Government Executive - Pay & Benefits

Federal retirees face more than a COLA change in 2027

Tammy Flanagan — Thu, 15 Oct 2026 15:00:00 -0400

If you’re retired from federal service, a bigger benefit check in 2027 is welcome news. But how much more you’ll get depends on your retirement system, and there are other changes on the horizon that could affect your bottom line.

The cost-of-living adjustment announced this week is 3.6% for CSRS annuities, Social Security benefits, military retirement benefits and VA disability benefits. Eligible FERS annuities will get a smaller 2.6% increase. Here’s what that means for your retirement check.

CSRS retirement and survivor benefits

If you receive a CSRS annuity, your monthly payment will increase by 3.6%. A $4,000 monthly annuity, for example, would go up by about $144, bringing it to approximately $4,144 before deductions. Survivor annuities get the same adjustment, though your first COLA may be prorated based on how many months you’ve been on the annuity roll.

FERS Retirement and Survivor Benefits

Because the COLA is more than 3%, eligible FERS annuitants receive the COLA rate minus one percentage point. The 2027 FERS COLA is therefore 2.6%, not 3.6%. For example, a $3,000 monthly FERS annuity would increase by about $78, to approximately $3,078 before deductions. The FERS spousal Basic Employee Death Benefit is adjusted by the full 3.6% CSRS COLA to approximately $45,377.34 up from $43,800.53 in 2026. The official announcement will be reported by OPM later. This is in addition to one-half of the final annual pay (or average pay, if higher).

COLA increases for FERS annuitants only apply to the retiree’s basic annuity (not the annuity supplement). For survivor annuitants, COLA applies to both the basic survivor annuity and supplement (if payable) annuity. The COLA increase is prorated according to the annuity commencing date during an annuitant’s first year on the annuity roll. This provision applies to FERS annuitants who are eligible for an “immediate” COLA at retirement. Not all FERS annuitants will receive an immediate FERS COLA. FERS COLAs generally do not apply to annuitants who are under age 62 as of Dec. 1, 2025, except for:

Spouse, former spouse, or insurable interest survivor annuitants;
Certain disability annuitants;
Those who retired under the special provisions for law enforcement officers, firefighters, and Capitol Police;
Those who retired under the special provisions for air traffic controllers; and
Those who retired under the special provision for military reserve technicians (age 50, 25 years of service) because they ceased to quality for military membership on account of disability;

FERS disability annuitants receiving the 60% rate during their first year on the disability roll will not receive a COLA increase.

FERS retirees may want to pay attention to proposed legislation, H.R. 491 /S.624: Equal COLA Act that would provide full cost-of-living adjustments, based on the relevant change in consumer prices, to Federal Employees Retirement System annuities. Don’t get too excited about this proposal, however, according to GovTrack.us, this bill is in the first stage of the legislative process. It was introduced by Congress on Jan. 16, 2025, and has only a nine percent chance of passing at this time.

FERS Annuity Supplement Earning Limit

FERS annuitants receiving an annuity supplement are subject to an earnings test. The annuity supplement is reduced if the annuitant earns more than the exempt amount of earnings set forth each year by the Social Security Administration. The Social Security earnings limitation for 2027 is $25,560.00. If a FERS annuitant earns more than this amount, annuity supplement will be reduced by $1.00 for every $2.00 earned over the minimum level unless the annuitant retired under the minimum retirement age and retired under one of the special provisions related to these specific employee populations: law enforcement officers, firefighters, air traffic controllers, military reserve technicians separated for loss of military membership. The 2026 earnings survey will be sent to current retirees in the spring of 2027. The earnings limit for 2026 is $24,480.

Interest Rate for Service Credit Deposits

The official 2027 variable interest rate for FERS and CSRS service credit deposits has not yet been released by the Treasury Department or the Office of Personnel Management (OPM). Treasury typically calculates and announces this specific retirement-related interest rate in late November or December for the upcoming calendar year. The 2026 variable interest rate is 4.25%.

Social Security

Social Security retirement, survivor, and disability benefits will increase by 3.6% beginning with benefits payable in January 2027. The Social Security Administration estimates that the average retired-worker benefit will rise from $2,095 to $2,170 per month—an increase of about $75. The exact change for an individual may differ slightly because Social Security applies the annual COLA to the Primary Insurance Amount determined at the Normal Retirement Age (67 if born in 1960 or later). If you choose to retire earlier, your benefit will be lower than your PIA. On the other hand, if you choose to retire after you reach your normal retirement age, your benefit will be higher than your PIA.

Other 2027 Amounts That Change

Social Security taxable maximum wage for the 6.2% FICA tax increases from $184,500 to $192,300.

One credit of coverage is earned if Social Security covered wages $1,970 in 2027, up from $1,890 in 2026 (four credits earned if wages are $7,880 or more in 2027).

Retirement earnings test: the annual limit for beneficiaries under normal retirement age increases to $25,560; the limit for the year a beneficiary reaches full retirement age increases to $67,920 for earnings before the month in the year when the normal retirement age is reached.

Medicare Costs, Part B Premiums, and IRMAA

The 2027 standard Medicare Part B premium, annual deductible, and income-related monthly adjustment amounts have not yet been officially announced. CMS generally releases the following year’s figures in late October or November; for example, the 2026 amounts were released on November 14, 2025. After the 2027 figures are issued, Social Security will generally send beneficiaries a notice in November or early December showing the new benefit amount, Medicare deductions, and net payment beginning in January.

How the Standard Part B Premium Is Calculated

The Part B premium is calculated separately from the Social Security COLA. The Centers for Medicare and Medicaid Services (CMS) actuaries estimate the coming year’s costs for physician and outpatient services, durable medical equipment, certain home health services and physician-administered drugs, expected use of services, medical-price changes, administrative expenses, and a contingency margin. The standard beneficiary premium is generally intended to finance about 25% of projected Part B costs, with federal general revenues financing approximately 75%. Because it is based on Medicare’s projected costs rather than COLA, the premium can rise by more or less than 3.6%. According to the 2026 Medicare Trustees Report, the estimated standard monthly premium for Part B in 2027 will be $209.50.

How IRMAA Is Determined

Income Related Monthly Adjustment Amount (IRMAA) is an additional charge for higher-income beneficiaries enrolled in Part B or Part D. Social Security generally uses modified adjusted gross income reported by the IRS for the tax year two years before the premium year. Therefore, 2027 IRMAA will ordinarily be based on the beneficiary’s 2025 federal tax return. For this purpose, modified adjusted gross income is adjusted gross income plus tax-exempt interest.

Social Security compares that income with statutory brackets for the beneficiary’s tax-filing status. Part B IRMAA tiers increase the beneficiary’s share of program costs above the standard level—generally to approximately 35%, 50%, 65%, 80%, or 85%. Part D uses separate monthly adjustment amounts for the same income tiers, added to the premium charged by the beneficiary’s drug plan. The exact 2027 income thresholds and adjustment amounts will be known only when the official tables are released.

General Pay Adjustment for Active Federal Employees

Active federal employees may also hear the term annual pay adjustment, but that adjustment is separate from the COLA for CSRS and FERS annuitants. Retiree COLAs are tied to the Consumer Price Index for Urban Wage Earners and Clerical Workers, while General Schedule pay adjustments follow a different process intended to reflect changes in private-sector wages and geographic pay differences. The GS base pay schedule is usually adjusted annually each January with an across-the-board pay increase based on nationwide changes in the cost of wages and salaries of private industry workers. Most GS employees are also entitled to locality pay, which is a geographic-based percentage rate that reflects pay levels for non-Federal workers in certain geographic areas as determined by surveys conducted by the U.S. Bureau of Labor Statistics.

Under the statutory process, January General Schedule pay has two potential components. The first is an across-the-board adjustment to the GS base-pay schedule, normally derived from the Employment Cost Index for private-industry wages and salaries, measured from the third quarter of one year to the third quarter of the next, minus 0.5 percentage point. The second is locality pay, based on Bureau of Labor Statistics comparisons of federal and nonfederal salaries for comparable levels of work in each locality pay area. The Federal Salary Council reviews the data and makes recommendations to the President’s Pay Agent, which consists of the Secretary of Labor and the directors of OMB and OPM.

The statutory formulas do not necessarily become the actual pay increase. Congress may establish a different amount through legislation, and the President may issue an alternative pay plan when economic conditions or a national emergency make the statutory adjustments inappropriate. The final rates are generally implemented by a presidential executive order near the end of the calendar year, after which OPM publishes the official pay tables.

For January 2027, the president announced an alternative pay plan freezing General Schedule base and locality rates at their 2026 levels. Accordingly, most covered federal employees are scheduled to receive no general across-the-board or locality-pay increase for 2027 unless subsequent legislation changes that result. This pay freeze does not prevent an employee from receiving a within-grade increase, promotion, or other individually applicable pay action.

A separate exception is planned for designated federal law enforcement personnel. OPM has been directed to use special salary-rate authority to provide a 3.8% increase for covered positions, with final occupational and agency coverage to be announced in the special-rate tables. Special salary rates are used to address significant recruitment or retention problems and are generally treated as basic pay for purposes such as retirement deductions, overtime and certain percentage-based incentives.

]]>

Cost-of-living adjustments for federal retirees to increase next year

Erich Wagner — Wed, 14 Oct 2026 16:03:23 -0400

Retired federal employees are set to see their defined benefit annuity payments increase in January, though many will still receive what advocates call a “diet COLA.”

The Social Security Administration announced Wednesday that Social Security beneficiaries will receive a 3.6% cost-of-living adjustment next year, an improvement from last year’s 2.8% increase. SSA calculates the increase based on the annual change in the third quarter consumer price index for workers.

Federal retirees in the Civil Service Retirement System will therefore receive a 3.6% increase to their annuities next year, but former feds who are part of the Federal Employees Retirement System, launched in the 1980s alongside 401(k)-style Thrift Savings Plan, will see only a 2.6% adjustment.

That’s because FERS’ annual cost-of-living adjustment is based on an extrapolation of the CSRS and Social Security increase. Each year, if CSRS sees an increase of less than 2%, FERS retirees receives the full COLA. But if the figure falls between 2% and 3%, FERS participants receive only a 2% increase, while if the COLA is 3% or more, like this year, FERS enrollees receive that adjustment, minus 1 percentage point.

Organizations representing federal workers and retirees have argued this is inequitable, and support legislation to standardize the COLA across the FERS and CSRS populations. In addition to having access to the TSP, FERS enrollees also pay into Social Security while they work and may draw upon it when they reach retirement.

“With inflation above 3%, FERS retirees will have their COLAs reduced by an entire percentage point, reducing the real value of their annuities,” said William Shackelford, national president of the National Active and Retired Federal Employees Association. “Inflation impacts these FERS retirees the same way as all other retirees, yet they are forced to accept a diet COLA. The Equal COLA Act would remedy this inequity, providing full COLAs to FERS retirees.”

