WEBVTT NOTE This file was generated by Descript 00:00:00.039 --> 00:00:05.940 Lawrence: Welcome to The FED Weekly for 7 - 13 September 2025, your essential 00:00:05.940 --> 00:00:09.560 weekly briefing on the policies and proposals shaping your career, 00:00:09.859 --> 00:00:11.770 your benefits, and your retirement. 00:00:12.359 --> 00:00:16.489 Whether you’re a current federal employee navigating changes in the civil service, 00:00:16.920 --> 00:00:22.440 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:22.440 --> 00:00:27.340 is your source for the latest news from Capitol Hill and the executive branch. 00:00:28.019 --> 00:00:32.240 Each week, we cut through the noise to bring you the critical updates on budget 00:00:32.240 --> 00:00:37.540 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:37.540 --> 00:00:39.870 directly impact the federal community. 00:00:40.589 --> 00:00:43.860 Let's get you up to speed on what happened this past week. 00:00:44.575 --> 00:00:47.756 Issues That Affect Current and Retired Federal Workers 00:00:48.363 --> 00:00:51.933 Legislative Actions on Social Security and Retirement Planning 00:00:52.498 --> 00:00:56.917 This week saw a flurry of activity in Congress directly related to the 00:00:56.917 --> 00:01:01.368 Social Security program, a system that provides a critical financial 00:01:01.368 --> 00:01:05.857 foundation for millions of retired federal workers and their families. 00:01:06.328 --> 00:01:10.597 Two significant bills were introduced, each addressing different facets of 00:01:10.597 --> 00:01:12.818 the program's operation and future. 00:01:13.363 --> 00:01:18.894 On 10 September 2025, a bipartisan effort led by Representatives Lloyd 00:01:18.894 --> 00:01:24.214 Smucker of Pennsylvania and Don Beyer of Virginia resulted in the introduction 00:01:24.214 --> 00:01:26.324 of the Claiming Age Clarity Act. 00:01:26.834 --> 00:01:30.934 This legislation is designed to help older Americans make more informed 00:01:30.934 --> 00:01:35.543 financial decisions about when to begin claiming their Social Security benefits. 00:01:36.194 --> 00:01:40.223 The bill seeks to modernize the terminology used by the Social Security 00:01:40.223 --> 00:01:44.893 Administration, replacing what lawmakers have described as "bureaucratic jargon" 00:01:45.153 --> 00:01:46.824 with more straightforward language. 00:01:47.164 --> 00:01:50.974 Specifically, the bill would change "Early Eligibility Age" to "Minimum 00:01:50.974 --> 00:01:55.594 Benefit Age," "Full Retirement Age" to "Standard Benefit Age," and "Delayed 00:01:55.594 --> 00:01:58.344 Retirement Age" to "Maximum Benefit Age". 00:01:58.949 --> 00:02:02.919 The proposed changes are a direct response to the complexity many people 00:02:02.919 --> 00:02:07.730 face when navigating a financial decision that has lifetime consequences. 00:02:08.510 --> 00:02:13.239 By renaming the key claiming ages, the bill aims to more clearly communicate 00:02:13.239 --> 00:02:15.430 the financial trade-offs of each choice. 00:02:15.909 --> 00:02:20.639 For example, the new term "Minimum Benefit Age" for age 62 would 00:02:20.639 --> 00:02:24.819 highlight the fact that claiming at this point can result in a permanent 00:02:24.819 --> 00:02:27.440 benefit reduction of up to 30 percent. 00:02:27.499 --> 00:02:32.379 The change from "Full Retirement Age" to "Standard Benefit Age" provides a clear 00:02:32.379 --> 00:02:38.030 baseline, while the new "Maximum Benefit Age" for age 70 would underscore the fact 00:02:38.030 --> 00:02:42.989 that delaying until that point can result in a benefit increase of up to 24 percent. 00:02:43.879 --> 00:02:47.899 The legislation has received support from major advocacy groups, including 00:02:47.899 --> 00:02:53.089 AARP, which noted that the bill "will provide American workers with better 00:02:53.230 --> 00:02:57.750 and more understandable information" to help them make more informed choices. 