Lawrence: Welcome to The FED Weekly for 7 - 13 September 2025, your essential
weekly briefing on the policies and proposals shaping your career,
your benefits, and your retirement.
Whether youâre a current federal employee navigating changes in the civil service,
or a retiree keeping a close watch on your hard-earned pension and healthcare, this
is your source for the latest news from Capitol Hill and the executive branch.
Each week, we cut through the noise to bring you the critical updates on budget
negotiations, pay raises, workforce policies, and the legislative battles that
directly impact the federal community.
Let's get you up to speed on what happened this past week.
Issues That Affect Current and Retired Federal Workers
Legislative Actions on Social Security and Retirement Planning
This week saw a flurry of activity in Congress directly related to the
Social Security program, a system that provides a critical financial
foundation for millions of retired federal workers and their families.
Two significant bills were introduced, each addressing different facets of
the program's operation and future.
On 10 September 2025, a bipartisan effort led by Representatives Lloyd
Smucker of Pennsylvania and Don Beyer of Virginia resulted in the introduction
of the Claiming Age Clarity Act.
This legislation is designed to help older Americans make more informed
financial decisions about when to begin claiming their Social Security benefits.
The bill seeks to modernize the terminology used by the Social Security
Administration, replacing what lawmakers have described as "bureaucratic jargon"
with more straightforward language.
Specifically, the bill would change "Early Eligibility Age" to "Minimum
Benefit Age," "Full Retirement Age" to "Standard Benefit Age," and "Delayed
Retirement Age" to "Maximum Benefit Age".
The proposed changes are a direct response to the complexity many people
face when navigating a financial decision that has lifetime consequences.
By renaming the key claiming ages, the bill aims to more clearly communicate
the financial trade-offs of each choice.
For example, the new term "Minimum Benefit Age" for age 62 would
highlight the fact that claiming at this point can result in a permanent
benefit reduction of up to 30 percent.
The change from "Full Retirement Age" to "Standard Benefit Age" provides a clear
baseline, while the new "Maximum Benefit Age" for age 70 would underscore the fact
that delaying until that point can result in a benefit increase of up to 24 percent.
The legislation has received support from major advocacy groups, including
AARP, which noted that the bill "will provide American workers with better
and more understandable information" to help them make more informed choices.
A second piece of legislation, the Keep Billionaires Out of Social
Security Act, was introduced on 10 September 2025 by U.S.
Senators Mark R.
Warner and Tim Kaine of Virginia, along with 27 of their Democratic colleagues.
This bill is framed as a measure to protect Social Security from what
its sponsors describe as "harmful actions" by the administration.
The legislation's provisions would directly address several
operational and access issues.
It proposes to prohibit the closure or relocation of Social Security field
offices, preventing what the bill's supporters believe would be a reduction
in service and a loss of employees.
Furthermore, the bill would provide a $5 billion increase in funding to
the Social Security Administration, aimed at improving customer service,
modernizing technology, and reducing the substantial backlogs that currently exist.
The bill also seeks to restore assistance for vulnerable and disabled individuals
and to safeguard Americans' data.
The introduction of this bill suggests a fundamental conflict
over the operational future of the Social Security Administration.
The bill's provisions, particularly the prohibition on office closures,
signal a political counter-movement to what may be an administrative push
for a more streamlined, digital-first approach to government services.
This legislative effort to preserve the physical presence and human
element of Social Security services underscores a widespread concern
that efficiency-driven reforms could inadvertently leave vulnerable
populations without essential support.
The Economic and Fiscal Outlook
Beyond the legislative sphere, the economic and fiscal climate is a major
factor for all federal employees.
On 07 September 2025, the Bureau of Labor Statistics released
its August jobs report, which showed a weak economic picture.
The U.S.
economy added only around 22,000 jobs, marking a second consecutive
weak month of job growth.
The unemployment rate also rose to 4.3
percent, with over 25 percent of unemployed workers having been
jobless for more than six months, a level not seen since June 2016.
The report's commentary suggests that these poor economic numbers are not a
separate force but are directly linked to the federal government's own actions.
The report specifically attributes the weak performance to "mass layoffs
from the federal government" and the "reverberating impact of cancelled
federal grants and contracts".
This analysis indicates that the administrationâs decisions
regarding workforce and spending are actively contributing to
the broader economic downturn.
