WEBVTT

NOTE
This file was generated by Descript 

00:00:00.050 --> 00:00:05.639
Lawrence: Welcome to The FED Weekly for
30 November to 6 December 2025, your

00:00:05.639 --> 00:00:10.390
essential weekly briefing on the policies
and proposals shaping your career,

00:00:10.649 --> 00:00:12.720
your benefits, and your retirement.

00:00:13.279 --> 00:00:17.879
Whether you’re a current federal employee
navigating changes in the civil service

00:00:18.280 --> 00:00:23.090
or a retiree keeping a close watch on your
hard-earned pension and healthcare, this

00:00:23.090 --> 00:00:27.780
is your source for the latest news from
Capitol Hill and the executive branch.

00:00:28.403 --> 00:00:32.274
Each week, we cut through the noise to
bring you the critical updates on budget

00:00:32.274 --> 00:00:37.664
negotiations, pay raises, workforce
policies, and the legislative battles that

00:00:37.664 --> 00:00:39.933
directly impact the federal community.

00:00:40.544 --> 00:00:44.174
Let's get you up to speed on
what happened this past week.

00:00:44.925 --> 00:00:47.945
Issues That Affect Current
and Retired Federal Workers

00:00:48.545 --> 00:00:50.346
The Final Hours of Open Season

00:00:50.927 --> 00:00:54.878
If you have not yet finalized your
health insurance elections for 2026,

00:00:55.228 --> 00:00:57.848
you are officially out of time to delay.

00:00:58.487 --> 00:01:03.927
The Federal Benefits Open Season concludes
tomorrow, Monday, 8 December 2025.

00:01:04.497 --> 00:01:08.377
This deadline applies to the Federal
Employees Health Benefits (FEHB)

00:01:08.377 --> 00:01:12.937
program, the newly established Postal
Service Health Benefits (PSHB) program,

00:01:13.308 --> 00:01:17.097
and the Federal Employees Dental and
Vision Insurance Program (FEDVIP).

00:01:17.803 --> 00:01:20.803
It is critical to understand
that this year carries more

00:01:20.803 --> 00:01:22.783
risk for inaction than usual.

00:01:23.244 --> 00:01:27.003
Several plans have exited the program
or reduced their service areas.

00:01:27.394 --> 00:01:32.213
For instance, the GEHA Indemnity
Benefit Plan Elevate Plus is not

00:01:32.213 --> 00:01:34.804
available for the 2026 plan year.

00:01:35.753 --> 00:01:38.903
If you are currently enrolled in a
terminating plan and do not make a new

00:01:38.903 --> 00:01:43.673
selection by tomorrow night, the Office
of Personnel Management (OPM) will

00:01:43.673 --> 00:01:46.214
automatically map you to a default plan.

00:01:46.243 --> 00:01:49.253
For standard civil service
employees, this default is the

00:01:49.253 --> 00:01:51.394
GEHA Benefit Plan High Option.

00:01:51.793 --> 00:01:55.883
For Postal Service employees
transitioning to the PSHB, the default

00:01:55.883 --> 00:02:00.383
is the Blue Cross and Blue Shield
Service Benefit Plan FEP Blue Focus.

00:02:01.082 --> 00:02:04.472
While automatic mapping ensures
you are not left uninsured, the

00:02:04.472 --> 00:02:07.992
default plan may not match your
specific medical needs or budget.

00:02:08.501 --> 00:02:12.061
Furthermore, for active employees
who utilize Flexible Spending

00:02:12.061 --> 00:02:17.431
Accounts (FSAFEDS), you must
actively re-enroll by 8 December.

00:02:17.882 --> 00:02:20.081
These accounts do not renew automatically.

00:02:20.501 --> 00:02:23.661
The IRS has raised the pre-tax
contribution limit for health care

00:02:23.661 --> 00:02:29.781
FSAs to $3,400 for 2026, a $100
increase from the previous year,

00:02:29.812 --> 00:02:32.482
with a carryover maximum of $680.

00:02:32.972 --> 00:02:36.612
Given the rising cost of medical
care, failing to re-enroll effectively

00:02:36.612 --> 00:02:38.331
leaves tax savings on the table.

00:02:39.553 --> 00:02:43.274
The 2026 Pay Raise:
Awaiting the Executive Order

00:02:43.851 --> 00:02:47.581
Turning to compensation, the federal
community remains in a state of

00:02:47.581 --> 00:02:52.161
suspended animation regarding
the January 2026 pay adjustment.