00:02:58.386 --> 00:03:02.286 A second piece of legislation, the Keep Billionaires Out of Social 00:03:02.286 --> 00:03:07.626 Security Act, was introduced on 10 September 2025 by U.S. 00:03:07.626 --> 00:03:08.666 Senators Mark R. 00:03:08.666 --> 00:03:13.645 Warner and Tim Kaine of Virginia, along with 27 of their Democratic colleagues. 00:03:14.145 --> 00:03:18.225 This bill is framed as a measure to protect Social Security from what 00:03:18.225 --> 00:03:22.096 its sponsors describe as "harmful actions" by the administration. 00:03:22.545 --> 00:03:25.525 The legislation's provisions would directly address several 00:03:25.555 --> 00:03:27.725 operational and access issues. 00:03:27.766 --> 00:03:32.466 It proposes to prohibit the closure or relocation of Social Security field 00:03:32.466 --> 00:03:36.496 offices, preventing what the bill's supporters believe would be a reduction 00:03:36.496 --> 00:03:38.966 in service and a loss of employees. 00:03:39.485 --> 00:03:44.075 Furthermore, the bill would provide a $5 billion increase in funding to 00:03:44.075 --> 00:03:48.185 the Social Security Administration, aimed at improving customer service, 00:03:48.516 --> 00:03:53.815 modernizing technology, and reducing the substantial backlogs that currently exist. 00:03:53.915 --> 00:03:58.716 The bill also seeks to restore assistance for vulnerable and disabled individuals 00:03:58.926 --> 00:04:00.806 and to safeguard Americans' data. 00:04:01.434 --> 00:04:05.044 The introduction of this bill suggests a fundamental conflict 00:04:05.314 --> 00:04:08.853 over the operational future of the Social Security Administration. 00:04:09.394 --> 00:04:13.394 The bill's provisions, particularly the prohibition on office closures, 00:04:13.694 --> 00:04:18.013 signal a political counter-movement to what may be an administrative push 00:04:18.293 --> 00:04:23.033 for a more streamlined, digital-first approach to government services. 00:04:23.103 --> 00:04:26.734 This legislative effort to preserve the physical presence and human 00:04:26.734 --> 00:04:31.623 element of Social Security services underscores a widespread concern 00:04:31.863 --> 00:04:35.604 that efficiency-driven reforms could inadvertently leave vulnerable 00:04:35.604 --> 00:04:38.244 populations without essential support. 00:04:38.907 --> 00:04:40.517 The Economic and Fiscal Outlook 00:04:41.220 --> 00:04:45.449 Beyond the legislative sphere, the economic and fiscal climate is a major 00:04:45.449 --> 00:04:47.750 factor for all federal employees. 00:04:48.380 --> 00:04:52.939 On 07 September 2025, the Bureau of Labor Statistics released 00:04:52.939 --> 00:04:57.050 its August jobs report, which showed a weak economic picture. 00:04:57.390 --> 00:04:57.839 The U.S. 00:04:57.839 --> 00:05:02.560 economy added only around 22,000 jobs, marking a second consecutive 00:05:02.560 --> 00:05:03.890 weak month of job growth. 00:05:04.220 --> 00:05:06.699 The unemployment rate also rose to 4.3 00:05:06.699 --> 00:05:10.560 percent, with over 25 percent of unemployed workers having been 00:05:10.560 --> 00:05:15.710 jobless for more than six months, a level not seen since June 2016. 00:05:16.617 --> 00:05:21.167 The report's commentary suggests that these poor economic numbers are not a 00:05:21.167 --> 00:05:26.018 separate force but are directly linked to the federal government's own actions. 00:05:26.558 --> 00:05:30.787 The report specifically attributes the weak performance to "mass layoffs 00:05:30.787 --> 00:05:34.967 from the federal government" and the "reverberating impact of cancelled 00:05:34.967 --> 00:05:36.788 federal grants and contracts". 00:05:37.598 --> 00:05:40.938 This analysis indicates that the administration’s decisions 00:05:40.938 --> 00:05:44.667 regarding workforce and spending are actively contributing to 00:05:44.667 --> 00:05:46.487 the broader economic downturn. 