Despite the pending increase in annuity payments, NARFE warned that the improvement threatens to be swallowed up by further increasing costs next year, namely in the form of double-digit average increases to federal workers and retirees’ health insurance premiums in the Federal Employees Health Benefits and Postal Service Health Benefits programs. Some insurance carriers report that premiums could jump by as much as 100% in January.

“This COLA also does not adequately compensate for the sharp increase in the enrollee share of health insurance premiums affecting the federal community, which will rise by an average of 10.9% next year for federal annuitants, following a 12.3% increase for 2026 and a 13.5% increase for 2025,” Shackelford said. “This comes on top of rising prices for many other goods and services.”

Most current federal employees, conversely, are set to have their pay frozen next year, while some law enforcement officers are slated for a 3.8% average pay increase in January.

]]>

Don’t let 5% become your TSP retirement strategy

Tammy Flanagan — Thu, 08 Oct 2026 15:00:00 -0400

Should you lower your TSP contributions before retirement? A 5% contribution can secure the full FERS agency contribution, but that does not necessarily make it the best choice for employees nearing retirement. Here’s what to weigh before changing your contribution rate, from taxes and cash flow to long-term savings.

TSP considerations when you are near retirement

Today’s column was inspired by a recent email from an employee who is nearing retirement and wants to know some of the pros and cons of reducing her TSP contributions to 5%, which is the amount that is subject to agency matching.

For federal employees covered by the Federal Employees Retirement System (FERS), contributing 5% of basic pay to the Thrift Savings Plan (TSP) generally captures the full agency contribution. The first 3% is matched dollar-for-dollar, and the next 2% is matched at 50 cents on the dollar.

Combined with the Agency Automatic 1% Contribution, an employee who contributes 5% receives agency contributions equal to 5% of basic pay. That makes 5% an important floor, but not necessarily the ideal ceiling.

For an employee who is retiring in late 2026 or spring 2027, the decision to contribute more turns on the balance between current cash needs, taxes and the long-term value of additional retirement savings.

That decision begins with the annual contribution limits. For 2026, the employee elective-deferral limit is $24,500, shared by traditional and Roth employee contributions. Participants who are at least 50 may also make catch-up contributions: up to $8,000 for most eligible participants or $11,250 for those who turn 60, 61, 62 or 63 during 2026. Agency automatic and matching contributions do not count against the $24,500 employee limit.

Because these limits can change from year to year, employees who are not retiring in 2026 should watch for the annual update. The IRS reviews the limits using cost-of-living adjustments tied to the Consumer Price Index (CPI), as required by federal law.

When inflation warrants an increase, the contribution caps rise in statutory increments, such as the $1,000 increase in the elective-deferral limit from 2025 to 2026. The IRS typically announces the following year’s retirement plan adjustments in late October or November. For example, the TSP published its 2026 contribution-limit announcement in mid-November 2025.

The annual limit is only part of the calculation; timing matters as well. To receive a maximum of 5% in agency automatic and matching contributions, you must contribute at least 5% of basic pay each pay period.

If you reach the annual elective-deferral limit early and payroll contributions stop, matching contributions also stop for the remaining pay periods. Employees who want the full-year match should therefore spread their contributions across all pay periods in the year or, if retiring, over all the pay periods leading to their retirement date.

Recent TSP statistics show that nearly nine in 10 contributing FERS participants save at least 5% of basic pay, but the published monthly data do not distinguish between employees contributing exactly 5% and those contributing more.

Learn more about elective deferral limits by reading the TSP fact sheet, “Annual Limit on Elective Deferrals.”

Separate plan-wide data, not limited to FERS employees, show a strong relationship between the length of time participants contribute and the balances they accumulate. As of March 2025, the following balance groups had these average contribution histories:

Limiting contributions to 5% may offer several advantages, especially for employees approaching retirement:

More money in each paycheck. Reducing your contribution rate can free up cash for an emergency fund, debt repayment, relocation, health expenses or the transition from your final paycheck to your first retirement benefit payment. This flexibility may be especially valuable because retirement claims can take time to finalize.
Full agency contributions can continue. Contributing 5% in every pay period generally allows you to receive the full FERS agency contribution while reducing the risk of reaching the annual employee limit before year-end.
Limited short-term effect near retirement. If you plan to retire within a few months, the difference between contributing 5% and a higher rate applies to only a limited number of pay periods. When your retirement savings are already sufficient, using some of that cash for a specific transition expense may be reasonable.

Those benefits, however, must be weighed against the potential costs of limiting contributions to 5% of basic pay:

Use-it-or-lose-it contribution opportunity. Once the calendar year ends, you generally cannot make up unused TSP contribution room for that year. Contributing less now could mean missing the chance to invest thousands of additional dollars in the TSP.
Less time for your savings to grow. Although you may not consider contributions above 5% when you are near retirement very important, remember that contributions made shortly before retirement can remain invested for many years. Contributing less now reduces the amount available for future compounded growth.
A potentially higher tax bill this year. You may not be increasing your take-home pay as much as you think. Traditional TSP contributions reduce your current taxable income. Lowering them may increase your federal and possibly state income tax, particularly during a final high-earning year.
Less tax flexibility in retirement. Roth TSP contributions are made after tax, but qualified withdrawals are tax-free. Reducing Roth contributions may leave you with fewer options for managing taxable income later, especially because Roth TSP balances are not subject to required minimum distributions during your lifetime.
A greater risk of spending instead of saving. Extra take-home pay improves your retirement readiness only if you use it for a specific financial purpose. If you simply spend the difference, you will enter retirement with fewer assets and no offsetting benefit.

How SECURE Act 2.0 changes the calculation

The choice is further impacted by changes enacted under SECURE Act 2.0. For employees making a near-term contribution decision, the most significant change is the mandatory Roth treatment of certain catch-up contributions beginning in 2026.

The rule applies to an employee who is eligible to make catch-up contributions, generally because the employee will be 50 or older in 2026, and who has 2025 FICA wages from the TSP-covered federal employer that exceeded $150,000.

In other words, 2025 wages of $150,000.01 or more trigger the Roth requirement, while wages of exactly $150,000 or less do not. The test uses prior-year wages from the employer sponsoring the plan, not the employee’s 2026 salary, adjusted gross income or total household income.

Only 2026 contributions above the $24,500 regular elective-deferral limit must be Roth; the rule does not require the employee’s first $24,500 of TSP contributions to be Roth. Employees at or below the threshold may generally choose traditional or Roth treatment for catch-up savings. Because the wage threshold is indexed for inflation, it may change in later years.

The law also raised the required minimum distribution (RMD) starting age from 72 to 73 beginning in 2023 and will raise it to 75 in 2033. It also eliminated lifetime RMDs from a participant’s Roth TSP balance beginning in 2024, reduced the excise tax for missed RMDs and created a larger catch-up limit for participants ages 60 through 63 beginning in 2025.

Taken together, these considerations make 5% a useful benchmark rather than a universal recommendation. It is usually the minimum sensible contribution rate for a FERS employee who wants the full match, but it is not automatically the best rate near retirement.

Before reducing contributions, project them by pay date so the 5% election continues through the final pay period, estimate the tax effect of losing traditional deductions and identify a specific purpose for the additional take-home pay.

Employees affected by the Roth catch-up rule should also compare their expected tax rate in 2026 with their likely tax rate in retirement. Because retirement dates, payroll calendars, FICA wages and tax circumstances differ, employees should confirm their election with their payroll office and consult a qualified tax or financial professional before acting.

Checklist for retirement readiness

Use this checklist to test whether your expected retirement income can support your desired lifestyle, withstand unexpected costs and remain sustainable over a long retirement.

First things first, confirm your retirement eligibility:

Confirm that you meet the age and service requirements for an immediate FERS retirement.
Verify your service computation date and resolve any missing or incorrect service records.
Determine whether you have any outstanding military or temporary civilian service deposits and compare your retirement estimate with and without making these payments.
Compare estimates for two different retirement dates to determine the impact on your monthly income from the FERS basic retirement benefit, Social Security or the FERS Supplement and potential income from your TSP investment.
If retiring under the MRA + 10 provisions, consider the benefit of working longer to avoid the age reduction vs. postponing your retirement application.
If retiring under age 62, compare the benefit of the enhanced annuity calculation factor of 1.1% instead of 1.0% if you will have 20 or more years of service by age 62.

Compute your “net” retirement income:

Obtain an official or agency-prepared estimate of your gross FERS annuity, including the FERS retirement supplement, if eligible.
Be sure to estimate reductions to your FERS retirement benefit that may include:
- Survivor benefit elections for a current spouse
- Court-ordered survivor benefit requirements for a former spouse
- Part-time work schedule proration
- Alternative annuity actuarial reduction
- Offset for Social Security (CSRS Offset coverage only)
- Unpaid deposits or redeposits (CSRS only)
Service not covered by retirement deductions is not creditable under FERS; compute retirement estimates without service where retirement deductions were not withheld or deposited. Noncovered civilian service performed after 1988 is not creditable and not eligible for a service credit deposit.
Estimate withholdings from your monthly benefit that may include:
- Federal income tax
- State income tax
- Insurance premiums (FEHB, FEGLI, FEDVIP, FLTCIP)
- Court-ordered apportionment payable to a former spouse
Review your Social Security estimate at several claiming ages, including at age 62, your full retirement age (67 if born in 1960 or later) and age 70.
If retiring at 65 or later, consider the cost of Medicare Part B premiums.
Estimate income from your TSP, IRAs, spouse benefits, pensions, part-time work and other sources.
Calculate expected after-tax monthly income rather than relying on gross amounts.
Identify which income sources are guaranteed and which depend on investment performance.
Identify which income sources will receive cost-of-living adjustments and when they are applicable to help maintain buying power in the future.

Cash reserves and retirement spending plan

Build a retirement budget that separates essential expenses from discretionary spending.
Compare the estimated net income you will have in retirement to your current net income while employed.
Account for irregular expenses and inflation rather than using current monthly bills alone.
Compare projected income with projected spending and calculate the annual amount your savings must provide.
Maintain an accessible emergency reserve so you are not forced to sell investments during a market decline.
Try living on your projected retirement income for several months before retiring if you expect to have less net income in retirement.

TSP and investment strategy

Confirm that your contribution rate captures the full agency match through your final eligible pay period.
Estimate your TSP balance at retirement under conservative, expected and unfavorable market scenarios.
Decide how much you expect to withdraw in the first year and whether that amount is sustainable.
Review your traditional and Roth balances and the tax treatment of future withdrawals.
Check whether your investment allocation matches your time horizon, income needs and tolerance for market declines.
Understand the differences among installments, partial withdrawals, rollovers and a TSP annuity before choosing a distribution method.
Include outstanding TSP loans in your retirement plan and understand the consequences of separation from service.

Consider your health, insurance needs and long-term risks to your financial security:

Verify eligibility to continue Federal Employees Health Benefits coverage into retirement.
Consider coordination of FEHB coverage with Medicare Parts A and B when you become eligible.
Review Federal Employees’ Group Life Insurance choices and the cost of coverage as you age.
Consider how you would pay for long-term care, extended home assistance or assisted living.
Test whether your plan can withstand higher medical costs, a long life and several years of elevated inflation.