00:02:53.031 --> 00:02:56.802
As of this week, we are still awaiting
the President’s formal Executive

00:02:56.802 --> 00:02:58.812
Order to finalize the pay tables.

00:02:59.451 --> 00:03:06.212
On 28 August 2025, the President issued
an alternative pay plan proposing a 1.0

00:03:06.272 --> 00:03:10.851
percent across-the-board base pay increase
for the General Schedule, with zero

00:03:10.851 --> 00:03:13.401
increase allocated for locality pay.

00:03:14.201 --> 00:03:17.432
This proposal stands in
stark contrast to the 3.8

00:03:17.432 --> 00:03:20.412
percent raise slated
for military personnel.

00:03:20.832 --> 00:03:23.811
While there was significant
advocacy from federal unions and

00:03:23.811 --> 00:03:27.721
some members of Congress to achieve
parity between civilian and military

00:03:27.721 --> 00:03:31.941
raises, no legislation has advanced
to override the President’s plan.

00:03:32.543 --> 00:03:35.214
However, there is a
notable exception emerging.

00:03:35.754 --> 00:03:39.163
The administration has directed
OPM to utilize special pay

00:03:39.163 --> 00:03:43.333
authorities to provide an additional
increase of approximately 2.8

00:03:43.333 --> 00:03:46.453
percent for specific law
enforcement officers.

00:03:47.033 --> 00:03:51.403
This targeted adjustment is intended
to bring their total raise to 3.8

00:03:51.403 --> 00:03:54.024
percent, matching the military figure.

00:03:54.094 --> 00:03:58.844
OPM is currently in consultation with
agencies to determine exactly which

00:03:58.844 --> 00:04:03.424
law enforcement categories will qualify
for this special rate, with the goal

00:04:03.424 --> 00:04:07.114
of releasing the special rate tables
by the end of the calendar year.

00:04:08.631 --> 00:04:12.522
For the vast majority of the
workforce—including retirees who look

00:04:12.522 --> 00:04:18.292
to pay tables to project future high-3
calculations for their successors—the 1.0

00:04:18.292 --> 00:04:21.382
percent figure appears
increasingly likely to stand.

00:04:21.962 --> 00:04:25.371
Unless Congress inserts language
into a spending bill before

00:04:25.371 --> 00:04:27.561
the end of December, the 1.0

00:04:27.561 --> 00:04:31.662
percent raise will be finalized by
Executive Order and effective the

00:04:31.662 --> 00:04:35.051
first full pay period of January 2026.

00:04:35.837 --> 00:04:37.457
Thrift Savings Plan Updates

00:04:38.041 --> 00:04:42.222
In financial news, the Thrift
Savings Plan (TSP) is reflecting

00:04:42.222 --> 00:04:44.012
the broader economic uncertainty.

00:04:44.582 --> 00:04:49.062
As of December 2025, the interest
rate for the G Fund—the government

00:04:49.062 --> 00:04:52.932
securities fund utilized by
risk-averse investors and retirees

00:04:52.932 --> 00:04:56.391
seeking stability—has risen to 4.125

00:04:56.391 --> 00:04:56.911
percent.

00:04:57.382 --> 00:05:00.702
This rate is calculated based on
the weighted average yield of U.S.

00:05:00.971 --> 00:05:04.452
Treasury securities and
has ticked up from 4.00

00:05:04.452 --> 00:05:09.372
percent in previous months as the Federal
Reserve maintains higher interest rates.

00:05:09.991 --> 00:05:12.892
For those with exposure to the
equity markets, the year has

00:05:12.892 --> 00:05:14.741
been volatile but profitable.

00:05:15.232 --> 00:05:18.552
The I Fund, which tracks
international stocks, has posted a

00:05:18.552 --> 00:05:21.332
year-to-date return of nearly 29.5

00:05:21.332 --> 00:05:25.592
percent as of early December,
while the C Fund is up 18.2

00:05:25.592 --> 00:05:26.161
percent.

00:05:26.831 --> 00:05:30.732
However, participants should be
aware of year-end processing dates.

00:05:30.931 --> 00:05:35.671
Withdrawals processed after noon
Eastern Time on 29 December 2025

00:05:36.052 --> 00:05:41.792
will be reported to the IRS as income
for the 2026 tax year, not 2025.

00:05:42.591 --> 00:05:45.641
Planning your distributions
carefully in these final weeks

00:05:45.942 --> 00:05:47.902
is essential for tax management.