00:05:47.018 --> 00:05:50.527 The government is not merely a passive observer of the economy; 00:05:50.878 --> 00:05:55.018 its fiscal and personnel policies are shaping it in a tangible way. 00:05:55.654 --> 00:05:59.833 This economic backdrop is particularly relevant in light of the ongoing 00:05:59.833 --> 00:06:02.243 congressional stalemate over funding. 00:06:02.774 --> 00:06:06.544 Congress has yet to approve any of the appropriations bills necessary 00:06:06.544 --> 00:06:11.153 to fund federal agencies for the fiscal year beginning on 01 October. 00:06:11.663 --> 00:06:16.053 This sets up the very real possibility of a government shutdown, which would 00:06:16.053 --> 00:06:18.924 impact both current and retired workers. 00:06:19.014 --> 00:06:22.684 While federal employee and retiree benefits from programs like 00:06:22.684 --> 00:06:26.754 Social Security are generally insulated from a shutdown, the 00:06:26.754 --> 00:06:30.313 administrative infrastructure and support systems are not. 00:06:31.023 --> 00:06:35.063 A shutdown could lead to a halt in the processing of new claims and a 00:06:35.063 --> 00:06:39.433 reduction in customer service, affecting the very access points that the 00:06:40.043 --> 00:06:44.023 Keep Billionaires Out of Social Security Act is trying to protect. 00:06:44.613 --> 00:06:47.703 The political dynamics of this situation are complex. 00:06:48.494 --> 00:06:51.694 Congressional Republicans may propose a short-term continuing 00:06:51.694 --> 00:06:56.573 resolution that would freeze federal budgets at fiscal 2024 levels. 00:06:57.153 --> 00:07:01.493 However, Senate Democrats may reject such a proposal unless it is for a 00:07:01.493 --> 00:07:06.124 limited duration and includes safeguards to ensure the administration spends 00:07:06.124 --> 00:07:08.364 the funds as stipulated by Congress. 00:07:08.413 --> 00:07:11.924 Further complicating matters is the administration's potential use 00:07:11.924 --> 00:07:16.254 of a maneuver known as a "pocket recission" to cancel funds that 00:07:16.254 --> 00:07:18.164 Congress has already approved. 00:07:18.883 --> 00:07:23.574 This would directly affect agency budgets and programs, creating a volatile 00:07:23.574 --> 00:07:28.083 and uncertain environment for federal workers and the services they provide. 00:07:28.707 --> 00:07:31.207 Issues That Affect Retired Federal Workers 00:07:31.786 --> 00:07:35.095 This week’s news for retired federal workers revolves around 00:07:35.095 --> 00:07:38.125 the two significant legislative developments in Congress. 00:07:39.005 --> 00:07:42.946 While we touched on them in the first section, it is essential to explore their 00:07:42.946 --> 00:07:48.166 specific implications for retirees, for whom these issues are not just policy 00:07:48.166 --> 00:07:53.195 matters but are fundamental to their financial security and quality of life. 00:07:53.817 --> 00:07:57.807 The Claiming Age Clarity Act is more than a simple name change; it 00:07:57.807 --> 00:08:01.817 is a critical piece of legislation aimed at protecting retirees from 00:08:01.817 --> 00:08:03.537 an information-based failure. 00:08:04.107 --> 00:08:08.117 The current terminology, which includes "Early Eligibility Age," can 00:08:08.157 --> 00:08:11.777 unintentionally encourage people to begin claiming benefits as early as 00:08:11.777 --> 00:08:16.187 possible without fully grasping the permanent financial consequences. 00:08:16.978 --> 00:08:22.007 By introducing the term "Minimum Benefit Age," the bill would make it explicitly 00:08:22.007 --> 00:08:27.578 clear that claiming at age 62 is the lowest possible benefit an individual can 00:08:27.578 --> 00:08:32.418 receive, a distinction that is crucial when that decision can result in a 00:08:32.418 --> 00:08:35.207 permanent reduction of up to 30 percent. 