WEBVTT NOTE This file was generated by Descript 00:00:00.040 --> 00:00:03.180 Lawrence: Welcome to the Federal Workforce Roundup, your essential 00:00:03.180 --> 00:00:06.850 weekly briefing on the policies and proposals shaping your career, 00:00:07.110 --> 00:00:09.490 your benefits, and your retirement. 00:00:10.330 --> 00:00:14.320 Whether you’re a current federal employee navigating changes in the civil service, 00:00:14.860 --> 00:00:20.210 or a retiree keeping a close watch on your hard-earned pension and healthcare, this 00:00:20.210 --> 00:00:24.870 is your source for the latest news from Capitol Hill and the executive branch. 00:00:25.428 --> 00:00:29.368 Each week, we cut through the noise to bring you the critical updates on budget 00:00:29.368 --> 00:00:35.128 negotiations, pay raises, workforce policies, and the legislative battles that 00:00:35.128 --> 00:00:37.278 directly impact the federal community. 00:00:37.748 --> 00:00:40.678 Let's get you up to speed on what happened this week. 00:00:41.634 --> 00:00:45.704 The first week of June 2025 brought several important developments 00:00:45.704 --> 00:00:46.944 for the federal community. 00:00:47.434 --> 00:00:50.224 Below is a roundup of key news affecting U.S. 00:00:50.224 --> 00:00:54.734 federal employees and retirees, organized by category for clarity. 00:00:55.410 --> 00:00:58.600 Issues That Affect Current and Retired Federal Workers 00:00:59.150 --> 00:01:03.790 Congressional Reconciliation Bill – Civil Service Changes: A major budget 00:01:03.790 --> 00:01:08.170 reconciliation package moving through Congress contains sweeping provisions 00:01:08.170 --> 00:01:10.040 targeting federal pay and benefits. 00:01:10.680 --> 00:01:15.410 The House narrowly passed the “One Big Beautiful Bill Act” in late May, and the 00:01:15.410 --> 00:01:17.660 Senate is now weighing its own version. 00:01:18.226 --> 00:01:22.236 The legislation would eliminate the FERS annuity supplement (the “bridge” 00:01:22.236 --> 00:01:27.916 payment for retirees under 62) effective 2028, with exemptions for certain 00:01:27.916 --> 00:01:30.356 mandatory early-retirement personnel. 00:01:31.000 --> 00:01:35.179 It also introduces an “at-will” employment option for new hires – newly 00:01:35.179 --> 00:01:38.449 hired feds would choose between keeping normal civil-service job 00:01:38.449 --> 00:01:41.419 protections but contributing ~14.4% 00:01:41.419 --> 00:01:46.559 of salary to FERS, or giving up tenure protections and contributing 9.4% 00:01:46.789 --> 00:01:48.089 (a 5% increase). 00:01:48.708 --> 00:01:54.088 Other provisions would impose a $350 fee for Merit Systems Protection Board appeals 00:01:54.407 --> 00:01:59.448 (refunded if the employee prevails) and require audits to remove ineligible family 00:01:59.448 --> 00:02:02.157 members from FEHB health insurance plans. 00:02:02.801 --> 00:02:07.381 Notably, lawmakers removed some earlier proposals – a switch to a “high-5” 00:02:07.381 --> 00:02:12.192 annuity calculation and a general FERS contribution hike – after opposition. 00:02:12.898 --> 00:02:16.728 Federal employee organizations warn these changes could be devastating: 00:02:16.958 --> 00:02:21.918 the National Active and Retired Federal Employees Association (NARFE) cautioned 00:02:21.918 --> 00:02:26.748 that increasing FERS contributions is essentially “a 5% pay cut” for 00:02:26.748 --> 00:02:31.358 new employees while also undermining merit-based civil service protections. 00:02:32.002 --> 00:02:36.292 The American Federation of Government Employees (AFGE) blasted the package 00:02:36.292 --> 00:02:40.082 as “a direct assault on federal employees” that would slash take-home 00:02:40.082 --> 00:02:42.462 pay and obliterate workplace rights. 