Taxes, debt and survivor planning

Estimate federal and state taxes on your annuity, Social Security, traditional TSP withdrawals and other income.
Evaluate whether Roth withdrawals or conversions could improve future tax flexibility.
Decide how mortgages, consumer debt and other obligations will be handled before and after retirement.
Compare FERS survivor annuity options and their effect on your monthly benefit and a spouse’s future financial security and continued FEHB eligibility.
Review beneficiary designations for the TSP, Federal Employees’ Group Life Insurance, unpaid compensation and retirement (FERS or CSRS).
Update your will, powers of attorney, health care directives and instructions for locating important records.

Test your retirement readiness

Your projected after-tax income covers essential and discretionary spending with a reasonable margin.
Your plan remains workable if markets decline early in retirement, inflation is higher than expected or you live longer than expected.
You have enough accessible cash for emergencies and the possible delay between your final paycheck and finalized annuity payments.
You and your spouse or partner understand income, insurance, survivor and withdrawal decisions.
You have reviewed the plan with your agency’s retirement specialist and, when appropriate, a qualified tax or financial professional.

Readiness benchmark: A specific TSP balance alone does not establish readiness. A stronger test is whether dependable and investment income can cover expected after-tax expenses, preserve an emergency reserve and remain sustainable under less favorable assumptions.

]]>

Federal employees’ health insurance premiums to rise by double digits for third straight year

Erich Wagner — Fri, 02 Oct 2026 14:38:10 -0400

This story has been updated Oct. 3 at 11:26 a.m.

Federal employees and retirees will pay an additional 10.9% on average toward their health insurance premiums in 2026, the third straight year of double-digit increases, according to the Office of Personnel Management.

The government’s share of Federal Employee Health Benefits Program premiums will increase by an average of 8.6% in 2026, making the overall cost increase 9.3%. This year, the increase in employees’ share of insurance premiums was 12.3%, and in 2025 that increase apexed at 13.5%.

On average, feds in “self only” plans will pay an additional 13.37 per biweekly pay period, and employees enrolled in “self plus one” coverage will see their premiums rise by an average of $33.87 per pay period. Federal workers in family plans will pay $40.25 on average more on a biweekly basis next year.

For enrollees in the nascent Postal Service Health Benefits Program, premiums are expected to rise 8.2% on average, while the government’s contribution towards those benefits will increase 6.0%. In 2026, postal employees and annuitants saw their share of premiums increase by an average of 9%.

Postal workers enrolled in “self only” coverage will pay $9.86 more on average per biweekly pay period, while those with “self plus one” plans will pay an additional $24.71. PSHB enrollees in family plans will see premiums rise by $23.96 on average per pay period.

The Federal Employee Dental and Vision Insurance Program will see average premium increases of 1% for dental and 1.6% for vision next year.

In a press release announcing Open Season, which will run from Nov. 9 through Dec. 14, OPM highlighted that premium growth has “slowed” for the second straight year. Officials attributed premium increases to industry-wide cost increases, increased use of behaviorial and mental health, and the ballooning adoption of GLP-1 drugs for weight loss.

“For the second year in a row, OPM has been able to reduce the average rate of premium increases for federal employees and annuitants,” said Matthew Kiley, the agency’s associate director for health care and insurance. “This is just the start of a more comprehensive set of programs to ensure that we deliver great health plan options to our enrollees while preventing them from getting priced out of the market.”

A new requirement beginning with this fall’s Open Season is that when a federal worker or annuitant adds a new family member to their insurance coverage, they must submit supporting documentation to verify their eligibility, part of OPM’s implementation of the 2025 FEHB Protection Act. And beginning next year, the government will require employees seeking a prescription for a GLP-1 drug to undergo “12-22 intensive behavioral therapy sessions per year” prior and during treatment.

As in past years, OPM encouraged federal workers to shop around from among the more than 100 insurance plan offerings and to take advantage of using pre-tax money to pay for out-of-pocket costs via a flexible spending account. New for next year is the availability of a debit card via FSAFEDS, reducing some of the administrative burden of needing to submit paperwork and receipts for reimbursement.

Kevin Moss, a senior editor with Consumers’ Checkbook’s Guide to Health Plans for Federal Employees, said it is more important than ever to actually follow that advice. That’s because hidden behind the average premium increase figures are a number of wide swings on the individual plan level.

For instance, premium increases for the largest insurer, Blue Cross Blue Shield, are below the 10.9% average. But the cost for MHBP, which itself was a haven for many feds when Blue Cross had higher premium increases during last year’s Open Season, will increase 63% for self plans, 83% for family plans, and 105% for self-plus-one coverage.

“You know, very few people actually switch plans from one year to the next—it’s only like 5%,” Moss said. “If there’s any upside here—and overall, I think there isn’t because a double-digit increase is tough to take—it’s that sometimes it takes something negative to motivate people to do the thing they should have done every year. Take a look at the plan, the benefits you plan to use, and see if it all fits your needs, while doing research to see if there’s another plan that could offer a better value.”

Organizations representing federal employees and retirees said the news from OPM underscore the need for Congress to override President Trump’s plan to freeze most federal workers’ pay next year.

“Federal employees are already being squeezed by rising costs and are now facing a double-digit increase in what they pay for health insurance,” said Doreen Greenwald, national president of the National Treasury Employees Union. “A 10.9% increase in health insurance premiums makes the proposed pay freeze even more unacceptable. Federal employees cannot afford to keep paying more while their paychecks fall further behind. Congress must reject the pay freeze and deliver a meaningful pay raise in 2027.”

“Federal employees have often chosen the call of public service over the prospect of financial reward offered in the private sector,” said Bill Shackelford, president of the National Active and Retired Federal Employees Association. “But the commitment to service does not eliminate the need for a decent-paying job sufficient to cover rising costs for yourself and your family. I worry how the cumulative impact of rising costs and damaging workforce policies will impact the ability to recruit and retain the workforce needed to meet the nation’s needs and serve the public interest.”

This story has been updated to include additional information from OPM detailing average premium increases on a biweekly basis.

]]>

TSP funds were back in the negative in September

Erich Wagner — Thu, 01 Oct 2026 15:35:16 -0400

Nearly all of the portfolios in the federal government’s 401(k)-style retirement savings program lost value last month, as the broader investment market encountered broad volatility.

The small- and mid-size businesses in the Thrift Savings Plan’s S Fund saw the worst decline, falling 3.86% in September. Since January, the S Fund is up 11.62%. The C Fund’s common stocks nearly broke even, finishing the month just 0.35% in the red. So far this year, the C Fund has grown 12.73%.

The fixed income (F) fund fell 2.59%, bringing its 2026 performance to 2.75% in the negative. And the international investments of the I Fund dropped 2.30% in September, bringing its gains since January down to 16.45%.

The only TSP fund to post gains was the government securities of the G Fund, which grew at a statutorily mandated rate of 0.40%. So far this year, the G Fund has grown 3.41%.

Each of the TSP’s lifecycle funds, which shift toward more conservative investments as participants get closer to retirement, similarly lost ground last month. The L Income Fund, designed for those who have already begun making withdrawals, fell 0.28%; L 2030, 0.78%; L 2035, 1.02%; L 2040, 1.15%; L 2045, 1.25%; L 2050, 1.34%; L 2055, 1.48%; L 2060, 1.48%; L 2065, 1.48%; L 2070, 1.49%; and L 2075, 1.49%.

Since January, the L Income Fund has grown 6.04%; L 2030, 8.92%; L 2035, 10.02%; L 2040, 10.59%; L 2045, 11.09%; L 2050, 11.62%; L 2055, 13.86%; L 2060, 13.86%; L 2065, 13.85%; L 2070, 13.85%; and L 2075, 13.85%.

]]>

Retiring in 2027? Picking the right date could pay off

Tammy Flanagan — Thu, 01 Oct 2026 15:00:00 -0400

Download the 2027 Best Dates to Retire Calendar

If you’re thinking about retiring from federal service in 2027, you’ve probably spent plenty of time figuring out when you’ll be eligible and whether you’ll have enough money to make the jump. But there’s one more decision worth giving some thought to: exactly when to walk out the door.

Picking a retirement date isn’t just about choosing a Friday that feels right. The date you choose can affect when your retirement annuity begins, how much you receive in your lump-sum payment for unused annual leave and how much of that leave you’re able to cash out at your current salary rate.

There are some dates that are especially attractive for federal employees, depending on whether you’re covered by FERS, CSRS or CSRS Offset. The timing of the end of a pay period, the end of the month and the end of the leave year can all come into play. And because those calendars don’t always line up neatly, choosing a retirement date can be a little more complicated than it might seem.

For example, a FERS employee generally wants to retire at the end of a month if they want their annuity to begin as soon as possible. But the rules governing the payment of unused annual leave can make the end of the leave year especially important, too. For CSRS employees, some of the timing rules are different.

That means there isn’t necessarily one magic retirement date that works for everyone. The best date depends on your retirement system, your leave balance and what you’re trying to maximize.

As we do every year, we’ve gone through the 2027 calendar to identify the dates that can give retiring federal employees the best financial advantages. Here's our annual "Best Dates to Retire" calendar to help you plan for retirement in 2027.

]]>

Your federal benefits changed this year. Here’s what to know

Tammy Flanagan — Thu, 24 Sep 2026 15:00:00 -0400

What changed in your federal benefits in 2026 — and what could change next? Agencies updated federal retirement, insurance, Social Security and Thrift Savings Plan programs, while Congress considered proposals affecting future pay and benefits. This article summarizes the changes that took place in 2026 along with the links to official sources.

Review the 2026 changes now and watch for 2027 updates this fall. During Federal Benefits Open Season, OPM will soon begin to publish 2027 plans, premiums and coverage information. The September CPI release on Oct. 14, 2026, will provide the final CPI-W data used to determine 2027 Social Security and federal retirement COLAs.

Legislative watch: enacted changes and congressional proposals

Status as of Sept. 24, 2026: A proposal changes benefits only after both chambers pass identical text and the president signs it. The section below separates current-law changes from selected 119th Congress proposals.

How likely is enactment? Remember that most proposals do not become law. By September 2026, 112 of the 18,956 measures in the 119th Congress had become stand-alone laws; 431, or only about 2%, had been enacted alone or through another measure. Bills often stall in committee, lose floor time, face policy or budget objections, fail to clear Senate procedures or expire before both chambers agree.

H.R. 8364 has advanced the furthest among the proposals below because it passed the House. These are not bill-specific forecasts.

Track a bill: Search its number on Congress.gov, then review “Latest Action,” committees, text and related bills. Cosponsors show support; committee action or chamber passage shows more meaningful progress.

Other resources: Membership associations, unions and nonpartisan public-interest organizations may provide education and legislative updates. Compare their information with official OPM, SSA, TSP and Congress.gov sources. Examples: NARFE serves active and retired federal employees; AFGE and NTEU serve represented employees; FMA serves eligible managers, supervisors, executives and retirees; and NAPS serves eligible Postal Service supervisors, managers and postmasters. Eligibility, dues, services and viewpoints vary.