00:05:48.531 --> 00:05:49.742
Economic Data Delays

00:05:50.371 --> 00:05:53.861
Finally, a note on the data
environment we are operating in.

00:05:54.322 --> 00:05:59.801
The Bureau of Labor Statistics (BLS)
announced on 5 December 2025 that the

00:05:59.801 --> 00:06:04.062
release of the monthly jobs report
has been delayed until 16 December.

00:06:04.582 --> 00:06:08.201
This delay is a direct ripple effect
of the recent government shutdown,

00:06:08.461 --> 00:06:10.791
which restricted BLS operations.

00:06:11.402 --> 00:06:15.762
This lack of timely data complicates
the ability of policymakers and unions

00:06:15.762 --> 00:06:20.312
to argue for economic adjustments,
as the "gold standard" labor market

00:06:20.312 --> 00:06:24.131
data for October will simply never
be published in its entirety.

00:06:24.802 --> 00:06:28.742
This is a subtle but significant
degradation of the administrative

00:06:28.742 --> 00:06:32.471
infrastructure that underpins
federal pay and policy decisions.

00:06:33.081 --> 00:06:35.661
Issues That Affect Retired Federal Workers

00:06:36.275 --> 00:06:38.926
2026 COLA and Benefit Adjustments

00:06:39.515 --> 00:06:42.745
Looking forward to the new year,
the Cost-of-Living Adjustment

00:06:42.745 --> 00:06:45.276
(COLA) for 2026 has been finalized.

00:06:45.626 --> 00:06:49.186
Social Security benefits and
Supplemental Security Income (SSI)

00:06:49.186 --> 00:06:51.335
payments will increase by 2.8

00:06:51.335 --> 00:06:52.875
percent in 2026.

00:06:53.375 --> 00:06:54.465
This same 2.8

00:06:54.465 --> 00:06:57.586
percent adjustment applies
to Civil Service Retirement

00:06:57.586 --> 00:06:59.695
System (CSRS) annuities.

00:07:00.343 --> 00:07:05.883
For SSI recipients, the increased
payments will begin on 31 December 2025.

00:07:06.503 --> 00:07:10.543
For Social Security and CSRS retirees,
the increase will appear in the

00:07:10.543 --> 00:07:13.014
payment received in January 2026.

00:07:13.817 --> 00:07:18.768
While this increase is intended to offset
inflation, retirees must carefully balance

00:07:18.768 --> 00:07:21.248
this against rising health care costs.

00:07:21.918 --> 00:07:26.378
With FEHB premiums increasing
for the 2026 plan year, a

00:07:26.378 --> 00:07:28.468
significant portion of this 2.8

00:07:28.468 --> 00:07:32.167
percent COLA may be absorbed
by higher insurance deductions.

00:07:32.648 --> 00:07:37.257
It is imperative that you review your
annuity statement in January to understand

00:07:37.257 --> 00:07:39.578
your net change in purchasing power.

00:07:40.151 --> 00:07:43.381
Additionally, earning limits for
retirees under full retirement

00:07:43.381 --> 00:07:45.662
age will increase in 2026.

00:07:46.302 --> 00:07:49.992
The earnings limit will rise to $24,480.

00:07:50.542 --> 00:07:55.212
For every $2 earned above this
limit, $1 is withheld from benefits.

00:07:55.922 --> 00:08:00.052
If you are a FERS retiree receiving
the Special Retirement Supplement, or

00:08:00.052 --> 00:08:04.722
a Social Security beneficiary who has
returned to work, ensure your 2026

00:08:04.751 --> 00:08:09.292
income projections remain under this
threshold to avoid unexpected penalties.

00:08:10.065 --> 00:08:12.595
Issues That Affect Current Federal Workers

00:08:13.191 --> 00:08:17.572
The first week of December has been
defined by a dramatic legal confrontation

00:08:17.831 --> 00:08:22.521
between federal unions and the State
Department, as well as new regulatory

00:08:22.521 --> 00:08:24.801
threats to civil service protections.

00:08:25.427 --> 00:08:27.348
The State Department RIF Lawsuit

00:08:27.954 --> 00:08:31.703
The most significant story of the
week is the collision between agency

00:08:31.703 --> 00:08:33.914
layoffs and the Continuing Resolution.

00:08:34.454 --> 00:08:38.034
The spending bill passed in November
contains a specific provision—Section

00:08:38.263 --> 00:08:44.303
120—that prohibits agencies from using
federal funds to "initiate, carry out,

00:08:44.533 --> 00:08:51.174
implement, or otherwise notice a reduction
in force" (RIF) through 30 January 2026.