00:02:43.028 --> 00:02:46.738 Unions are urging the Senate to strip these provisions, and final 00:02:46.738 --> 00:02:49.378 negotiations are expected by early July. 00:02:50.018 --> 00:02:55.748 Supreme Court Expands Paid Military Leave: In a victory for federal employees 00:02:55.748 --> 00:02:57.938 who are military reservists, the U.S. 00:02:57.938 --> 00:03:01.018 Supreme Court ruled on April 30 in Feliciano v. 00:03:01.018 --> 00:03:06.417 DOT that agencies must grant an additional 22 days of paid military leave per year 00:03:06.628 --> 00:03:10.128 for reserve members called to active duty during a national emergency. 00:03:10.706 --> 00:03:15.536 The Court held that a federal employee is “entitled to differential pay if the 00:03:15.536 --> 00:03:19.896 reservist’s service temporally coincides with a declared national emergency” 00:03:20.256 --> 00:03:24.506 – without any need to prove a direct connection to the specific emergency. 00:03:25.149 --> 00:03:28.529 This means current or former federal workers who served on such 00:03:28.529 --> 00:03:32.609 active duty orders may have been improperly denied paid leave and 00:03:32.609 --> 00:03:34.309 pay differentials in the past. 00:03:34.789 --> 00:03:36.829 Affected individuals (e.g. 00:03:36.829 --> 00:03:40.359 veterans of post-9/11 contingency operations) can 00:03:40.359 --> 00:03:42.309 file claims for compensation. 00:03:42.760 --> 00:03:47.760 Successful claimants who are still federal employees will have leave restored, while 00:03:47.760 --> 00:03:52.879 those who retired or left government can receive lump-sum back pay for the missed 00:03:52.879 --> 00:03:55.249 leave, at their salary rate at retirement. 00:03:55.875 --> 00:04:00.095 This court decision strengthens USERRA rights and could benefit thousands of 00:04:00.095 --> 00:04:05.106 veteran federal employees and retirees who were previously forced to use personal 00:04:05.106 --> 00:04:07.736 leave or take a pay cut when mobilized. 00:04:08.423 --> 00:04:10.983 Issues That Affect Current Federal Workers 00:04:11.617 --> 00:04:16.567 Federal Pay Raise Outlook: The White House’s fiscal year 2026 budget, 00:04:16.567 --> 00:04:21.207 released in early June, proposed no pay increase for federal civilian employees. 00:04:21.797 --> 00:04:26.417 President Trump’s budget was silent on a 2026 raise (widely interpreted as a 00:04:26.417 --> 00:04:30.438 plan for 0%), even as it included a 3.8% 00:04:30.467 --> 00:04:32.157 raise for military personnel. 00:04:32.748 --> 00:04:35.628 Unless Congress intervenes, this could mean a freeze on 00:04:35.628 --> 00:04:37.287 General Schedule pay next year. 00:04:37.748 --> 00:04:41.967 (By contrast, for 2025 the military received a 4.5% 00:04:41.967 --> 00:04:44.808 increase while civilians got about 2%.) 00:04:45.474 --> 00:04:48.924 Lawmakers and federal employee advocates are already pushing back: 00:04:49.373 --> 00:04:52.924 Representative Gerry Connolly (D-VA) and Senator Brian Schatz (D-HI) 00:04:53.154 --> 00:04:58.304 reintroduced their annual pay parity bill, this time proposing a 4.3% 00:04:58.304 --> 00:05:02.334 average pay raise for federal employees in 2026. 00:05:02.994 --> 00:05:07.284 While such bills (the latest version of the FAIR Act) have historically failed 00:05:07.284 --> 00:05:12.354 to pass, they signal growing pressure to at least match military raises. 00:05:13.004 --> 00:05:17.234 Unions argue that “pay parity” – equal percentage raises for civilian and 00:05:17.234 --> 00:05:21.484 military – is needed to maintain federal workforce morale and competitiveness. 00:05:22.234 --> 00:05:27.463 The final word on the 2026 raise will likely come in late August (when the 00:05:27.463 --> 00:05:32.183 President must formally announce any alternative pay plan) and ultimately in 00:05:32.183 --> 00:05:34.664 Congress or a December executive order. 00:05:35.456 --> 00:05:37.326 Telework Guidance Amid D.C. 00:05:37.326 --> 00:05:42.266 Events: In an interesting turn, OPM is encouraging telework and flexible 00:05:42.266 --> 00:05:44.416 schedules for Washington, D.C.-area 00:05:44.416 --> 00:05:47.666 federal employees in mid-June due to a large public event. 