Federal employee pay for 2027

Administration plan: The Aug. 26 alternative pay plan would keep most 2027 General Schedule base and locality rates at 2026 levels. OPM is developing a 3.8% special-rate increase for covered law-enforcement personnel, tentatively effective Jan. 10, 2027; final coverage is still pending. OPM pay information.
FAIR Act (H.R. 7480/S. 3823): Would raise statutory basic and prevailing-rate pay 3.1% and locality pay 1% for 2027 — an average 4.1%, according to sponsors. Both bills remain in committee. House bill; Senate bill.

Federal retirement benefits

No broad 2026 FERS reduction: House-passed 2025 proposals, including elimination of the FERS annuity supplement for many future retirees, were not included in the enacted law. C
Equal COLA Act (H.R. 491/S. 624): Would give eligible FERS annuitants the full CSRS/Social Security COLA formula. Both bills remain in committee and neither has passed a chamber.
Federal Retirement Fairness Act (H.R. 1522): Would allow certain post-1988 temporary service to count under FERS after a deposit. Introduced Feb. 24, 2025, it remains in House committee.
Targeted proposals: H.R. 8364, allowing a Capitol Police retirement age of 57-65, passed the House April 27, 2026, and awaits Senate action. H.R. 10283, limiting retirement credit for certain Members, remains in House committees. Neither affects the general workforce.

Federal insurance benefits

No broad 2026 FEHB, PSHB, FEGLI or FEDVIP benefit law identified: The 2026 premium and plan-option changes described below are annual program changes, not newly enacted benefit statutes.
FEHB Protection Act (H.R. 2193): Would require OPM to verify qualifying life events and family-member eligibility when dependents are added to FEHB or PSHB coverage and to include ineligible enrollment in fraud-risk reviews. The House committee ordered the bill reported, but it has not become law.

Social Security retirement and survivor benefits

Current-law changes affecting 2026 payments: The 2.8% COLA, higher taxable maximum and revised earnings-test thresholds took effect automatically under existing law; they were not created by a new 2026 act of Congress. The most recent major statutory benefit change remains the Social Security Fairness Act, enacted Jan. 5, 2025, which repealed the Windfall Elimination Provision and Government Pension Offset for benefits payable after December 2023.
Social Security 2100 Act (H.R. 9519/S. 5042): Would temporarily raise benefits, revise COLAs and minimum and survivor benefits, add caregiver credits and increase revenue. Both 2026 bills remain in committee. House bill; Senate bill.
Senior Citizens’ Freedom to Work Act (H.R. 8344): Would repeal the Social Security retirement earnings test, which currently withholds some benefits when a beneficiary below full retirement age has earnings above the annual limit. Read the bill.
Other proposals: H.R. 1700 and S. 3462 would raise benefits, change the COLA measure and tax higher earnings. Both remain in committee, and neither has passed a chamber.

Medicare

Current-law changes effective in 2026: Under the Inflation Reduction Act, negotiated prices took effect for the first 10 selected high-spending Medicare drugs, and the Part D annual out-of-pocket threshold rose to $2,100 after inflation adjustment.
Medicare Advantage Improvement Act of 2026 (S. 4384): Would shorten certain prior-authorization decision timeframes and make other Medicare Advantage reforms. Introduced April 27, 2026, it remains referred to the Senate Finance Committee.
Commission on Sustaining Medicare and Social Security Act (H.R. 9089): Would establish a commission to recommend options on solvency, premiums, fraud and program integrity. Introduced June 2, 2026, it remains in House committees.

Thrift Savings Plan

SECURE 2.0 rules effective in 2026: Under legislation enacted in 2022, catch-up contributions must be Roth for participants whose prior-year wages from the plan sponsor exceeded $150,000, and participants ages 60 through 63 retain the higher $11,250 catch-up limit. The regular 2026 TSP deferral limit is $24,500 and the general age-50 catch-up limit is $8,000.
TSP Modernization Act (H.R. 9214): Would require permitted transfers from TSP accounts to qualified retirement plans at brokerage firms to be available electronically. The bill was introduced June 9, 2026, and remains referred to the House Committee on Oversight and Government Reform; it has not become law.
TSP Fiduciary Security Act (H.R. 7357): Would add a national-security consideration to TSP fiduciary duties and require a compliance review.
Emergency withdrawals: S. 2966/H.R. 5674 would waive the 10% additional tax on up to $30,000 during a shutdown; H.R. 6929 would allow certain separated employees up to $100,000 in penalty-free distributions. All remain in committee.
FORWARD Act (H.R. 4996): Would allow certain retired or totally disabled former uniformed-service members with an existing TSP account to continue contributing from retired pay or disability compensation, without agency matching.

The proposals above may shape future policy, but the sections below focus on changes already affecting employees, annuitants, survivors and TSP participants in 2026. Each section links directly to the agency responsible for administering the program.

Recent OPM updates

2026 retiree COLAs: Eligible Civil Service Retirement System annuitants receive a 2.8% increase, while eligible Federal Employees Retirement System annuitants receive 2.0%. The adjustment took effect Dec. 1, 2025, and was reflected in January 2026 payments. A first COLA may be prorated. FERS COLAs generally do not apply before age 62, subject to statutory exceptions, and do not increase the FERS annuity supplement.
Federal Workforce Data site: In January 2026, OPM launched the redesigned Federal Workforce Data site to replace FedScope. The separate data site offers interactive visuals, downloadable datasets, monthly updates and expanded workforce information; it was not a redesign of the entire OPM.gov website.
CHCO Council memoranda: On Aug. 28, 2025, OPM moved Chief Human Capital Officers Council memoranda directly onto OPM.gov. The change organizes agency guidance alongside other OPM resources, making policy updates easier to find and access.
Online retirement processing: OPM’s digital Online Retirement Application provides pre-filled information, annuity estimates, document uploads, completeness checks and status tracking. Contact your agency HR office to begin; OPM assists after receiving the case and assigning a CSA claim number.
August 2026 processing: OPM received 7,618 claims, processed 15,281 and ended with 15,427 pending. Average processing time was 70 days for digital claims, 150 for paper and 79 overall.
Reemployed annuitants: OPM issued new decision tables on March 24, 2026, to help agencies determine CSRS/FERS retirement coverage and the treatment of FEHB and FEGLI benefits when an annuitant is reemployed, separates or dies during reemployment.
2026 coverage: OPM offered 132 FEHB, 75 PSHB, 21 FEDVIP dental and 10 vision options. Average enrollee premiums rose 12.3% for FEHB, 11.3% for PSHB, 3.35% for dental and 0.47% for vision.

Recent Social Security updates

2026 benefit increase: Social Security retirement and survivor benefits increased 2.8% for 2026. SSA estimates the average retired-worker benefit at $2,071 per month and the average benefit for an aged widow or widower living alone at $1,919 per month after the increase.
Working while receiving benefits: The 2026 earnings limit is $24,480 before full retirement age, with $1 withheld for every $2 above it. In the year full retirement age is reached, the pre-birthday-month limit is $65,160, with $1 withheld for every $3 above it. No limit applies afterward.
Survivor eligibility: A surviving spouse may qualify at 60, at 50 if disabled or at any age while caring for the deceased worker’s child under 16 or with a disability. Eligible divorced spouses may also qualify. Benefits generally range from 71.5% to 100% based on claiming age.
Applying: Survivor benefits cannot currently be requested online; call 1-800-772-1213. If both retirement and survivor benefits apply, SSA generally pays the higher amount rather than adding them together.

Recent Medicare updates

2026 Parts A and B costs: The standard Part B premium is $202.90 per month. The Part A inpatient deductible is $1,736 per benefit period; most beneficiaries continue to receive premium-free Part A.
Part D prescription costs: The annual out-of-pocket threshold is $2,100 in 2026. Negotiated prices for the first 10 selected drugs also took effect Jan. 1, 2026, alongside updated Part D plan, manufacturer and Medicare payment responsibilities.

Recent Thrift Savings Plan updates

Refreshed TSP website: It is now easier to find what you need on tsp.gov. The redesigned site helps you quickly check contribution and withdrawal information, compare funds, find guidance for major life events, use forms and calculators and get help with My Account.
Death reporting: Anyone may report a participant’s death, although an agency reports an active employee’s death. The secure Life Events Hub accepts documents and provides updates. Gather identifying, marital and employment information plus a legible certified death certificate; foreign certificates may require English translation. Reports may also be made through the ThriftLine at 1-877-968-3778, by mail or by fax.
My Account has a new address: TSP says the new sign-in address is tsp.gov/login and advises participants to update saved bookmarks. Sign in at the new My Account address.
2026 limits: The elective-deferral limit is $24,500. Catch-up limits are $8,000 for ages 50-59 and 64+, and $11,250 for ages 60-63.
Roth catch-up rule clarification: Beginning in 2026, catch-up contributions must be Roth for participants whose prior-year FICA wages from their TSP-contributing employer exceeded $150,000. TSP updated its agency guidance in June 2026 to specify that, beginning in 2027, payroll offices should use Box 3 of Form W-2 to determine prior-year FICA wages for this rule.
Roth conversions: Eligible participants and spousal beneficiaries may convert traditional TSP money to Roth in My Account. The minimum is $500, with up to 26 conversions per account annually; conversions are irrevocable and generally taxable that year

Summary

In 2026, key developments included retirement and Social Security COLAs, digital retirement processing, insurance changes, updated TSP limits and Roth rules and new online tools. Pending bills could affect future pay and benefits, but current benefits change only when a proposal becomes law.

To prepare for retirement, review benefit statements, beneficiaries, insurance, Social Security estimates and TSP elections regularly. Watch Open Season, COLA, pay and legislative announcements, and confirm decisions with the administering agency. Acting early can make the transition smoother and protect future income, coverage and survivors.

Beginning next month and through the end of this year, get ready for the announcements of the 2027 updates for Social Security, Medicare, health insurance, TSP and your retirement.

]]>

Lawmakers call on leadership to override Trump’s planned pay freeze

Erich Wagner — Mon, 21 Sep 2026 17:56:57 -0400

More than 100 members of Congress urged House and Senate leaders last week to advance legislation rejecting President Trump’s planned pay freeze for most civilian federal workers next year.

Last month, Trump issued his alternative pay plan, which formally confirmed the White House’s proposal to freeze most civilian workers’ pay at 2026 levels. Trump separately instructed the Office of Personnel Management to prepare to issue a 3.8% raise to federal law enforcement officers, and he has proposed pay increases between 5% and 7% for military service members, depending on their rank.

In a letter to House Speaker Mike Johnson, Minority Leader Hakeem Jeffries, Senate Majority Leader John Thune and Minority Leader Chuck Schumer, sent last week but published Monday, a bipartisan group of 110 lawmakers led by Rep. James Walkishaw, D-Va., and Sen. Chris Van Hollen, D-Md., warned that with inflation hovering over 3%, forcing federal workers to forgo a pay raise is “an effective pay cut.”