00:08:51.830 --> 00:08:55.690
Despite this statutory prohibition,
the State Department attempted to

00:08:55.690 --> 00:08:59.899
proceed with the termination of
approximately 250 Foreign Service

00:08:59.899 --> 00:09:03.710
Officers on Friday, 5 December 2025.

00:09:04.500 --> 00:09:08.079
The Department argued that because
these RIF notices were originally

00:09:08.079 --> 00:09:11.759
issued in July—months before
the shutdown and the subsequent

00:09:11.759 --> 00:09:14.269
CR—the prohibition did not apply.

00:09:14.890 --> 00:09:18.839
They claimed they were merely
finalizing a process already in motion.

00:09:19.450 --> 00:09:23.199
The American Federation of Government
Employees (AFGE) and the American

00:09:23.199 --> 00:09:27.960
Foreign Service Association (AFSA)
filed an emergency lawsuit, AFGE v.

00:09:27.960 --> 00:09:32.860
Biden, seeking a Temporary Restraining
Order (TRO) to halt the firings.

00:09:33.769 --> 00:09:36.869
On the evening of Thursday,
4 December 2025, U.S.

00:09:36.869 --> 00:09:39.699
District Judge Susan Illston
ruled in favor of the unions.

00:09:40.322 --> 00:09:42.412
Judge Illston’s ruling was precise.

00:09:42.811 --> 00:09:45.581
She focused on the word
"implement" in the statute.

00:09:46.172 --> 00:09:50.422
She determined that by separating
employees on 5 December, the State

00:09:50.422 --> 00:09:54.752
Department would be taking an affirmative
step to "implement" a RIF, which

00:09:54.752 --> 00:09:56.622
Congress had explicitly forbidden.

00:09:57.071 --> 00:10:01.032
She issued a TRO blocking the
layoffs, stating that the unions

00:10:01.032 --> 00:10:04.852
were likely to succeed on the merits
and that the employees would suffer

00:10:04.852 --> 00:10:07.061
irreparable harm if terminated.

00:10:07.767 --> 00:10:11.487
This ruling has immediate implications
beyond the State Department.

00:10:12.278 --> 00:10:16.307
There are roughly 800 other federal
employees at agencies such as the

00:10:16.307 --> 00:10:20.137
Department of Education’s Office for
Civil Rights, the Defense Technical

00:10:20.137 --> 00:10:23.717
Information Center, and the Small
Business Administration who are

00:10:23.717 --> 00:10:26.287
facing similar "carry-over" RIFs.

00:10:27.037 --> 00:10:30.887
The unions are now seeking to
expand the scope of the TRO to

00:10:30.887 --> 00:10:32.807
protect these workers as well.

00:10:33.387 --> 00:10:38.508
For now, the 250 State Department
employees remain on the payroll, but

00:10:38.508 --> 00:10:42.678
the legal battle will continue as
the administration is expected to

00:10:42.678 --> 00:10:45.198
challenge the interpretation of the CR.

00:10:45.961 --> 00:10:47.931
Schedule F Regulations Re-Emerge

00:10:48.522 --> 00:10:52.522
While the courts battle over current
layoffs, a longer-term threat to the civil

00:10:52.522 --> 00:10:54.622
service structure re-emerged this week.

00:10:55.102 --> 00:11:00.291
On 5 December 2025, Government Executive
reported that the Office of Personnel

00:11:00.291 --> 00:11:05.681
Management (OPM) has circulated draft
final regulations for "Schedule F"

00:11:06.031 --> 00:11:08.191
(now renamed Schedule Policy/Career).

00:11:09.267 --> 00:11:12.237
These regulations would create
a new job classification for

00:11:12.398 --> 00:11:16.208
"policy-related" positions,
effectively stripping those employees

00:11:16.208 --> 00:11:20.448
of their civil service protections
and making them at-will employees.

00:11:21.807 --> 00:11:25.268
The draft regulations reportedly
describe the existing civil service

00:11:25.268 --> 00:11:30.178
protections as "unconstitutional
overcorrections" to the patronage

00:11:30.178 --> 00:11:33.918
system and assert that the President
requires the ability to implement

00:11:33.918 --> 00:11:39.018
an agenda "free from antidemocratic,
unaccountable bureaucratic resistance".

00:11:39.630 --> 00:11:43.739
OPM estimates that approximately
50,000 federal workers could be

00:11:43.739 --> 00:11:45.949
reclassified under this new schedule.