00:05:48.166 --> 00:05:52.056 In a memo to agencies, OPM advised that preparations for the Army’s 00:05:52.056 --> 00:05:57.246 250th Birthday Parade (scheduled for June 14 on the National Mall) could 00:05:57.246 --> 00:06:01.195 snarl traffic starting Wednesday, June 11, and urged agencies to 00:06:01.195 --> 00:06:04.986 permit “situational/unscheduled telework and other workforce 00:06:04.986 --> 00:06:06.746 flexibilities” later that week. 00:06:07.346 --> 00:06:11.476 Agencies can also approve employee leave or alternative work hours 00:06:11.646 --> 00:06:13.256 to alleviate the disruptions. 00:06:13.816 --> 00:06:18.036 This guidance comes just months after the administration’s push to curtail 00:06:18.036 --> 00:06:23.486 routine telework – President Trump in January ordered agencies to end widespread 00:06:23.486 --> 00:06:28.336 telework arrangements – but practical needs have prompted a temporary exception. 00:06:28.980 --> 00:06:32.100 Notably, the USDA even instructed its D.C. 00:06:32.100 --> 00:06:36.670 headquarters staff to work remotely for three weeks because the agency’s 00:06:36.670 --> 00:06:40.560 building is being used to quarter soldiers participating in the parade. 00:06:41.336 --> 00:06:46.106 Employees reporting on-site were warned to expect delays and monitor road closures. 00:06:46.742 --> 00:06:51.322 While brief, this flexibilities memo tacitly acknowledges that telework 00:06:51.392 --> 00:06:55.252 remains an important tool for continuity of operations, even as 00:06:55.252 --> 00:06:57.512 normal telework policies have tightened. 00:06:58.172 --> 00:07:02.622 OPM Moves to Quicken Discipline Process: The Office of Personnel 00:07:02.622 --> 00:07:06.582 Management announced a proposed rule on June 2 that would make it 00:07:06.612 --> 00:07:10.782 easier to fire federal employees for misconduct or poor performance. 00:07:11.372 --> 00:07:15.402 The rule is meant to “enhance the federal government’s ability to hold 00:07:15.402 --> 00:07:19.942 employees accountable for serious misconduct,” according to OPM’s statement. 00:07:20.794 --> 00:07:23.734 It would implement President Trump’s “Department of Government 00:07:23.734 --> 00:07:27.914 Efficiency” workforce initiative by streamlining the procedures for 00:07:27.914 --> 00:07:32.734 removing employees who “break the public’s trust,” effectively extending 00:07:32.734 --> 00:07:37.604 the tougher suitability standards used in hiring to post-hire conduct. 00:07:38.382 --> 00:07:42.572 Currently, agencies face lengthy, complex processes to discipline or remove 00:07:42.572 --> 00:07:47.082 personnel, and administration officials argue this breeds a culture with “no 00:07:47.082 --> 00:07:49.392 recourse for lack of performance.” 00:07:49.842 --> 00:07:53.992 OPM’s Acting Director Chuck Ezell said the changes will cut red tape 00:07:54.262 --> 00:07:58.082 and reinforce that public service is a privilege, not a right. 00:07:58.956 --> 00:08:02.096 The proposed regulations (set to be published in the Federal 00:08:02.096 --> 00:08:07.116 Register on June 3) will be open for public comment through July 3. 00:08:07.934 --> 00:08:12.204 Federal employee unions are expected to object, as the rules would likely 00:08:12.204 --> 00:08:16.694 curtail the time and appeals avenues employees have in adverse actions. 00:08:17.284 --> 00:08:21.684 This is one of several workforce policies the administration is pursuing to speed 00:08:21.684 --> 00:08:24.414 up hiring and firing in government. 00:08:25.122 --> 00:08:30.862 Workforce Reduction Plans and Pushback: The administration’s drive to shrink 00:08:30.862 --> 00:08:35.312 the federal workforce by reorganizing agencies and cutting staff continues to 00:08:35.312 --> 00:08:37.742 unfold – and to meet legal challenges. 00:08:38.402 --> 00:08:41.352 At the Department of Veterans Affairs, Secretary Doug Collins 00:08:41.352 --> 00:08:46.832 has proposed cutting around 80,000 jobs (about 15% of VA’s staff) to 00:08:46.832 --> 00:08:49.282 bring headcount back to 2019 levels. 00:08:49.882 --> 00:08:53.022 Additionally, agencies across government have been directed to 00:08:53.022 --> 00:08:57.052 prepare Reduction in Force (RIF) plans as part of President Trump’s 00:08:57.052 --> 00:08:59.391 initiative to “optimize” the workforce. 