00:08:35.799 --> 00:08:40.439 Conversely, the change from "Delayed Retirement Age" to "Maximum Benefit Age" 00:08:40.839 --> 00:08:44.909 would serve as a powerful signal to those who have the financial ability to wait. 00:08:45.909 --> 00:08:50.820 The new name highlights the significant financial gain—up to 24 percent more than 00:08:50.820 --> 00:08:55.850 the standard benefit—that can be achieved by delaying retirement until age 70. 00:08:56.440 --> 00:09:01.309 This bill, therefore, is a proactive measure to ensure that retirees and 00:09:01.309 --> 00:09:05.969 those nearing retirement have a clear understanding of the financial stakes, 00:09:06.300 --> 00:09:10.590 helping them avoid costly, irreversible decisions that could impact their 00:09:10.590 --> 00:09:12.510 income for the rest of their lives. 00:09:13.159 --> 00:09:17.290 Similarly, the Keep Billionaires Out of Social Security Act addresses an 00:09:17.290 --> 00:09:21.480 operational challenge that directly affects the daily lives of retirees. 00:09:22.150 --> 00:09:26.230 While many financial transactions are now digital, a large segment 00:09:26.230 --> 00:09:30.640 of the retired population relies on in-person assistance for complex issues. 00:09:31.319 --> 00:09:36.020 The potential closure or relocation of Social Security field offices would 00:09:36.020 --> 00:09:40.460 create significant barriers to access for many, particularly those who are 00:09:40.460 --> 00:09:45.960 not technologically savvy, have limited internet access, or have disabilities 00:09:45.960 --> 00:09:48.379 that make remote interactions challenging. 00:09:49.009 --> 00:09:52.530 The bill’s provision to prohibit these closures is a clear statement 00:09:52.530 --> 00:09:56.489 that physical access and the human element of public service are not 00:09:56.539 --> 00:10:01.489 outdated conveniences but are essential components of the social safety net. 00:10:02.199 --> 00:10:05.960 The proposed $5 billion funding increase would also be directly 00:10:05.960 --> 00:10:10.789 felt by retirees, as it is intended to reduce backlogs and improve the 00:10:10.789 --> 00:10:15.019 overall customer service experience at the Social Security Administration. 00:10:15.559 --> 00:10:19.390 For millions of retirees, the ability to speak to a real person and 00:10:19.390 --> 00:10:23.820 receive timely assistance is not a luxury but a fundamental necessity. 00:10:24.415 --> 00:10:27.006 Issues That Affect Current Federal Workers 00:10:27.603 --> 00:10:29.394 The Overhaul of Federal Hiring 00:10:29.951 --> 00:10:30.402 The U.S. 00:10:30.402 --> 00:10:35.631 Office of Personnel Management, or OPM, is implementing a fundamental restructuring 00:10:35.631 --> 00:10:40.321 of the federal hiring process, which it describes as the "Merit Hiring Plan". 00:10:40.941 --> 00:10:44.082 The week's announcements reveal two key pillars of this initiative. 00:10:44.432 --> 00:10:50.192 On 05 September 2025, OPM announced the new "Rule of Many," which replaces the 00:10:50.192 --> 00:10:52.961 more than 150-year-old "rule of three". 00:10:53.002 --> 00:10:56.641 This new rule allows agencies to select from a broader pool 00:10:56.641 --> 00:10:59.981 of top-ranked candidates based on skills-based assessments. 00:11:00.582 --> 00:11:05.351 It replaces the previous rigid "category rating" system, giving hiring managers 00:11:05.351 --> 00:11:09.831 the flexibility to rank candidates using "cut-off scores, a set number, 00:11:09.972 --> 00:11:11.952 or a percentage of top applicants". 00:11:12.542 --> 00:11:17.242 According to OPM Director Scott Kupor, this change aims to bring in the most 00:11:17.242 --> 00:11:19.202 capable people to serve the public. 00:11:19.785 --> 00:11:23.726 This reform is not an isolated policy but is part of a larger, 00:11:23.726 --> 00:11:27.776 coordinated effort to modernize the entire talent acquisition process. 00:11:28.235 --> 00:11:32.245 This became even clearer with OPM's announcement of a two-page resume 00:11:32.245 --> 00:11:37.046 standard for federal job applications submitted through USAJOBS, which will 00:11:37.046 --> 00:11:40.485 take effect on 27 September 2025. 