“The administration’s own proposal on federal pay increases demonstrates why such an increase is necessary,” they wrote. “President Trump has proposed that federal law enforcement personnel receive a 3.8% pay increase to improve recruitment and retention, and has proposed a 5-7% pay increase for service members given the critical support they provide our nation. The same rationale applies to all federal workers.”

The lawmakers said that a pay freeze risks exacerbating staffing shortages across government, including at the Veterans Affairs Department, Social Security Administration and the Food and Drug Administration. Unions and other federal employee organizations have similarly warned that a pay freeze would ultimately impact public service.

The letter cited Congress’ actions in early 2019 to override President Trump’s pay freeze for that year, implemented during the 35-day government shutdown, then instituting a 1.9% average pay increase retroactive to the beginning of that year. Lawmakers called on leadership to advance legislation that would “at minimum” reinstitute pay parity within the civilian federal workforce, extending the 3.8% raise to all feds.

“We strongly believe, however, that Congress should go further and provide the 4.1% increase called for in the [Fair Adjustment of Income Rates] Act, which would help federal pay keep pace with rising costs while ensuring the government can continue to attract and retain the workforce necessary to serve the American people,” they wrote.

When Congress has acted to codify federal employees’ annual pay increase in the past, it has traditionally done so through appropriations legislation. With the enactment last month of a continuing resolution keeping the government open until December, any action on this issue is unlikely prior to November’s midterm elections.

]]>

Navigating the Pay.gov maze for federal retirement deposits

Tammy Flanagan — Thu, 17 Sep 2026 15:00:00 -0400

Creditable Federal civilian and military service affects both retirement eligibility and the CSRS or FERS monthly annuity, which generally uses the employee’s high-3 average salary, the applicable formula and creditable service. Unpaid deposits and redeposits are treated differently by system, service type and date: some service is excluded, while some remains creditable with an annuity reduction. Employees should review their records early and ask their agency benefits office whether payment is required. The following examples show the difference a deposit can make when the service is not creditable without the payment.

Assumptions and limitations: These examples use an $80,000 high-3, whole years and regular FERS rules. The 1.1% factor applies only at age 62 or older with at least 20 years. Amounts are gross estimates, rounded monthly and exclude special-category rules, partial months, survivor elections, taxes, insurance, court orders and other adjustments. Agency estimates are planning tools; OPM determines the final benefit.

Comparable CSRS example: For a regular CSRS employee with the same $80,000 high-3, the general formula is 1.5% for the first 5 years, 1.75% for the next 5 and 2% thereafter. At 28 years, the estimated annuity is $42,800 annually, or about $3,567 monthly. At 30 years, it is $46,000 annually, or about $3,833 monthly, about $267 more. The estimate excludes special-category rules, deductions, partial months and the CSRS maximum-annuity rule.

What you can pay through Pay.gov

Federal employees and retirees may owe OPM for service credit, insurance premiums or other benefit debts. Pay.gov, the Treasury Department’s secure payment service, eliminates mailing time, guides users through required information and provides an electronic submission record. OPM processing and account-posting times still apply.

A deposit pays for eligible service during which retirement deductions were not withheld; a redeposit repays retirement deductions that were previously withheld and later refunded. Employees should work through their agency benefits office and wait for OPM’s billing information. The active-employee Pay.gov form requires the seven-digit CSD number shown on the statement received from OPM (form RI 36-23).

Important FERS limitation: Civilian service that was not covered by FERS deductions performed on or after Jan. 1, 1989, is not creditable, and an employee cannot make a deposit to obtain credit for that service. Employees should ask their agency benefits office to determine service subject to a service credit deposit to be creditable for retirement eligibility and/or computation.

Annuitants use a separate service-credit form requiring a CSA or CSF claim number. Pay.gov also serves OPM retirees whose annuity cannot cover FEGLI premiums and provides forms for voluntary contributions and certain debts or underpaid benefits. Select the form that exactly matches the obligation.

If your CSRS or FERS annuity is too small to pay your health or life insurance premiums, you can pay your premiums directly to OPM. You shouldn't send any payment until OPM contacts you with instructions on how to pay your premiums to OPM.

Voluntary contributions for CSRS and CSRS Offset employees

Only employees currently covered by CSRS (including CSRS Offset) or separated employees whose application for retirement under CSRS is currently being processed by OPM are eligible to apply or make Voluntary Contributions. Applicants must first pay any required CSRS civilian-service deposit or redeposit, submit SF 2804 through their agency or directly to OPM with their retirement application, and wait for OPM to approve the application and establish the account. “After-tax” contributions are made in $25 multiples and cannot exceed 10 percent of aggregate basic pay for creditable civilian service.

After OPM approves the application and supplies a valid voluntary-contribution account number, employees may use the designated Pay.gov form. A retiring CSRS or CSRS Offset employee may continue making contributions while OPM finalizes the retirement claim, provided OPM continues to accept the payments; contributions must stop when the claim is finalized. Retain each submission confirmation and verify that OPM credited the payment. The account earns interest at rates prescribed by law. At retirement, the balance may purchase an additional CSRS annuity, including an optional survivor feature, or be refunded under applicable rules. The additional annuity does not receive cost-of-living adjustments; compare it with refund and permitted rollover options.

Military service deposits: Who can use Pay.gov

A military service deposit may provide retirement credit for eligible post-1956 active-duty service that ended under honorable conditions. CSRS, CSRS Offset and FERS employees should provide service and estimated-earnings records to their agency and servicing payroll provider. The deposit must be paid to the employing agency before separation, and interest can increase the cost after the initial two-year interest-free grace period for new hires.

Pay.gov is available only when the servicing payroll provider offers a military-deposit form and issues the required billing information. DFAS- and Interior Business Center-serviced employees may use their provider’s form when instructed. Do not choose a form simply because it appears in a search; it must match the payroll provider and notice.

Most employees pay military deposits through their payroll deduction, permitted installments or personal check. Use only provider instructions, monitor the balance and retain records until receiving paid-in-full confirmation.

Peace Corps service credit deposits

Former Peace Corps volunteers and volunteer leaders may receive retirement credit for satisfactory full-time service; pre-enrollment training is excluded. Under FERS, the service is creditable only if the required deposit is paid. Under CSRS and the CSRS component of a FERS transfer annuity, the effect of nonpayment depends on the applicable service dates and deposit rules, so employees should request an individual determination from their agency benefits office — with all rules taken into consideration.

The deposit is based on the qualifying readjustment allowance or stipend, plus interest—not later Federal salary. Obtain Peace Corps certification and submit SF 2803 for CSRS or CSRS Offset, or SF 3108 for FERS, through the agency benefits office. Do not estimate or pay until the agency and OPM determine creditability and issue the amount due.

After OPM establishes the account, a current employee may use the active-employee Pay.gov form with the seven-digit CSD number on RI 36-23; annuitants use the separate form with a CSA or CSF claim number. Retain confirmation, verify posting, and obtain paid-in-full documentation.

Before you begin

Begin at OPM’s How to Make a Payment page and select the exact obligation. Have the OPM notice, account or claim number, amount, identifying information and payment details ready. Accepted bank or card options vary by form.

Why the online process is more efficient

Pay.gov eliminates postage and delivery uncertainty, prompts for required information, allows review before submission, and creates immediate confirmation. It does not eliminate OPM processing time, so users must verify that the payment posts to the correct account.

Protect your information and follow up

Use a trusted device and private network, confirm the .gov address, and never email bank or claim data. Avoid duplicate payments while posting is pending. If rejected or returned, verify the information and contact the office named on the OPM notice before retrying.

Pay.gov makes retirement and insurance payments easier to submit and document. Start with OPM’s official payment page, choose the exact form, use the identifiers on OPM correspondence, review the entry, save confirmation and verify posting.

]]>

Lawmakers again raise alarm over OPM’s health records collection plan

Erich Wagner — Wed, 16 Sep 2026 18:14:20 -0400

Senate Democrats again urged the Trump administration Wednesday to abandon its plans to collect detailed health information from federal workers, retirees and their families, saying recent tweaks to “de-identify” records are insufficient to protect employees’ privacy.

Last December, the Office of Personnel Management published an information collection request in the Federal Register that would require insurers who participate in the Federal Employees Health Benefits and Postal Service Health Benefits programs to provide monthly reports with identifiable health data on their enrollees.

Following pushback from federal employee groups and medical ethicists, OPM in June revised its proposal, purporting to take steps to mask employees and retirees’ identities in the data collection. But organizations that represent federal workers and retirees warned that the agency still hadn’t done enough to protect patients’ privacy.

In a letter to OPM Director Scott Kupor, a group of six Senate Democrats, led by Sens. Adam Schiff, D-Calif., and Mark Warner, D-Va., who previously requested the proposal’s withdrawal, wrote that the proposed pseudonymization of records does not their “fundamental” concerns with the plan, particularly the agency’s insistence that it may re-identify insurance claimants in the future.

“In the case of OPM’s recent [systems of records notice], a stable identifier permits repeated encounters to be linked over time, utilizing ZIP code, birth year, provider, service dates, diagnoses, procedures and drug information to reveal highly specific patterns of care,” they wrote. “OPM itself maintains the mechanism needed to reconnect the pseudonymized history to the individual, negating any intended anonymization of data.”

Another concern of the senators is that under the proposal, OPM would retain these records for 30 years, which they said “materially increases” the chance either for misuse from within the government or a security breach by outside actors. And they argued OPM should not have access to health information about retirees, spouses and other family members covered under FEHBP and PSHBP.

“OPM’s proposal covers not only federal employees but also annuitants, spouse, former spouses, family members, Postal Service employees and their families, certain tribal employees, separated employees and former family members,” the lawmakers wrote. “Many of these individuals are not federal employees and have no employment relationship with OPM. Young-adult dependents may receive reproductive, sexual-health, mental-health, substance-use or other sensitive services that should not be accessible to the federal government, regardless of their family member’s FEHB coverage.”

The letter comes shortly after Federal News Network reported that the Defense Department has begun trawling the records of service members in an effort to identify and remove trans people from the military.

The lawmakers demanded that OPM suspend implementation of its data collection plan and publish a “field-by-field necessity analysis” justifying the statutory purpose for collecting each type of data, as well as institute a series of safeguards aimed at protecting employees’ privacy and limit data-sharing.

“We support responsible efforts to protect the integrity of federal health-benefit programs,” they wrote. “However, OPM’s proposals create an unnecessarily broad, decades-long, re-identifiable medical history of millions of workers, retirees, spouses, children, and other family members. We strongly urge OPM to suspend further implementation while these concerns are addressed and to work with Congress, federal employees and retirees, health plans, privacy and civil-rights experts, reproductive-health advocates, and other affected stakeholders to establish safeguards commensurate with the sensitivity of the information at issue.”

]]>

What 9/11 can teach federal families about benefits

Tammy Flanagan — Thu, 10 Sep 2026 15:00:00 -0400

Every year, the anniversary of Sept. 11, 2001, brings back the same difficult truth: federal service is not always performed behind a desk, and risk does not always announce itself in advance. Sixty-nine federal employees were among those who died that day — including 62 at the Pentagon, three at the World Trade Center, three aboard Flight 93, one aboard Flight 77 at the Pentagon and one aboard Flight 175 at the World Trade Center. Many more reported for duty afterward to secure facilities, investigate the attacks, transport people, provide emergency assistance and help the country recover.

