Lawrence: Welcome to The FED Weekly for 16-22 November 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
The period between November 16 and November 22, 2025, falls squarely
within the annual Federal Benefits Open Season, a critical window running
from Monday, November 10, 2025, through Monday, December 8, 2025.
This open enrollment period is mandatory for all federal employees and annuitants
to review their coverage for the upcoming 2026 calendar year, covering
the Federal Employees Health Benefits Program (FEHB), the Federal Employees
Dental and Vision Insurance Program (FEDVIP), and the Federal Flexible
Spending Account Program (FSAFEDS).
The Critical Federal Benefits Open Season Window
While Open Season is a regular occurrence, the stakes are exceptionally high this
year due to significant plan changes and terminations requiring mandatory action.
The deadlines are immutable: both the Federal Employees Dental and Vision
Insurance Program and the Federal Flexible Spending Account Program end
their enrollment period at 11:59 p.m.
Eastern Time on Monday, December 8, 2025, with the Federal Employees
Health Benefits Program also concluding enrollment at 11:59 p.m.
that evening.
For those utilizing pre-tax flexible spending accounts, specifically FSAFEDS,
the requirement is non-negotiable: participation does not roll over.
Current employees must actively re-enroll during the Open Season if
they wish to continue participation in the FSAFEDS program for 2026.
Failure to act results in the cessation of the benefit on January 1, 2026.
Crucial Alert Regarding Terminating Plans
The most urgent item during this week revolves around the necessity of
action for participants whose plans are terminating at the end of 2025.
Information distributed throughout the week confirmed that several plans are
leaving the FEHB Program, and at least one dental plan is leaving FEDVIP.
For current employees and retirees enrolled in a terminating FEHB
plan, enrollment in a new plan during Open Season is mandatory.
The U.S.
Office of Personnel Management has established a critical default provision:
any participant who fails to select a new FEHB plan will be automatically enrolled
in the GEHA Benefit Plan - High Option.
This automatic default, while ensuring continuity of coverage,
carries substantial implications.
The selection of the GEHA Benefit Plan - High Option, a typically
robust and high-premium plan, dictates that an unaware annuitant or current
employee who previously opted for a less expensive, perhaps high-deductible
or low-premium plan, may face a significant, unanticipated increase
in monthly premium costs for 2026.
The governmentâs move to designate a "High Option" plan as the default acts as a
safeguard against leaving the individual without adequate coverage; however,
it removes the essential element of consumer choice and mandates a substantial
financial commitment upon the enrollee.
This strips the individual of their customary choice and forces them into
a high premium liability, requiring intense media focus during this period.
For the single dental plan leaving FEDVIP at the end of 2025, the consequence
is simpler but equally critical: those enrolled in that specific plan must
actively enroll in a new dental plan.
Unlike the FEHB program, if no action is taken, the individual will simply
lose dental insurance coverage for 2026.
2026 TSP Contribution Limits and Mandatory Roth Catch-Up
Another crucial financial planning matter for both current and retired
employees with existing Thrift Savings Plan (TSP) accounts stems from changes
announced just prior to this period, regarding 2026 contribution limits.
These changes, effective January 1, 2026, are part of the ongoing
implementation of the Setting Every Community Up for Retirement Enhancement
Act of 2022, also known as SECURE 2.0.
The new regulation centers on catch-up contributions for
participants age 50 or older in 2026.
Specifically, if an individual earned more than the Internal Revenue Service
income threshold of $150,000 in 2025âa figure adjusted annually for
inflationâand their total contributions exceed the elective deferral limit, those
additional catch-up contributions must be designated as Roth contributions.
The change is not elective for high-income earners.
The adjustment to Roth catch-up contributions will be handled
automatically by the payroll office, meaning no direct action
is needed to make the change.
However, this automatic action mandates a specific tax strategy for
retirement savings for this segment of the high-earning workforce.
It compels participants to strategically forecast their 2026 tax situation based
on their 2025 earnings, impacting year-end financial planning during November 2025.
The only mechanism for an eligible high-earner who prefers to maintain
contributions under the Traditional (pre-tax) model for their catch-up
amount is to adjust their regular TSP contributions downward, ensuring
their total contributions do not exceed the elective deferral limit.