The government is not merely a passive observer of the economy;
its fiscal and personnel policies are shaping it in a tangible way.
This economic backdrop is particularly relevant in light of the ongoing
congressional stalemate over funding.
Congress has yet to approve any of the appropriations bills necessary
to fund federal agencies for the fiscal year beginning on 01 October.
This sets up the very real possibility of a government shutdown, which would
impact both current and retired workers.
While federal employee and retiree benefits from programs like
Social Security are generally insulated from a shutdown, the
administrative infrastructure and support systems are not.
A shutdown could lead to a halt in the processing of new claims and a
reduction in customer service, affecting the very access points that the
Keep Billionaires Out of Social Security Act is trying to protect.
The political dynamics of this situation are complex.
Congressional Republicans may propose a short-term continuing
resolution that would freeze federal budgets at fiscal 2024 levels.
However, Senate Democrats may reject such a proposal unless it is for a
limited duration and includes safeguards to ensure the administration spends
the funds as stipulated by Congress.
Further complicating matters is the administration's potential use
of a maneuver known as a "pocket recission" to cancel funds that
Congress has already approved.
This would directly affect agency budgets and programs, creating a volatile
and uncertain environment for federal workers and the services they provide.
Issues That Affect Retired Federal Workers
This weekâs news for retired federal workers revolves around
the two significant legislative developments in Congress.
While we touched on them in the first section, it is essential to explore their
specific implications for retirees, for whom these issues are not just policy
matters but are fundamental to their financial security and quality of life.
The Claiming Age Clarity Act is more than a simple name change; it
is a critical piece of legislation aimed at protecting retirees from
an information-based failure.
The current terminology, which includes "Early Eligibility Age," can
unintentionally encourage people to begin claiming benefits as early as
possible without fully grasping the permanent financial consequences.
By introducing the term "Minimum Benefit Age," the bill would make it explicitly
clear that claiming at age 62 is the lowest possible benefit an individual can
receive, a distinction that is crucial when that decision can result in a
permanent reduction of up to 30 percent.
Conversely, the change from "Delayed Retirement Age" to "Maximum Benefit Age"
would serve as a powerful signal to those who have the financial ability to wait.
The new name highlights the significant financial gainâup to 24 percent more than
the standard benefitâthat can be achieved by delaying retirement until age 70.
This bill, therefore, is a proactive measure to ensure that retirees and
those nearing retirement have a clear understanding of the financial stakes,
helping them avoid costly, irreversible decisions that could impact their
income for the rest of their lives.
Similarly, the Keep Billionaires Out of Social Security Act addresses an
operational challenge that directly affects the daily lives of retirees.
While many financial transactions are now digital, a large segment
of the retired population relies on in-person assistance for complex issues.
The potential closure or relocation of Social Security field offices would
create significant barriers to access for many, particularly those who are
not technologically savvy, have limited internet access, or have disabilities
that make remote interactions challenging.
The billâs provision to prohibit these closures is a clear statement
that physical access and the human element of public service are not
outdated conveniences but are essential components of the social safety net.
The proposed $5 billion funding increase would also be directly
felt by retirees, as it is intended to reduce backlogs and improve the
overall customer service experience at the Social Security Administration.
For millions of retirees, the ability to speak to a real person and
receive timely assistance is not a luxury but a fundamental necessity.
Issues That Affect Current Federal Workers
The Overhaul of Federal Hiring
The U.S.
Office of Personnel Management, or OPM, is implementing a fundamental restructuring
of the federal hiring process, which it describes as the "Merit Hiring Plan".
The week's announcements reveal two key pillars of this initiative.
On 05 September 2025, OPM announced the new "Rule of Many," which replaces the
more than 150-year-old "rule of three".
This new rule allows agencies to select from a broader pool
of top-ranked candidates based on skills-based assessments.
It replaces the previous rigid "category rating" system, giving hiring managers
the flexibility to rank candidates using "cut-off scores, a set number,
or a percentage of top applicants".
According to OPM Director Scott Kupor, this change aims to bring in the most
capable people to serve the public.
This reform is not an isolated policy but is part of a larger,
coordinated effort to modernize the entire talent acquisition process.
This became even clearer with OPM's announcement of a two-page resume
standard for federal job applications submitted through USAJOBS, which will
take effect on 27 September 2025.