00:11:40.536 --> 00:11:44.335 This change is also a key highlight of the Merit Hiring Plan and is 00:11:44.335 --> 00:11:48.165 designed to streamline the review process for hiring managers by 00:11:48.165 --> 00:11:52.285 ensuring they focus on the most relevant qualifications and experience. 00:11:52.965 --> 00:11:57.605 OPM has provided a transition period and is offering updated guidance 00:11:57.805 --> 00:12:01.875 and resume-building tools to assist applicants in meeting the new standard. 00:12:02.555 --> 00:12:07.156 These two changes, when viewed together, represent a top-to-bottom 00:12:07.156 --> 00:12:10.555 re-engineering of how the federal government recruits and selects its 00:12:10.555 --> 00:12:15.785 workforce, shifting the focus toward a more skills-based and agile model. 00:12:16.394 --> 00:12:18.544 The Battle for Pay and Labor Rights 00:12:19.115 --> 00:12:23.795 The issue of federal employee pay for 2026 remains a contentious topic. 00:12:24.255 --> 00:12:28.006 On one side is President Trump’s alternative pay plan, which was 00:12:28.006 --> 00:12:33.315 issued on 28 August 2025 and calls for a one percent across-the-board 00:12:33.315 --> 00:12:35.625 pay raise for most federal employees. 00:12:36.256 --> 00:12:40.455 This plan also includes a freeze on locality pay at its current levels. 00:12:41.125 --> 00:12:45.325 A notable exception to this plan is for some law enforcement occupations, which 00:12:45.325 --> 00:12:48.045 would receive an overall raise of 3.8 00:12:48.045 --> 00:12:52.136 percent to match the increase expected for members of the military. 00:12:52.916 --> 00:12:57.125 This proposal breaks with a long-standing tradition of pay raise parity between 00:12:57.125 --> 00:12:59.075 federal employees and the military. 00:13:00.402 --> 00:13:04.962 The American Federation of Government Employees, or AFGE, has countered 00:13:04.962 --> 00:13:08.482 with a proposal of its own, endorsing legislation in the House 00:13:08.482 --> 00:13:11.032 and Senate that would provide a 4.3 00:13:11.032 --> 00:13:13.312 percent pay adjustment in 2026. 00:13:13.931 --> 00:13:19.091 AFGE’s rationale is that federal salaries are, on average, 27 percent 00:13:19.091 --> 00:13:23.071 below those for similar jobs in the private sector, a gap that leads to 00:13:23.071 --> 00:13:27.532 significant recruitment and retention challenges, chronic understaffing, 00:13:27.821 --> 00:13:29.362 and the outsourcing of work. 00:13:30.206 --> 00:13:34.645 This week also saw a major development in federal labor relations as the 00:13:34.645 --> 00:13:39.185 administration announced it would "quit arbitration in disputes that arose under 00:13:39.185 --> 00:13:41.405 the now-cancelled labor contracts". 00:13:42.456 --> 00:13:45.676 Arbitration is a process that allows for the resolution of 00:13:45.676 --> 00:13:49.985 workplace disputes through the decision of a neutral third party. 00:13:50.115 --> 00:13:54.065 The administration’s decision follows its prior directive to end collective 00:13:54.065 --> 00:13:58.535 bargaining for additional agencies and is justified by a broad claim 00:13:58.535 --> 00:14:00.735 of "national security concerns". 00:14:01.645 --> 00:14:05.896 This action appears to challenge a 1977 Supreme Court decision, 00:14:06.519 --> 00:14:07.259 Nolde Bros. 00:14:07.259 --> 00:14:07.900 v. 00:14:08.319 --> 00:14:12.599 Bakery & Confectionary Workers Union Local 358, which held that 00:14:12.599 --> 00:14:16.889 the obligation to arbitrate "may survive contract termination when the 00:14:16.889 --> 00:14:21.219 dispute is over an obligation arguably created by the expired agreement". 00:14:21.879 --> 00:14:25.610 By refusing to arbitrate, the administration is effectively removing 00:14:25.610 --> 00:14:30.110 a key avenue for employees to seek recourse for disputes, signaling a 00:14:30.110 --> 00:14:34.599 significant shift in the balance of power between federal labor and management. 