This mandatory application of the Roth structure for catch-up contributions above
the income cap removes the traditional elective nature of this retirement
decision, requiring high-earning employees to rapidly calculate their 2025 income
to adjust their 2026 strategy before the January 1, 2026, change takes effect.
Issues That Affect Retired Federal Workers
For annuitants and those preparing for retirement, the week focused on the
final administrative details of annual benefits updates and specific rules
governing the transition from employee to annuitant status during Open Season.
Annuity Cost-of-Living Adjustments Context
While the official Cost-of-Living Adjustment (COLA) rates for 2026 were
finalized earlier, the context of those adjustments remains pertinent as retirees
received their November benefit payments.
For the year 2026, annuitants under the Civil Service Retirement
System (CSRS) received a 2.5
percent increase, while those under the Federal Employees Retirement
System (FERS) received a 2.0
percent increase.
Furthermore, annuitants who began receiving their benefits late in
2024 faced prorated adjustments.
These individuals receive one-twelfth of the full COLA for
each month they received benefits.
For example, an annuity commencing on November 30, 2024, would receive
only a fraction of the full 2025 adjustment, a calculation that
governed the final benefit amount received in this payment cycle.
To receive the full COLA, an annuity must have commenced no
later than December 31, 2023.
Special Open Season Instructions for Retiring Employees
A key administrative directive was issued for federal employees who are
actively transitioning into retirement status during the current Open Season.
Employees planning to retire prior to January 1, 2026, must adhere
to a specific protocol for making their 2026 benefit elections.
The directive emphasizes that these prospective retirees should not
submit their Open Season changes through the typical electronic
systems used by active employees.
Instead, to ensure seamless coverage, they are required to include their
completed benefit election forms (such as the SF-2809) directly within their
retirement package submission to their servicing Human Resources office.
This explicit instruction regarding the submission method reflects
the complex administrative need to synchronize the end of active employee
health coverage with the commencement of annuitant health benefits.
The standard benefit implementation dates, such as the effective date of
January 11, 2026, for FEHB changes, necessitate this manual process.
Failure to follow this specific protocol risks confusion, delays,
or errors in the application of 2026 health and dental benefits, especially
critical if the employee is currently enrolled in a plan that is terminating.
By requiring the forms to be submitted with the retirement package, OPM ensures
the benefit changes are processed correctly under the new annuitant status.
Issues That Affect Current Federal Workers
Major Legislative Action: Defense of Federal Union Rights
The most significant legislative news of the week occurred on Monday,
November 17, 2025, when Congressman Jared Golden (Democrat of Maine)
successfully forced floor action on a critical federal labor bill.
The Protect America's Workforce Act of 2025
Representative Golden announced that his bipartisan bill, the Protect Americaâs
Workforce Act of 2025, had secured the requisite 218 signatures on a discharge
petition, successfully forcing the House of Representatives to schedule a vote.
This procedural milestone was achieved after Republican Congressmen Nick
LaLota (New York) and Mike Lawler (New York) signed the petition, bringing
the total number of sponsors to 218.
The petition mechanism allows a majority of the House to force a vote on a
piece of legislation, bypassing the usual control exerted by the Speaker
of the House and committee chairs.
The bill is designed to nullify an Executive Order issued on March 27 by the
Trump administration that systematically stripped collective bargaining rights
from approximately one million unionized federal employees across various agencies.
Representative Golden asserted that the strong bipartisan support for the
billâwhich included seven Republican signatoriesâdemonstrated that Congress
would not tolerate executive overreach seeking to erode the merit-based civil
service and federal labor agreements.
He publicly called on Speaker Mike Johnson to schedule a clean, up-or-down vote.
The success of the discharge petition itself is a rare procedural feat,
demonstrating a fundamental, bipartisan legislative check on executive power.
This action on November 17, 2025, immediately alters the
negotiating dynamic between federal unions and agency management.
It signals that legislative support for federal collective bargaining rights
is robust enough to overcome high-level political resistance, potentially
strengthening the position of federal unions in ongoing negotiations even before
the bill is formally signed into law.
The forced vote compels political leaders to take a public stance on
the core principle of federal labor relations, shifting momentum decisively
in favor of restoring union rights.
OPMâs New Administrative Enforcement Regime
The U.S.