For their families, the lesson is not only one of remembrance. It is also a benefits lesson. If a civilian federal employee is injured, develops an occupational illness or dies because of federal employment, the Federal Employees’ Compensation Act may provide important protection.

FECA is the federal government’s workers’ compensation program for civilian employees, administered by the Labor Department’s Office of Workers’ Compensation Programs. It can pay for medical treatment, replace part of lost wages, provide compensation for permanent impairment and, in fatal cases, provide benefits to eligible survivors.

This is where many employees and families get into trouble: They know there are “benefits,” but they do not know which benefit applies, who administers it or what evidence is needed. A traumatic injury is generally tied to a specific incident during one workday or shift and is reported on Form CA-1. An occupational disease or illness develops over more than one workday or shift and is reported on Form CA-2. Wage-loss compensation is generally claimed separately, often with Form CA-7.

These distinctions are more than paperwork. They affect deadlines, agency responsibilities, medical documentation and how the claim is developed.

For survivors, FECA death benefits can be a critical source of financial protection. If the employee’s death was caused by a work-related injury or occupational illness, eligible dependents may receive recurring compensation based on the employee’s pay, subject to limits under the law. A surviving spouse may qualify. Eligible children may be included. In some situations, other dependent relatives may have rights as well.

FECA may also help with funeral and burial expenses and transportation of remains when applicable. But these benefits are not automatic just because the person worked for the federal government. The claim must show that the death was causally related to federal employment.

That means survivors need records. A surviving spouse or eligible children generally use Form CA-5 to claim compensation. Other dependent relatives may use Form CA-5b.

The file may need a death certificate, medical reports explaining the cause of death, proof of marriage or dependency, birth or adoption records, incident reports, position descriptions, exposure records and any prior FECA claim information. When the death follows an accepted work injury, the earlier claim file may be especially important. When the illness appears years later, the quality of the medical explanation and the factual history can make all the difference.

Sept. 11 also reminds us that not every compensable condition is visible on the day of the event. Some injuries are immediate, but others involve exposure, cumulative stress or occupational disease that may not be diagnosed until later.

Employees should not wait to document what happened. Write down where you were assigned, what you were exposed to, who was with you, what symptoms developed and what medical care you received. Survivors should ask whether an incident report was filed, whether there was a prior FECA claim and whether agency or medical records connect the condition to federal duty.

FECA is also only one part of the survivor-benefits picture. A family may also need to deal with the employing agency, the Office of Personnel Management, Federal Employees’ Group Life Insurance, the Thrift Savings Plan, Social Security and, in certain 9/11-related circumstances, other specialized programs.

These programs do not all use the same forms, deadlines or rules. Filing a FECA claim does not automatically file a retirement survivor annuity claim, a life insurance claim, a TSP beneficiary claim or a Social Security survivor claim.

Here is the practical advice I would give any federal employee: Do not leave your family to search for help as if they were on a scavenger hunt. Keep beneficiary designations current. Tell your spouse, adult child or trusted person where to find your personnel records, FECA correspondence, insurance information, TSP account information, medical records and emergency contacts.

If your work involves unusual hazards, deployments, emergency response, law enforcement, security operations, transportation, public health or disaster recovery, keep records that explain what you did and where you served.

A practical family checklist: Know the employing agency contact; know whether a FECA claim was ever filed; keep copies of medical, exposure and incident records; preserve marriage, birth, adoption and dependency documents; confirm beneficiary designations for life insurance and TSP; keep the death certificate and final medical records; ask promptly about FECA death benefits; and remember that a delayed illness, retirement or separation from service does not necessarily end the question of whether a condition was work-related.

Forms and resources to know: The Labor Department’s FECA program website and OWCP forms page are the official places to find current instructions, forms and claim resources.

CA-1 for a traumatic injury that occurs during one workday or shift;
CA-2 for an occupational disease or illness that develops over more than one workday or shift;
CA-7 to claim wage-loss compensation;
CA-5 when a surviving spouse or eligible child claims death compensation;
CA-5b when another dependent relative files a survivor claim.

Employees and survivors can learn more about filing a claim and how to use the Labor Department’s ECOMP system to start claims, upload supporting documents and follow claim activity.

The anniversary of 9/11 is a time to remember the lives lost and the service given. It is also a reminder to prepare. FECA cannot remove grief, but it can provide medical support, income protection and survivor benefits when the requirements are met.

Families are in the best position when they know the benefit exists, understand that documentation matters and have the records needed to act quickly. In federal benefits, as in retirement planning, the best time to get organized is before there is an emergency.

]]>

GSA announces per diem increases for feds this fall

Erich Wagner — Wed, 09 Sep 2026 16:18:12 -0400

The General Services Administration announced Wednesday that it would increase per diem rates associated with lodging when fiscal 2027 begins on Oct. 1.

Each year, GSA updates the reimbursement rates it offers federal employees who travel on official business, based upon the average daily rate at hotels in each region of the continental United States. Beginning in October, the agency said it will increase the base lodging rate from $110 to $113 per night.

The update, announced in a filing scheduled for publication in the Federal Register Thursday, does not include changes to other federal per diem rates. The standard meal and incidental expenses rate will stay at $68, while non-standard meal and incidentals rates will remain between $68 and $92.

Last year, GSA kept all per diem rates static. The last time the reimbursement rate for meal and incidentals increased was October 2024.

Unlike previous years, no regions were added or removed from the list of locations with reimbursement rates higher than the base amount. In 2024, six cities were removed from the list, while in 2023, GSA added two cities while removing 16 others.

With Wednesday’s filing, GSA has updated its online tool where federal workers can check the per diem rates throughout the continental U.S., which is available on the agency’s website.

]]>

Air traffic controllers are still waiting on 2.8% of their congressionally approved pay raise

Erich Wagner — Tue, 08 Sep 2026 18:25:29 -0400

Sens. Tammy Duckworth and Dick Durbin, both D-Ill., last week urged Federal Aviation Administrator Bryan Bedford to greenlight the remaining 70% of a pay raise Congress appropriated for air traffic controllers last April.

As part of the spending package that ended the 76-day shutdown of the Homeland Security Department, Congress authorized a 3.8% pay raise for federal air traffic controllers, backdated to January, and set aside $140 million in appropriations to pay for it.

But Washington Examiner reported last month that Bedford has thus far only authorized a 1% raise and has withheld the remaining 2.8% increase. That’s because the law authorizing the pay increase granted him “sole discretion” to ensure improvements in “workforce scheduling, staffing utilization or other operational efficiencies” first.

“I can tell you many examples I’ve looked at would indicate there is a lot we can do to better utilize the limited staff we have when there’s actually traffic to control, as opposed to having lots of staff around when there’s very limited traffic to control,” Bedford told the Examiner.

But in a letter to Bedford, the Democratic senators described the law’s conditions as “not a high bar” and said leadership is asking for too much from the beleaguered ATC workforce, who are already chronically understaffed and overworked in one of the most stressful government jobs. They suggested Bedford is using the pending pay raise as leverage in negotiations with the National Air Traffic Controllers Association to further increase employees’ workloads.

“Holding air traffic controllers’ remaining 2.8% pay increase hostage to force a workforce that has operated under mandatory overtime for years to work longer hours is petty, disrespectful and counterproductive,” Duckworth and Durbin wrote. “Whether the Trump administration’s Brand New Air Traffic Control System succeeds or fails will depend on the morale of the people expected to run it.”

The fracas over the pay raise comes as the Trump administration takes a more punitive approach to air traffic controllers. Transportation Secretary Sean Duffy suggested ATCs could be “punished” if they called in sick during another government shutdown last fall, and the FAA moved to fire two air traffic controllers at LaGuardia Airport after they left work early upon completing their duties—a common practice across the agency—which reportedly contributed to a crash between an Air Canada jet and a firetruck last March.

Further stretching air traffic controllers’ hours or workloads will lead to more safety incidents, not less, the senators wrote.

“Squeezing more ‘utilization’ out o fair traffic controllers who have been understaffed, underpaid and overworked for years will weaken retention and undermine aviation safety,” they wrote. “Your own [workforce] plan says as much: ‘Chronic use of overtime leads to fatigue, controller burnout and ultimately loss of retention.’”

]]>

Reliable rules for your retirement recordkeeping

Tammy Flanagan — Thu, 03 Sep 2026 15:00:00 -0400

This is an update to an article I wrote last year (and the year before) that provides tips and resources to transition from employee to annuitant and to catch up on some of the retirement planning that should have, but maybe didn’t, begin when you started your career.

Here are some crucial tips for every stage of your federal career:

Understand the parts of the Federal Employees Retirement System (FERS)

FERS An Overview of Your Benefits

FERS Information

Learn about your Minimum Retirement Age (MRA)

Service Credit

You know how long you’ve been a federal employee, but is there sufficient evidence of your career so that service may be credited towards your retirement eligibility and calculation? Be sure that there is documentation of your prior federal civilian and military service in your electronic Official Personnel Folder (eOPF) or paper OPF. If documentation is missing, let your retirement specialist know so that it can be retrieved and included in your service history for leave accrual and future retirement eligibility and computation.

In today’s climate where every federal employee is on alert for early retirement offers and, in some cases, the “pink slip” of an involuntary separation, it is important to take responsibility for gathering copies of the records that prove your beginning and ending dates of federal and military service, your retirement coverage, and work schedule.

If your agency isn’t as responsive as you would like, try to learn more about service credit by reading and attending available training. Here are some places to begin:

Office of Personnel Management YouTube: Retirement Counseling Tips

Office of Personnel Management YouTube: Quick Guide to Retirement Processing

Office of Personnel Management YouTube: Navigating Federal Retirement: How to Register for a Login.gov Account through Services Online

Consider paying a deposit into FERS for military service, non-covered civilian federal employment performed before 1989 (civilian service not covered by FERS deductions after 1988 is not currently creditable), and any refunded FERS contributions that you may have if there was a break in your federal career allowing you a return of your retirement contributions.

Understand the value of your sick leave and annual leave

Sick leave is your “short-term disability” protection. Treat it like “gold!” You earn four hours per pay period which translates to six months of paid time off after 10 years and a full year of paid time off after 20 years of federal employment.

Unfortunately, sick leave does not add much value to your retirement benefit – only 1/12 of 1% (or 1.1%) of your high-three average salary per year. For example, if you have a high-three of $100,000, 1 month of sick leave would add 1/12 of $100,000 x 1% or $83/year or about $7/month… where using that 1 month of accrued leave would be worth around $48 x 22 workdays x 8 hour/day = $8,448. Plus you would earn a little more annual and sick leave at the same time! If you need to use your sick leave and you have retirement coming up in your near future, then it is OK to use it if you have a valid reason to use it. Otherwise, be thankful you were healthy! It hasn’t been that long that FERS retirement received any credit for unused sicvk leave towards retirement calculation credit… so there’s that! It has only been for about the last 13 years: 50% Credit was applied to retirements with an annuity starting date from Oct. 28, 2009, through Dec. 31, 2013 and 100% Credit was implemented for all retirements starting on or after Jan. 1, 2014.