00:14:35.275 --> 00:14:40.335 In response to these actions, an update on the Protect America's Workforce Act (H.R. 00:14:40.335 --> 00:14:42.656 2550) was provided this week. 00:14:43.096 --> 00:14:47.225 This bipartisan legislation aims to overturn the administration's 00:14:47.225 --> 00:14:51.196 executive order that stripped nearly one million federal workers of 00:14:51.196 --> 00:14:52.856 their collective bargaining rights. 00:14:53.565 --> 00:14:58.145 To force a vote on the bill, a discharge petition, known as Discharge Petition No. 00:14:58.145 --> 00:15:00.815 6, is being circulated in the House. 00:15:01.205 --> 00:15:08.296 As of 08 September 2025, the petition has secured 214 of the 218 signatures 00:15:08.296 --> 00:15:12.905 needed to bring the bill to the House floor for an immediate vote, with the 00:15:12.905 --> 00:15:17.936 possibility of a vote as early as October if the remaining signatures are secured. 00:15:18.759 --> 00:15:20.340 New Leave and Pay Provisions 00:15:20.959 --> 00:15:25.410 Despite the high-profile battles over pay and labor rights, federal benefits 00:15:25.410 --> 00:15:27.459 management continues to be a focus. 00:15:28.030 --> 00:15:32.080 An OPM memorandum provided guidance on several important legislative 00:15:32.080 --> 00:15:35.399 changes from the Servicemember Quality of Life Improvement and 00:15:35.399 --> 00:15:41.910 National Defense Authorization Act for Fiscal Year 2025 (FY25 NDAA). 00:15:42.529 --> 00:15:46.350 This memo clarifies several provisions that have been in effect since the 00:15:46.350 --> 00:15:49.420 act’s enactment on 23 December 2024. 00:15:50.250 --> 00:15:54.500 One key change is the increase in military leave accrual and maximum 00:15:54.500 --> 00:15:58.389 carryover amounts under 5 U.S.C. 00:15:58.389 --> 00:16:01.279 6323(a)(1) from 15 to 20 days. 00:16:01.880 --> 00:16:06.550 This means that for fiscal year 2025, employees could have as many as 35 00:16:06.550 --> 00:16:10.900 days of military leave, with 15 days carried over from the previous year 00:16:11.150 --> 00:16:13.439 in addition to the new 20-day accrual. 00:16:14.029 --> 00:16:19.589 For fiscal year 2026 and subsequent years, employees can accrue 20 days and 00:16:19.589 --> 00:16:24.839 carry over up to 20 days, giving them a potential total of 40 days of leave. 00:16:25.635 --> 00:16:29.646 The memo also extends the authority for an agency head to waive the 00:16:29.646 --> 00:16:34.266 annual premium pay cap for certain federal civilian employees working 00:16:34.266 --> 00:16:37.116 overseas through calendar year 2025. 00:16:38.026 --> 00:16:41.725 The new annual limitation for basic pay and premium pay allowed 00:16:41.725 --> 00:16:45.286 under this waiver is set at the official salary rate for the Vice 00:16:45.286 --> 00:16:49.636 President, which is $289,400 for 2025. 00:16:50.005 --> 00:16:54.145 Additionally, the discretionary authority for an agency head to grant 00:16:54.145 --> 00:16:58.866 allowances, benefits, and gratuities to civilian personnel on official duty 00:16:58.866 --> 00:17:03.755 in a combat zone has been extended until the end of fiscal year 2026. 00:17:04.679 --> 00:17:08.020 And that’s a wrap on this week’s Federal Workforce Roundup. 00:17:09.179 --> 00:17:13.549 The landscape for federal employees and retirees is constantly shifting, 00:17:13.910 --> 00:17:17.929 with major decisions being made about everything from pay and job security 00:17:18.270 --> 00:17:21.910 to retirement benefits and the very structure of the civil service. 00:17:22.619 --> 00:17:24.519 Staying informed is your best tool. 00:17:25.189 --> 00:17:29.349 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:17:30.009 --> 00:17:31.109 Thanks for tuning in. 00:17:31.210 --> 00:17:33.979 We’ll be back next week to track the latest developments 00:17:33.979 --> 00:17:35.389 and what they mean for you. 00:17:35.920 --> 00:17:38.910 Until then, stay engaged and be well.