Office of Personnel Management issued a series of authoritative memoranda
during the week, indicating a decisive pivot from simply issuing policy
guidance to establishing a rigorous, enforceable compliance structure
for key administration priorities.
Governmentwide Studies on DEIA and Return to Office Compliance (November 19, 2025)
On November 19, 2025, Curt Levey, Associate Director of Merit System
Accountability and Compliance (MSAC), issued a memorandum titled
Governmentwide Studies on the Presidentâs Directives to End Diversity,
Equity, Inclusion, and Accessibility Programs, and Return to In-Person Work.
This memo initiated two formal, government-wide compliance studies
to assess agency efforts in accordance with statutory authority
and Administration priorities.
The two studies focus on agency actions (1) to implement the
requirements to end Diversity, Equity, Inclusion, and Accessibility (DEIA)
programs, and (2) to have employees return to in-person work (RTO).
This marks a serious administrative escalation, moving these directives from
general policy objectives to measurable compliance mandates subject to formal
audit and oversight by the MSAC.
OPM directed agencies to nominate and submit the names and email addresses
of two dedicated points-of-contactâone for DEIA compliance and one for RTO
complianceâby the rapidly approaching deadline of Wednesday, November 26, 2025.
The urgency of this short submission timeline indicates high
administrative priority, forcing agency leadership to prioritize
these directives above other Human Resources functions during this week.
The immediate implication for the current workforce is that the RTO directive is now
subject to formal OPM audit and oversight.
This means agencies must swiftly develop specific metrics and reporting structures
to demonstrate verifiable compliance with mandated in-office presence requirements.
The MSACâs involvement signals OPMâs intention to scrutinize agency
implementation actively, which will profoundly affect the daily schedules
and telework agreements of current federal employees as agency leadership
moves to avoid negative audit findings.
Clarification of Manager Personal Liability (November 21, 2025)
Two days after the launch of the compliance studies, on
November 21, 2025, Veronica E.
Hinton, Associate Director of the Office of Workforce Policy and Innovation,
issued a memorandum addressing Personal Liability for Managers and Supervisors
Conducting Personnel Management Functions.
This memorandum aims to reassure management officials regarding the risk of
personal financial or legal liability when executing difficult personnel actions.
OPM clarified that when managers and supervisors carry out performance
management functionsâsuch as issuing performance ratings, placing employees
on Performance Improvement Plans (PIPs), or proposing reductions in grade or
removal for unacceptable performanceâthey are acting under the authority and on
behalf of the agency (the employer).
The memo explicitly states that if an employee challenges a performance-based
action, the United States or the agency is held responsible, not the
manager in their individual capacity.
In the unusual event a manager is sued personally for actions within
the scope of their employment, the Department of Justice typically
provides legal representation.
Furthermore, OPM reiterated that federal agencies are required by law (Section
642 of Public Law 106-58, as amended) to reimburse eligible management officials,
including supervisors, for up to one-half of the cost of professional liability
insurance, providing an important safeguard against liability concerns.
The timing of this memo is strategically significant.
By clarifying the agencyâs backing and addressing managerial risk aversion
just as OPM is initiating audits that will require strict enforcement
of policies like RTO, the agency is actively removing a major psychological
impediment to aggressive management.
Managers often hesitate to implement strict adverse actions due to fear of
personal cost from appeals or lawsuits.
By clarifying the agencyâs responsibility, OPM facilitates
stricter enforcement of current federal policies, particularly regarding
performance and conduct standards.
It is important to note, however, that managers can still be held responsible
for misuse of authority, specifically unlawful discrimination, harassment,
or prohibited personnel practices related to whistleblower protections.
Other Administrative Memos
The week also featured two other notable administrative updates concerning the
senior ranks of the federal government.
On November 18, 2025, a memo from Veronica E.
Hinton confirmed the Continued Pay Freeze for Certain Senior Political
Officials, maintaining existing salary constraints for non-career leaders.
Additionally, on November 19, 2025, OPM Director Scott Kupor issued guidance
related to New Senior Executive Service, Senior Professional, GS-15
and GS-14 Development Programs, signaling ongoing efforts to restructure
and enhance leadership pipelines and talent development across the
senior levels of the civil service.
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.