This change is also a key highlight of the Merit Hiring Plan and is
designed to streamline the review process for hiring managers by
ensuring they focus on the most relevant qualifications and experience.
OPM has provided a transition period and is offering updated guidance
and resume-building tools to assist applicants in meeting the new standard.
These two changes, when viewed together, represent a top-to-bottom
re-engineering of how the federal government recruits and selects its
workforce, shifting the focus toward a more skills-based and agile model.
The Battle for Pay and Labor Rights
The issue of federal employee pay for 2026 remains a contentious topic.
On one side is President Trumpâs alternative pay plan, which was
issued on 28 August 2025 and calls for a one percent across-the-board
pay raise for most federal employees.
This plan also includes a freeze on locality pay at its current levels.
A notable exception to this plan is for some law enforcement occupations, which
would receive an overall raise of 3.8
percent to match the increase expected for members of the military.
This proposal breaks with a long-standing tradition of pay raise parity between
federal employees and the military.
The American Federation of Government Employees, or AFGE, has countered
with a proposal of its own, endorsing legislation in the House
and Senate that would provide a 4.3
percent pay adjustment in 2026.
AFGEâs rationale is that federal salaries are, on average, 27 percent
below those for similar jobs in the private sector, a gap that leads to
significant recruitment and retention challenges, chronic understaffing,
and the outsourcing of work.
This week also saw a major development in federal labor relations as the
administration announced it would "quit arbitration in disputes that arose under
the now-cancelled labor contracts".
Arbitration is a process that allows for the resolution of
workplace disputes through the decision of a neutral third party.
The administrationâs decision follows its prior directive to end collective
bargaining for additional agencies and is justified by a broad claim
of "national security concerns".
This action appears to challenge a 1977 Supreme Court decision,
Nolde Bros.
v.
Bakery & Confectionary Workers Union Local 358, which held that
the obligation to arbitrate "may survive contract termination when the
dispute is over an obligation arguably created by the expired agreement".
By refusing to arbitrate, the administration is effectively removing
a key avenue for employees to seek recourse for disputes, signaling a
significant shift in the balance of power between federal labor and management.
In response to these actions, an update on the Protect America's Workforce Act (H.R.
2550) was provided this week.
This bipartisan legislation aims to overturn the administration's
executive order that stripped nearly one million federal workers of
their collective bargaining rights.
To force a vote on the bill, a discharge petition, known as Discharge Petition No.
6, is being circulated in the House.
As of 08 September 2025, the petition has secured 214 of the 218 signatures
needed to bring the bill to the House floor for an immediate vote, with the
possibility of a vote as early as October if the remaining signatures are secured.
New Leave and Pay Provisions
Despite the high-profile battles over pay and labor rights, federal benefits
management continues to be a focus.
An OPM memorandum provided guidance on several important legislative
changes from the Servicemember Quality of Life Improvement and
National Defense Authorization Act for Fiscal Year 2025 (FY25 NDAA).
This memo clarifies several provisions that have been in effect since the
actâs enactment on 23 December 2024.
One key change is the increase in military leave accrual and maximum
carryover amounts under 5 U.S.C.
6323(a)(1) from 15 to 20 days.
This means that for fiscal year 2025, employees could have as many as 35
days of military leave, with 15 days carried over from the previous year
in addition to the new 20-day accrual.
For fiscal year 2026 and subsequent years, employees can accrue 20 days and
carry over up to 20 days, giving them a potential total of 40 days of leave.
The memo also extends the authority for an agency head to waive the
annual premium pay cap for certain federal civilian employees working
overseas through calendar year 2025.
The new annual limitation for basic pay and premium pay allowed
under this waiver is set at the official salary rate for the Vice
President, which is $289,400 for 2025.
Additionally, the discretionary authority for an agency head to grant
allowances, benefits, and gratuities to civilian personnel on official duty
in a combat zone has been extended until the end of fiscal year 2026.
And thatâs a wrap on this weekâs Federal Workforce Roundup.
The landscape for federal employees and retirees is constantly shifting,
with major decisions being made about everything from pay and job security
to retirement benefits and the very structure of the civil service.
Staying informed is your best tool.
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Thanks for tuning in.
Weâll be back next week to track the latest developments
and what they mean for you.
Until then, stay engaged and be well.