00:08:59.812 --> 00:09:04.102 However, a federal court injunction has blocked implementation of mass RIFs at 00:09:04.102 --> 00:09:06.692 many agencies pending further review. 00:09:07.445 --> 00:09:11.106 (This stems from a lawsuit by federal employee unions, where a 00:09:11.106 --> 00:09:15.236 judge in late April barred agencies from executing the governmentwide 00:09:15.236 --> 00:09:20.006 reorganization via layoffs; that case is now headed to the Supreme Court). 00:09:20.680 --> 00:09:24.890 In agencies not explicitly covered by the injunction, some layoffs are 00:09:24.890 --> 00:09:28.730 moving forward – for example, the National Archives informed nearly 00:09:28.730 --> 00:09:34.100 100 employees (about 3% of its staff) of RIF separations this month. 00:09:34.735 --> 00:09:39.085 Federal employee unions and advocacy groups are actively protesting these cuts. 00:09:39.585 --> 00:09:43.435 On June 6, hundreds of veterans and federal workers rallied on the National 00:09:43.435 --> 00:09:48.246 Mall to oppose the VA downsizing, arguing it will harm veteran services. 00:09:48.935 --> 00:09:53.516 AFGE National President Everett Kelley (himself an Army veteran) noted 00:09:53.516 --> 00:09:57.366 that “the VA is a place of veterans serving veterans,” and warned the 00:09:57.366 --> 00:10:02.165 “mass reorganization plans … are a targeted attack on veteran jobs, health 00:10:02.165 --> 00:10:04.055 care, benefits and union rights.” 00:10:04.663 --> 00:10:09.283 Other speakers, including VA nurses, warned that frontline capacity would be 00:10:09.283 --> 00:10:13.954 stretched dangerously thin, impacting medical care and benefits processing. 00:10:14.571 --> 00:10:19.862 One Homeland Security employee at the rally, an Army veteran, voiced concern 00:10:19.862 --> 00:10:24.222 that “if they’re going to cut people, benefits are going to go down…everything 00:10:24.222 --> 00:10:25.771 is going to roll downhill.” 00:10:26.375 --> 00:10:31.185 Despite these objections, agency leaders insist that only “non-mission-critical” 00:10:31.185 --> 00:10:35.026 positions will be eliminated and that efficiencies will improve. 00:10:35.925 --> 00:10:39.156 This tug-of-war between the administration’s reform agenda and 00:10:39.156 --> 00:10:43.825 employee protections is ongoing – with further legal showdowns expected 00:10:43.825 --> 00:10:47.465 if the Supreme Court weighs in, and continued public pressure 00:10:47.465 --> 00:10:49.365 from unions to protect jobs. 00:10:50.001 --> 00:10:53.891 Postal Service Contract Agreement: In labor news, the American Postal 00:10:53.891 --> 00:10:56.211 Workers Union (APWU) and the U.S. 00:10:56.211 --> 00:10:59.981 Postal Service reached a tentative deal on a new union contract. 00:11:00.401 --> 00:11:06.711 On June 6, APWU President Mark Dimondstein announced a tentative 2024–2027 Collective 00:11:06.711 --> 00:11:09.521 Bargaining Agreement (CBA) with USPS. 00:11:10.153 --> 00:11:13.373 The agreement is set for three years and covers postal clerks, 00:11:13.443 --> 00:11:18.133 maintenance workers, and other APWU-represented employees nationwide. 00:11:18.653 --> 00:11:22.113 While full details of the tentative contract were not immediately released, 00:11:22.363 --> 00:11:26.953 such agreements typically address wages (cost-of-living adjustments, general 00:11:26.953 --> 00:11:29.583 raises), benefits, and work rules. 00:11:30.173 --> 00:11:34.843 The deal now goes to APWU’s membership for ratification in the coming weeks. 00:11:35.459 --> 00:11:39.919 Reaching a negotiated settlement is a positive development, as it averts the 00:11:39.919 --> 00:11:44.859 need for binding arbitration and ensures continuity of operations for USPS. 00:11:45.319 --> 00:11:50.679 (The previous APWU contract had expired in late 2024, and negotiations 00:11:50.679 --> 00:11:52.259 had been ongoing for months.) 