00:11:46.440 --> 00:11:50.219
This represents about 2 percent
of the civilian workforce, but the

00:11:50.219 --> 00:11:54.839
impact would be concentrated in
policy-making and regulatory roles.

00:11:55.850 --> 00:11:59.410
The publication of these final
rules appears imminent, setting

00:11:59.410 --> 00:12:03.619
the stage for a profound structural
change to the federal service unless

00:12:03.619 --> 00:12:05.910
blocked by Congress or the courts.

00:12:06.663 --> 00:12:09.594
NDAA 2026: The Fight for Union Rights

00:12:10.167 --> 00:12:14.207
On Capitol Hill, the legislative
process for the Fiscal Year 2026

00:12:14.238 --> 00:12:18.928
National Defense Authorization
Act (NDAA) is reaching its climax.

00:12:19.678 --> 00:12:24.777
On 4 December 2025, the National
Federation of Federal Employees

00:12:24.777 --> 00:12:29.048
(NFFE) sent a letter to congressional
leadership urging the retention of a

00:12:29.048 --> 00:12:31.087
critical amendment in the final bill.

00:12:31.678 --> 00:12:35.798
The House version of the NDAA includes a
provision that would restore collective

00:12:35.798 --> 00:12:40.548
bargaining rights for Department of
Defense (DoD) civilian employees.

00:12:41.218 --> 00:12:44.377
These rights were previously
curtailed by an Executive Order

00:12:44.377 --> 00:12:46.737
citing national security concerns.

00:12:47.558 --> 00:12:52.398
The NFFE letter, supported by the Federal
Workers Alliance, argues that the removal

00:12:52.398 --> 00:12:56.798
of these rights was counterproductive
and costly, and that unionized civilians

00:12:56.998 --> 00:13:01.507
have supported the DoD mission for
decades without compromising security.

00:13:02.277 --> 00:13:06.267
Because this provision exists in the
House bill but not the Senate version,

00:13:06.807 --> 00:13:10.247
it is vulnerable to being stripped
out during the conference committee

00:13:10.247 --> 00:13:12.487
negotiations currently underway.

00:13:13.107 --> 00:13:17.928
The final conference report is expected
soon, and its content will determine

00:13:17.928 --> 00:13:23.038
whether hundreds of thousands of DoD
civilians regain their union protections.

00:13:23.726 --> 00:13:24.925
Wage Grade Pay Raises

00:13:25.531 --> 00:13:28.741
Finally, there is positive news
for the blue-collar workforce.

00:13:29.202 --> 00:13:33.782
On 1 December 2025, it was confirmed
that retroactive pay raises are

00:13:33.782 --> 00:13:39.831
finally being processed for more than
118,000 DoD Wage Grade (WG) employees.

00:13:40.446 --> 00:13:44.026
These employees, paid under the
Federal Wage System, had seen their

00:13:44.026 --> 00:13:49.106
2024 pay adjustments delayed due to
administrative gridlock and the shutdown.

00:13:49.656 --> 00:13:53.805
The DoD Wage Committee has now
authorized the updates, and the raises

00:13:53.805 --> 00:13:59.516
are being applied retroactively to
their original effective dates in 2024.

00:14:00.195 --> 00:14:04.926
While the payout timeline will vary by
payroll provider, the confirmation that

00:14:04.926 --> 00:14:09.256
the freeze has thawed is a significant
relief for the trade and craft

00:14:09.256 --> 00:14:11.576
workers essential to base operations.

00:14:12.159 --> 00:14:15.550
And that’s a wrap on this week’s
Federal Workforce Roundup.

00:14:16.350 --> 00:14:20.720
The landscape for federal employees
and retirees is constantly shifting,

00:14:20.979 --> 00:14:25.430
with major decisions being made about
everything from pay and job security

00:14:25.649 --> 00:14:29.710
to retirement benefits and the very
structure of the civil service.

00:14:30.179 --> 00:14:32.249
Staying informed is your best tool.

00:14:32.470 --> 00:14:36.869
Be sure to subscribe wherever you get your
podcasts, so you never miss an update.

00:14:37.489 --> 00:14:38.519
Thanks for tuning in.

00:14:38.550 --> 00:14:41.510
We’ll be back next week to
track the latest developments

00:14:41.510 --> 00:14:42.920
and what they mean for you.

00:14:43.459 --> 00:14:46.279
Until then, stay engaged and be well.