Know the rules for using your leave:

Fact Sheet: Annual Leave (General Information): An employee may use annual leave to establish initial eligibility for retirement in reduction-in-force (RIF) and other restructuring situations. An employee who has received a specific notice of termination in a RIF situation may use annual leave past the date the employee would otherwise have been separated to establish initial eligibility for immediate retirement, including discontinued service or voluntary early retirement.

Fact Sheet: Sick Leave (General Information): Unused sick leave will be used in the calculation of an employee's or survivor's CSRS or FERS annuity based on retirement with an immediate annuity or on a death in service.

Update your designation of beneficiary

Unpaid Compensation SF 1152: (Last paycheck, allowances and reimbursement for things such as unused annual leave, and anything else that is owed to an employee from the agency upon the death of a federal employee)

Federal Employees Group Life Insurance SF 2823

Reporting a death/FEGLI Death Claims

Federal Employees Retirement System or Civil Service Retirement System SF 3102 This does not determine any recurring benefits such as a survivor annuity for a spouse or a child. This benefit consists of the deceased's retirement contributions, plus any applicable interest, in the Civil Service Retirement and Disability Fund.

Chapter 75, CSRS and FERS Handbook, Lump Sum Benefits

Office of Personnel Management Survivor Benefits

Thrift Savings Plan: To designate a beneficiary or beneficiaries, log in to My Account on tsp.gov or use one of the Thrift Line Service Center options listed in the Death Benefits booklet. Remember that once you select a beneficiary(ies), you cannot cancel and return to the order of precedence. You will only be able to designate a new beneficiary. If your spouse inherits your TSP account, they will have a TSP Beneficiary Account set up for their inherited funds.

Understand how the TSP works

Online Learning Opportunities: The TSP offers free recorded webinars, live webinars, and other scheduled training which cover many topics for TSP participants and their beneficiaries. These learning opportunities are hosted by the Federal Retirement Thrift Investment Board (FRTIB).

How Does Compound Interest Work? By Mark Catanzaro, St. Louis Federal Reserve Bank: Learn about the Rule of 72 and learn about how inflation affects purchasing power of money. This should always be considered when reviewing long-term projections. For instance, the purchasing power of $787,180 today would be approximately $434,580 in 30 years, assuming a 2% average inflation rate.

Core Funds vs. L Funds vs. Mutual Fund Window

Set up your “My Social Security” account with LOGIN.GOV: This account will let you access your earnings record, age-appropriate information about Social Security benefits and estimates of the benefits you are earning.

Leaving federal service early:

Leaving early might mean giving up lifetime FEHB coverage, life insurance, and credit for unused sick leave toward your retirement computation.

A deferred retirement is paid later when a federal employee is not entitled to an immediate retirement benefit, however, you must have a minimum of five years of creditable civilian federal service to qualify for any retirement benefit. A deferred annuitant is not entitled to the FERS Special Retirement Supplement to hold you over until you qualify for Social Security at age 62. When contemplating a move to the private sector, consider and compare workplace flexibility; leave policies and accrual; retirement benefits, insurance options; and of course, salary.

If you make the decision to leave:

Consider keeping your FERS retirement contributions on deposit to allow a deferred retirement benefit that is payable later if you have at least five years of creditable civilian federal employment.

Consider keeping your retirement savings in your TSP account if you leave federal service when you are at least 55 in the year of your separation from federal employment to avoid early withdrawal penalties that may apply from an IRA when you make withdrawals before age 59 ½. If you separate before the year that you reach age 55, be aware of the potential tax penalties for early withdrawal unless you meet one of the other exceptions as described in the TSP Tax Rules About TSP Payments publication.

You may continue your FEHB coverage for up to 18 months following your separation (this is called Temporary Continuation of Coverage comparable to COBRA in the private sector). Under TCC, you will pay the employer and the employee share of the premium.

Be sure to use up your flexible spending account dollars before you leave. The balances in your Health Care FSA (HCFSA), Limited Expense Health Care FSA (LEX HCFSA) and Dependent Care FSA (DCFSA) are treated differently if you separate before the end of the calendar year.
- Your HCFSA or LEX HCFSA will terminate as of the date of your separation or retirement. There are no extensions. Any eligible health care expenses incurred prior to the date of separation will still be reimbursed but those incurred after the separation date are not reimbursable, even if you accelerated your allotments. If you used your entire elected amount before FSAFEDS has deducted it from your pay, you will not be responsible for the remaining allotments.
- Your DCFSA remaining balance can continue to be used to pay for eligible dependent care expenses until your account balance is depleted or the end of the calendar year, whichever comes first.

Retirement Sooner than Later:

Make sure you are on track with your savings (review the TSP tips for new hires)

Learn the pros and cons of a TSP Loan before you apply for one.

Try saving for big items such as a car, vacations, and other major outlays rather than using credit or loans.

Update your designation of beneficiary forms

The TSP allocation you have could be too conservative

The TSP allocation you have could be too aggressive (or not aggressive enough)

Begin to project your retirement benefits payable at your MRA, age 60, and at age 62.

At your MRA, you may find that you are eligible for either a reduced MRA + 10 benefit or an unreduced immediate retirement benefit with a supplemental payment to help you retire earlier than age 62. Although you may be eligible to retire, can you afford to retire?

At age 60, you will only need 20 years of creditable service to retire with an unreduced, immediate retirement benefit, and be entitled to a FERS Special Retirement Supplement to age 62.

Age 62 is worth considering for a variety of reasons:

To be eligible for an immediate retirement at age 62, you only need five years of creditable civilian service covered by FERS.
If you have 20 years of creditable service (including credit for unused sick leave), you will qualify for a higher computation factor for your benefit resulting in a ten percent increase just for have 20 or more years of service (and being 62 or older),
Cost of living adjustments for most FERS retirees begin at age 62. Remember that if you retire before 62, your retirement under FERS (and the FERS Supplement) will not increase until you turn 62 years old. Exceptions for special groups such as law enforcement officers and firefighters retiring under FERS along with disability annuitants and survivor annuitants.
At age 62, you are now eligible for Social Security retirement benefits which will be more than the FERS Supplement because they will be based on your lifetime of Social Security covered employment rather than only your civilian service covered by FERS. Social Security benefits are adjusted annually for inflation.

To Do List:

Run the numbers
- Compute your FERS Basic Retirement Benefit (or have your HR office do it for you). Consider reductions for survivor elections, former spouse apportionments and survivor benefits, age reduction for MRA + 10 option, and proration of the benefit if you ever worked part-time. Be sure to review your service history and be sure that all the time is creditable for the calculation of your retirement.
- Your retirement benefit will also be subject to monthly withholdings for federal and state income tax (not all states tax federal retirement benefits, however), and insurance (FEHB, FEGLI, FLTCIP, and FEDVIP).
- If you are going to file for Social Security retirement, get an updated estimate at www.ssa.gov. Your benefit will be partially taxable on the federal level and there are about six states that also tax SSA benefits.
You can prepare the Application for Immediate Retirement, SF 3107, https://www.opm.gov/forms/pdf_fill/sf3107.pdf before you begin the Online Retirement Application. This will help you understand the decisions you will need to make and the documents you may need to upload into the ORA System. If available, set up pre-retirement counseling to ask questions, review your estimated benefits, and learn how your agency processes your retirement.
- Become familiar with the new Online Retirement Application: https://retire.opm.gov/portal
- SF 2818 Continuation of Life Insurance (FEGLI)
- Fact Sheet: Lump Sum Payment for Annual Leave
- Retirement Facts 8: Credit for Unused Sick Leave Under the Civil Service Retirement System (also applies to FERS)
The health plan you are in may not be the best health plan for retirement. This is especially true if you enroll in Medicare Part B once you have retired. FEHB plans wrap around Medicare nicely so you can avoid most out-of-pocket expenses (deductible, copays, and coinsurance). It pays to compare your current coverage with plans that offer incentives to enroll in Medicare. Members of the National Active and Retired Federal Employees Association have access to a series of webinars that can help you understand and choose the best plan for you. In addition, the Checkbook Guide to Federal Health Plans can provide comprehensive information for employees and retirees during open season.
- Retirement is not a Qualifying Life Event, however if you move outside of your FEHB plan’s service area or if you are 65 or older, you can use a QLE to change plans outside of open season. See a list of all QLEs on form SF 2809 or OPM Form 2809.
Make copies of everything that you fill out before you turn in your applications.
Brush up on tax information
- W-4P Withholding Certificate for Periodic Pension or Annuity Payments
- IRS Publication 721 Tax Guide to U.S. Civil Service Retirement Benefits
- Tax Rules About TSP Payments, TSP Publication 26
- Request to withhold taxes from your Social Security benefit

Be sure to have six months of living expenses in the bank before you retire to allow for delays in processing your benefits.
Update your designation of beneficiary forms (see above) Information for FERS Annuitants
When you receive your CSA (Civil Service Active) number from the Office of Personnel Management, it is time to set up your Services Online account. This will allow you to make changes such as updating your address, electing federal and state tax withholding, view your annuity statement and more.
Learn how to manage your TSP account in retirement
The TSP allocation you have could be too conservative
The TSP allocation you have could be too aggressive
Consider the options for distribution of your TSP account
TSP Distribution Booklet
Withdrawing Your TSP Account after Retirement
- One option for a TSP distribution is to purchase a TSP life annuity through the TSP vendor. To compute an estimate of this, use the TSP annuity calculator. The current TSP Annuity interest rate index factor is 5.075% up from 4.95% in August. The historical rates can be found here: https://www.tsp.gov/withdrawals-in-retirement/historical-annuity-rates/ Learn about this option in the TSP Annuity Fact Sheet.
- Other, more flexible options include requesting monthly, quarterly, or annual installment payments directly from your account; partial payments, as needed; and you may also transfer some or all your TSP to an IRA.
- Make sure that your address is current with the TSP and be sure to enter your bank information by accessing your account at www.tsp.gov. This will make your withdrawals go smoother and take less time to process.
- For your protection, the destination you wish to send your TSP payment to must be on file for at least seven days before it can receive funds. This includes any postal address or any direct deposit information you’ve entered. Make sure this information is on file for at least seven days before you start your request. Lost, stolen, damaged, or misdirected checks can take six weeks or longer to replace.

All the best to those of you who are getting ready to complete your career of dedicated federal service and move into the next chapter of your career or your retirement life!

]]>

TSP funds were back in the black in August

Erich Wagner — Tue, 01 Sep 2026 16:47:30 -0400

Each portfolio within the federal government’s 401(k)-style retirement savings program gained value last month, snapping a two-month streak of lackluster market performance.

The international stocks of the Thrift Savings Plan’s I Fund sported the best performance, gaining 3.32% last month. So far this year, the I Fund has grown 19.18%.