00:11:52.739 --> 00:11:57.069 This is the second postal union contract settled recently – the National Postal 00:11:57.069 --> 00:12:01.199 Mail Handlers Union also approved a contract earlier – indicating a 00:12:01.199 --> 00:12:03.569 period of labor stability at USPS. 00:12:03.609 --> 00:12:07.189 For current postal employees (who are federal employees in a separate 00:12:07.189 --> 00:12:12.169 personnel system), the tentative deal likely means secured wage increases and 00:12:12.169 --> 00:12:17.159 preserved benefits through September 2027, pending union ratification. 00:12:17.743 --> 00:12:20.323 Issues That Affect Retired Federal Workers 00:12:20.945 --> 00:12:25.455 Retirement Claims Backlog and Processing Reforms: The influx of federal 00:12:25.455 --> 00:12:29.825 retirements surged unexpectedly this spring, straining the Office of Personnel 00:12:29.825 --> 00:12:31.805 Management’s processing capacity. 00:12:32.225 --> 00:12:38.435 OPM received 15,048 new retirement claims in May 2025, an unseasonably 00:12:38.435 --> 00:12:42.235 large number that far exceeds May totals in recent years. 00:12:42.839 --> 00:12:48.129 As a result, OPM’s retirement claims backlog jumped by 33% in one month, rising 00:12:48.129 --> 00:12:54.389 from about 16,100 pending cases at end of April to 21,483 cases at end of May. 00:12:55.075 --> 00:12:59.325 (For context, this backlog is nearly as high as the peak seen each January, 00:12:59.325 --> 00:13:01.145 when retirements typically spike.) 00:13:02.165 --> 00:13:06.445 The unusual surge is likely driven by the ongoing reorganization efforts 00:13:06.445 --> 00:13:10.295 and voluntary early-out offers prompting more employees to retire. 00:13:10.863 --> 00:13:15.033 In response, OPM has just rolled out a new fully digital retirement application 00:13:15.033 --> 00:13:17.423 system aimed at speeding up processing. 00:13:17.943 --> 00:13:22.823 As of June 2, all federal agencies must submit retirement paperwork electronically 00:13:23.163 --> 00:13:28.673 via OPM’s Online Retirement Application (ORA) platform, and OPM will no longer 00:13:28.673 --> 00:13:30.663 accept paper retirement packages. 00:13:31.313 --> 00:13:36.393 OPM announced it successfully migrated over 400 million personnel records to 00:13:36.393 --> 00:13:40.973 a new electronic Official Personnel Folder system as part of this overhaul. 00:13:42.031 --> 00:13:46.861 The modernized system lets staff process cases online (no more shipping paper 00:13:46.861 --> 00:13:51.541 folders) and includes a more user-friendly interface for reviewing files. 00:13:52.117 --> 00:13:55.467 The goal is to dramatically reduce the infamous backlog and 00:13:55.467 --> 00:13:59.357 shorten processing times (which currently average about 2 months). 00:14:00.237 --> 00:14:04.987 If the new digital process works as intended, retiring federal workers should 00:14:04.987 --> 00:14:09.867 see faster annuity adjudications and fewer delays in getting their pension payments. 00:14:10.827 --> 00:14:14.787 OPM’s push to automate retirement processing actually began in the 00:14:14.787 --> 00:14:18.947 prior administration, but it has accelerated under the Department of 00:14:18.947 --> 00:14:20.647 Government Efficiency’s oversight. 00:14:21.383 --> 00:14:25.623 Bottom line for recent and soon-to-be retirees: expect improvements in 00:14:25.623 --> 00:14:29.313 how quickly your retirement claim is handled, though OPM is still 00:14:29.313 --> 00:14:31.583 digging out from May’s large volume. 00:14:32.241 --> 00:14:35.871 Social Security Fairness Act Implementation: A significant 00:14:35.871 --> 00:14:39.841 new law benefiting many federal retirees is now being implemented. 00:14:40.221 --> 00:14:44.961 In January 2025, President Biden signed the Social Security Fairness Act, 00:14:45.271 --> 00:14:49.711 which repealed the Windfall Elimination Provision (WEP) and Government Pension 00:14:49.711 --> 00:14:55.231 Offset (GPO) – two long-criticized rules that reduced Social Security benefits 00:14:55.401 --> 00:14:59.861 for those who also receive a government pension (such as CSRS retirees) or 00:14:59.861 --> 00:15:02.131 spousal benefits from such retirees. 