --> 00:16:21.168 In contrast, the plan mandates the use of special pay authorities 00:16:21.168 --> 00:16:23.068 to provide an additional 2.8 00:16:23.068 --> 00:16:26.647 percent increase for certain law enforcement officials (LEOs), 00:16:26.897 --> 00:16:29.607 resulting in an overall raise of 3.8 00:16:29.607 --> 00:16:34.027 percent, which is designed to match the expected military pay increase. 00:16:34.538 --> 00:16:39.507 OPM will use Special Salary Rates (SSRs) to achieve this targeted increase. 00:16:39.847 --> 00:16:44.538 SSRs are intended to address significant recruitment or retention problems, and 00:16:44.568 --> 00:16:48.658 their application here is specifically linked to supporting law enforcement 00:16:48.658 --> 00:16:53.028 personnel crucial to the President’s strategy regarding border security. 00:16:53.646 --> 00:16:55.715 This pay structure, with a 1.0 00:16:55.715 --> 00:16:59.896 percent general base raise and frozen locality pay, represents a 00:16:59.896 --> 00:17:03.175 notable departure from the customary alignment of federal employee 00:17:03.175 --> 00:17:05.215 raises with military increases. 00:17:05.896 --> 00:17:10.065 When this low general increase is weighed against the high 12.3 00:17:10.065 --> 00:17:15.016 percent FEHB premium hike (discussed in Section 1) and the higher 00:17:15.016 --> 00:17:17.155 inflation rate indicated by the 2.8 00:17:17.155 --> 00:17:22.565 percent CSRS COLA (discussed in Section 2), the majority of the active federal 00:17:22.565 --> 00:17:27.976 workforce faces a significant decline in real net compensation for 2026. 00:17:28.535 --> 00:17:30.796 The highly targeted nature of the 3.8 00:17:30.796 --> 00:17:36.665 percent raise for LEOs risks exacerbating morale and retention issues across non-law 00:17:36.665 --> 00:17:38.636 enforcement sectors of the government. 00:17:39.275 --> 00:17:41.755 Continuing Pressure on Workplace Posture 00:17:42.313 --> 00:17:46.794 The focus on restricting telework and enforcing a return to the office remained 00:17:46.794 --> 00:17:51.794 a dominant policy theme, even amidst the operational disruption of the shutdown. 00:17:52.273 --> 00:17:55.733 The existing Presidential Memorandum on "Return to In-Person Work" 00:17:56.054 --> 00:18:00.484 continues to guide agency policies, requiring a substantial increase 00:18:00.484 --> 00:18:02.124 in meaningful in-person work. 00:18:02.719 --> 00:18:05.469 Although Congress did not act on the matter during this specific 00:18:05.469 --> 00:18:10.359 week, the previously House-passed SHOW Up Act of 2023 (H.R. 00:18:10.359 --> 00:18:14.230 139) continues to signal legislative intent. 00:18:14.810 --> 00:18:18.369 This bill would mandate executive agencies to revert to their pre-December 00:18:18.369 --> 00:18:24.270 31, 2019, telework policies and require OPM certification that 00:18:24.270 --> 00:18:28.690 any expanded telework positively affects agency mission and costs. 00:18:29.280 --> 00:18:32.649 Administration officials and department leaders, including those preparing 00:18:32.649 --> 00:18:36.830 to staff the Department of Government Efficiency, have explicitly articulated 00:18:36.830 --> 00:18:42.560 goals of implementing five-day, in-office requirements to meet the stated objective 00:18:42.560 --> 00:18:44.529 of trimming the federal workforce. 00:18:45.439 --> 00:18:49.220 The structural connection between mandated return-to-office policies 00:18:49.630 --> 00:18:54.400 and explicit workforce reduction goals suggests that telework restrictions 00:18:54.400 --> 00:18:59.029 are being utilized strategically, not only for real property optimization 00:18:59.029 --> 00:19:03.950 but also as an implicit mechanism to encourage attrition among employees who 00:19:03.950 --> 00:19:06.349 depend on flexible work arrangements. 00:19:07.035 --> 00:19:10.886 And that’s a wrap on this week’s Federal Workforce Roundup. 00:19:11.465 --> 00:19:15.806 The landscape for federal employees and retirees is constantly shifting, 00:19:16.176 --> 00:19:20.195 with major decisions being made about everything from pay and job security 00:19:20.195 --> 00:19:23.936 to retirement benefits and the very structure of the civil service. 00:19:24.766 --> 00:19:26.686 Staying informed is your best tool. 00:19:27.135 --> 00:19:31.475 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:19:32.395 --> 00:19:33.465 Thanks for tuning in. 00:19:33.676 --> 00:19:36.506 We’ll be back next week to track the latest developments 00:19:36.756 --> 00:19:38.035 and what they mean for you. 00:19:38.276 --> 00:19:41.256 Until then, stay engaged and be well.