00:15:02.727 --> 00:15:07.437 As of mid-2025, the Social Security Administration is well underway 00:15:07.437 --> 00:15:11.547 in adjusting benefits and issuing back payments under the new law. 00:15:12.377 --> 00:15:13.517 About 3.2 00:15:13.517 --> 00:15:18.327 million affected retirees are entitled to benefit increases, including retroactive 00:15:18.327 --> 00:15:22.517 payments for benefits since January 2024 (when the repeal took effect). 00:15:23.181 --> 00:15:27.111 By late May, SSA reported it had processed over 2.5 00:15:27.111 --> 00:15:31.421 million retroactive payments to retired teachers, police, federal employees 00:15:31.621 --> 00:15:35.531 and others who had been “locked out” of full benefits due to WEP/GPO. 00:15:36.377 --> 00:15:41.157 This represents roughly 90% of the cases, with the remaining complex cases 00:15:41.157 --> 00:15:43.907 to be completed by the end of 2025. 00:15:44.547 --> 00:15:49.867 Many CSRS retirees (who spent careers not paying into Social Security) are seeing 00:15:49.867 --> 00:15:54.147 their Social Security checks increase, in some cases by hundreds of dollars per 00:15:54.147 --> 00:15:57.257 month, now that the WEP penalty is gone. 00:15:57.837 --> 00:16:01.497 Spouses and widows of federal retirees are likewise now eligible 00:16:01.497 --> 00:16:05.427 for full Social Security survivor benefits without the GPO offset. 00:16:06.197 --> 00:16:10.357 SSA’s guidance says most beneficiaries should have received a one-time 00:16:10.357 --> 00:16:13.857 lump sum by the end of March for retroactive amounts, and higher 00:16:13.857 --> 00:16:15.737 monthly payments began in April. 00:16:16.305 --> 00:16:20.565 Those who haven’t seen an expected adjustment can contact SSA, but the 00:16:20.565 --> 00:16:22.455 vast majority have been automated. 00:16:23.165 --> 00:16:27.305 This is a long-awaited change – the culmination of decades of lobbying 00:16:27.305 --> 00:16:31.465 by retiree groups – and it substantially boosts retirement income 00:16:31.465 --> 00:16:33.355 for affected federal annuitants. 00:16:33.925 --> 00:16:37.735 Note: These changes do not affect the basic civil service pension; 00:16:38.105 --> 00:16:41.995 they only increase Social Security benefits for those who earned them. 00:16:42.135 --> 00:16:45.725 Retirees who spent part of their careers in Social Security-covered 00:16:45.725 --> 00:16:50.335 employment (or who are entitled to Social Security via other non-federal 00:16:50.335 --> 00:16:55.435 jobs) should review their new benefit statements to understand the increases. 00:16:56.229 --> 00:17:01.229 2026 COLA Predictions and Inflation Trends: Though the next cost-of-living 00:17:01.229 --> 00:17:04.729 adjustment for federal retirees won’t be official until the autumn, 00:17:05.159 --> 00:17:06.979 early indicators are emerging. 00:17:07.479 --> 00:17:11.659 The COLA for 2025 (received this January) was 2.5%, 00:17:11.709 --> 00:17:15.060 reflecting cooling inflation compared to the big 8.7% 00:17:15.060 --> 00:17:16.479 bump in 2023. 00:17:17.050 --> 00:17:20.069 So far, inflation in 2025 has remained moderate. 00:17:20.560 --> 00:17:24.839 The Consumer Price Index for Workers (CPI-W), which is the basis 00:17:24.839 --> 00:17:29.739 for federal retirement and Social Security COLAs, was up about 2.2% 00:17:29.899 --> 00:17:31.840 over the 12 months through May. 00:17:32.464 --> 00:17:36.864 If that trend holds, the COLA payable in January 2026 would be modest. 00:17:37.464 --> 00:17:41.374 The Senior Citizens League, a retirees’ advocacy group, released 00:17:41.374 --> 00:17:43.793 a projection of roughly a 2.4% 00:17:43.793 --> 00:17:46.934 COLA for 2026 based on the latest data. 00:17:47.672 --> 00:17:52.022 This is only a rough guess – the actual COLA will be determined by CPI-W 00:17:52.022 --> 00:17:54.852 averages in July, August, and September. 00:17:55.362 --> 00:17:59.422 As of now, it appears 2026’s adjustment will be in the low-2% 00:17:59.452 --> 00:18:03.272 range, assuming inflation doesn’t accelerate in the coming months. 00:18:03.896 --> 00:18:08.036 It’s worth noting that FERS retirees (who make up about 44% of federal 00:18:08.036 --> 00:18:12.636 annuitants) receive COLAs that can be slightly reduced if inflation exceeds 2%. 00:18:13.196 --> 00:18:16.506 In other words, if the COLA calculation comes out above 2%, 00:18:16.506 --> 00:18:22.126 FERS COLAs are capped at 2% or CPI-W minus 1%, depending on the level. 00:18:22.790 --> 00:18:27.020 But with current inflation levels, that likely won’t come into play this year. 00:18:27.420 --> 00:18:30.950 All retirees will likely get the full CPI-based COLA. 00:18:31.560 --> 00:18:34.650 Meanwhile, Social Security beneficiaries are on track for a 00:18:34.650 --> 00:18:40.580 similar COLA in 2026 (since the Social Security COLA is identical to CSRS 00:18:40.580 --> 00:18:43.350 COLA and based on the same index). 00:18:43.940 --> 00:18:46.920 We will know more after the summer – and in mid-October, 00:18:46.920 --> 00:18:50.660 the 2026 COLA will be formally announced by the Labor Department. 00:18:50.800 --> 00:18:54.520 Retirees should plan for a modest increase, and keep an eye on 00:18:54.520 --> 00:18:58.390 energy and food prices which could still sway the final number. 00:18:59.010 --> 00:19:03.310 Overall, the post-pandemic inflation spike has abated, leading to more 00:19:03.310 --> 00:19:07.730 typical COLA adjustments that help maintain purchasing power without the 00:19:07.730 --> 00:19:09.860 extremes of the past couple years. 00:19:10.584 --> 00:19:15.114 Each of these developments from early June 2025 carries implications 00:19:15.114 --> 00:19:17.474 for federal employees and retirees. 00:19:17.994 --> 00:19:22.644 Legislative proposals in Congress could reshape benefits and job protections if 00:19:22.644 --> 00:19:27.274 enacted, so many in the federal community are watching the progress of the budget 00:19:27.274 --> 00:19:29.734 bill and related reforms closely. 00:19:30.364 --> 00:19:34.574 At the same time, executive actions and court decisions are actively changing 00:19:34.574 --> 00:19:39.524 the landscape – from how federal agencies manage their workforces (telework, 00:19:40.104 --> 00:19:44.814 discipline, staffing levels) to how retirees receive earned benefits 00:19:45.194 --> 00:19:47.404 (pensions, Social Security, COLAs). 00:19:48.434 --> 00:19:51.854 Current federal workers should stay informed about potential changes 00:19:51.854 --> 00:19:55.934 to their pay, rights, and workplace policies, while retired employees 00:19:55.934 --> 00:19:59.364 should take note of benefit updates that may affect their income. 00:20:00.554 --> 00:20:04.254 This week’s news underscores the dynamic nature of federal employment 00:20:04.644 --> 00:20:07.644 – whether you’re still on the job or enjoying retirement, staying 00:20:07.644 --> 00:20:09.894 abreast of policy changes is key. 00:20:09.924 --> 00:20:14.514 The Federal employee community, through its unions and associations, continues 00:20:14.514 --> 00:20:16.844 to advocate vigorously on these issues. 00:20:17.194 --> 00:20:21.134 We will continue to provide updates on any new developments impacting 00:20:21.134 --> 00:20:25.584 pay, benefits, and the wellbeing of federal workers and retirees. 00:20:26.276 --> 00:20:29.426 And that’s a wrap on this week’s Federal Workforce Roundup. 00:20:30.116 --> 00:20:34.566 The landscape for federal employees and retirees is constantly shifting, 00:20:34.786 --> 00:20:39.546 with major decisions being made about everything from pay and job security 00:20:39.846 --> 00:20:43.686 to retirement benefits and the very structure of the civil service. 00:20:44.416 --> 00:20:46.826 Staying informed is your best tool. 00:20:47.186 --> 00:20:50.906 Be sure to subscribe wherever you get your podcasts, so you never miss an update. 00:20:51.486 --> 00:20:52.376 Thanks for tuning in. 00:20:52.376 --> 00:20:55.076 We’ll be back next week to track the latest developments 00:20:55.076 --> 00:20:56.446 and what they mean for you. 00:20:56.896 --> 00:21:00.296 Until then, stay engaged and be well.