The C Fund, which is made up of large- and mid-size businesses, increased 2.72% in August, good for 13.12% growth since the start of 2026. And the small- and mid-size companies in the S Fund finished August 2.27% in the black, bringing its 2026 gains to 16.10%.

The fixed income (F) fund grew 0.40% last month, reducing its 2027 losses to 0.16%. And the G Fund, which grows at a statutorily mandated rate, gained 0.41% in August. So far this year, the G Fund has grown 3.00%.

Likewise, each of the TSP’s lifecycle (L) funds, which move toward more conservative investments as participants get closer to retirement, gained value in August. The L Income Fund, designed for those already making withdrawals, grew 1.11%; L 2030, 1.75%; L 2035, 2.04%; L 2040, 2.31%; L 2045, 2.31%; L 2050, 2.43%; L 2055, 2.85%: L 2060, 2.86%; L 2065, 2.86%; L 2070, 2.85%; and L 2075, 2.86%.

Since January, the L Income Fund has increased 6.34%; L 2030, 9.78%; L 2035, 11.15%; L 2040, 11.87%; L 2045, 12.50%; L 2050, 13.14%; L 2055, 15.57%; L 2060, 15.57%; L 2065, 15.57%; L 2070, 15.56%; and L 2075, 15.56%.

]]>

Trump’s 2027 pay freeze has unions warning of recruitment, retention problems

Erich Wagner — Mon, 31 Aug 2026 17:06:45 -0400

Organizations representing federal employees and their allies in Congress in recent days have decried President Trump’s plan to freeze most federal workers’ pay while directing sizeable raises for federal law enforcement and members of the military.

Last week, Trump issued an alternative pay plan formalizing the call from his fiscal 2027 budget proposal to freeze most federal workers pay at 2026 levels next year. He also announced that he would direct the Office of Personnel Management to authorize a 3.8% increase in basic pay for federal law enforcement officers, to go along with a between 5 and 7% raise for military service members, depending upon their rank.

But unions and professional associations warned denying most feds a raise next year could exacerbate recruitment and retention crises at several agencies. Following the Trump administration’s push to cut down on federal headcounts last year, including through mass firings and encouraging early retirement and buyout programs, the non-postal federal civilian workforce fell below 2 million employees this year for the first time since the 1960s, per June data from the Office of Personnel Management.

“This is a slap in the face to the dedicated civil servants who keep our nation running and will make it harder for federal agencies to recruit and retain essential employees,” said Everett Kelley, national president of the American Federation of Government Employees. “For years, wages for federal employees haven’t kept pace with rising costs for housing, food, utilities and other essentials. Private-sector workers currently earn 27% more on average than federal employees doing the same job. To add insult to injury, the administration is asking for special approval to pay hundreds of employees ‘requiring an extremely high level of expertise’ up to $400,000 a year—equal to the president’s base salary—even as it denies workers a basic cost-of-living raise.”

Kelley referred to recently finalized regulations granting OPM greater authority to OK critical position pay that could allow up to 400 positions to earn more than double the current General Schedule pay cap of $197,200 per year.

William Shackelford, national president of the National Active and Retired Federal Employees Association, said that when coupled with inflation and a likely increase to health insurance premiums through the Federal Employees Health Benefits Program next year, a pay freeze is effectively a pay cut.

“This ‘more work for less pay’ policy will only drive the most valuable employees out of federal service, costing Americans in degraded services—from care to veterans to law enforcement and support for our military, wasteful spending due to inadequate management of government contracts and grants, less reliable information and more,” he said. “[Pay] decisions do not only affect current employees—they reach into retirement, too. Annuities are based on high-3 average salary, so a freeze affects the value of future retirement pay as well as today’s paychecks.”

And Dave Spero, national president of the Professional Aviation Safety Specialists, a union representing Federal Aviation Administration workers who install and maintain air traffic control and other aviation safety equipment, said a pay freeze could jeopardize agency efforts to hire hundreds of new technicians.

“The FAA’s workforce plan to hire an additional 750 technicians just became that much more difficult,” he said. “Aviation safety inspectors and other critical employees will begin to retire and the recruitment of these aviation safety professionals will suffer . . . These employees maintain and oversee the largest, safest and most complex air traffic control system in the world. Dismantling it by destroying the morale of the employees is heartbreaking.”

Rep. Steny Hoyer, D-Md., accused the administration of trying to “drive hardworking public servants out” of agencies, and vowed to fight for Congress to override the president’s plan.

“Last week’s announcement that civilian federal workers will not be receiving an annual cost-of-living adjustment for 2027—even while military and law enforcement personnel are given as high as a 7% raise—will only further reduce morale and retention at agencies and make it harder to recruit the best and brightest to serve,” he said. “I’m proud to represent more than 75,000 civilian federal employees in Maryland’s Fifth District, and I will continue to fight this administration’s efforts to denigrate them and deny them the pay and benefits they are due.”

]]>

Trump formally proposes pay freeze for most federal workers, 3.8% increase for law enforcement

Erich Wagner — Fri, 28 Aug 2026 15:44:04 -0400

Most federal employees would see their pay frozen at 2026 levels next year under an alternative pay plan issued by President Trump this week, though for the second straight year, federal law enforcement officers would receive a 3.8% increase.

Trump first proposed the pay freeze as part of his fiscal 2027 budget proposal. Though the document was silent on federal employee compensation, officials with the Office of Management and Budget quickly clarified that its omission equated to a planned freeze for 2027.

In a letter to House Speaker Mike Johnson, dated Thursday, Trump said increasing most federal employees’ pay would be “unacceptable and unfair” given the inflation that occurred under the Biden administration. Inflation actually has risen from 2.8% when former President Biden left office to 3.3% as of last month.

“I have therefore decided to set at zero the pay adjustment to be made for the 2027 pay year,” Trump wrote. “This decision will maintain fiscal responsibility without harming the government’s ability to recruit and retain well qualified employees.”

But in the next paragraph, Trump said that for the second straight year, he instructed the Office of Personnel Management to issue a 3.8% increase in basic pay to federal law enforcement personnel next year, “to increase recruitment and retention” in those roles.

The issuance of a pay freeze would mark a departure from last year, however. While Trump proposed a pay freeze as part of his fiscal 2026 budget, ultimately he elected to institute a 1% across-the-board raise for non-law enforcement federal workers last August.

Alternative pay plans have been a routine exercise across Democratic and Republican administrations. Presidents have until the end of August to issue those proposals, else much larger increases to locality pay would automatically take effect, due to the 1990 Federal Employees Pay Comparability Act.

Congress may override the president’s proposal, typically as part of appropriations legislation. Though the House’s spending bills are silent on federal employee compensation—effectively endorsing Trump’s plan—the Senate has yet to unveil its draft of the spending package that typically serves as the vehicle for pay raises.

In early 2019, the newly Democratically controlled Congress successfully overrode Trump’s plan to freeze federal worker pay that year, ultimately instituting a 1.9% average pay raise retroactive to the beginning of that year.

]]>

Want to retire at the end of 2026? Start planning now

Tammy Flanagan — Thu, 27 Aug 2026 15:00:00 -0400

If you're planning to retire at the end of 2026, it's time to get busy preparing. End-of-year retirements are popular, especially for federal employees who are saving annual leave for a large lump-sum payout in 2027.

The Office of Personnel Management continues to process a historically high volume of retirement claims, and while digital submissions are improving processing efficiency, overall claim inventories are still above target levels. This is why early preparation helps during the transition from employee to annuitant.

Employees can reduce potential delays by confirming service records, reviewing benefit elections, preparing financially for the transition period and submitting retirement paperwork early through their agency's recommended process.

Some recent retirement processing numbers:

In July 2026, OPM processed 14,370 digital claims and 3,471 paper application packages. By comparison, in January 2026, OPM processed 6,465 digital applications and 9,106 paper applications.

The 2025 Deferred Resignation Program contributed to the 2026 surge. Large numbers of employees left federal service under the DRP, creating delays for payroll providers and human resources offices responsible for initial retirement processing.

As of the end of July 2026, OPM still had 24,784 claims awaiting adjudication, above its goal of 13,000 or fewer pending claims. Although the inventory has improved from a high of 65,237 claims in February 2026, processing times remain a key consideration for employees planning a year-end retirement.

Checklist to get ready

1. Build a cash reserve for the transition.

Your final paycheck should arrive within a few weeks of retirement, and your lump-sum annual leave payment usually follows soon after. However, timing can vary.

Interim retirement payments may begin within 6 to 8 weeks, while final adjudication may take several months. In July 2026, digital claims averaged about 98 days from receipt at OPM, while paper claims averaged 156 days.

It is not clear whether those are 22-day work months or 30-day calendar months, but either way, these are only "averages."

2. Confirm that your records and paperwork are complete.

Verify that your federal service is fully documented in your eOPF, including appointment dates, work schedule changes and retirement coverage changes.

Keep copies of key records in your personal personnel file.

Confirm whether any military service credit deposits are complete.

Verify that all service is creditable for retirement eligibility and computation before setting your retirement date.

3. Update beneficiary designations for CSRS or FERS, TSP and FEGLI.

4. Review survivor benefit elections.

If applicable, consider spousal survivor benefit options before submitting your retirement application.

5. Confirm FEHB eligibility.

Remember, you must be "covered" by FEHB (or PSHB) for the five years immediately preceding your retirement date. You also must be retiring with immediate retirement eligibility.

6. Determine whether a former spouse is entitled to benefits.

If applicable, review your divorce decree or court order. Include a copy with your retirement application if benefits are payable to a former spouse.

7. Review life insurance needs.

Consider your FEGLI coverage and review the Continuation of Life Insurance form, SF 2818

Additional information is available from OPM's life insurance resources

8. Give sufficient notice and begin the application early.

OPM advises employees to contact their employing agency about recommended submission timeframes. Agencies generally need at least 60 days to process a retirement application before sending it to OPM, but some agencies may require more time.

9. Final retirement estimate

Do you understand the numbers on this estimate? If not, ask questions to be sure.

This is an "estimate." OPM is responsible for the final numbers. Be sure to receive a final retirement estimate and be sure that you understand and agree with the dates and numbers.

10. Understand the difference between paper and digital applications.

Paper applications: Employees complete the Application for Immediate Retirement, SF 3107 for FERS or SF 2801 for CSRS. HR reviews the application, completes the Certified Summary of Federal Service, which you will need to sign and return, and submits the package through payroll to OPM.

Digital applications: When an employee notifies HR of a retirement date, HR sends an invitation to access the Online Retirement Application system. HR and payroll review and complete their portions before electronically releasing the application to OPM.

]]>

Life happened. Now what about your retirement benefits?

Tammy Flanagan — Thu, 20 Aug 2026 15:00:30 -0400

Retiring from federal service is a major milestone, of course, but it does not end the need to understand how federal benefits work. In the years after retirement, life events and new opportunities can raise important questions about insurance, survivor benefits, beneficiary designations and the effect of returning to government employment.

Today I will highlight several post-retirement issues that federal employees may want to plan for in advance. This is not an all-inclusive list, but it’s a list that will hopefully remind you that it is important to review your benefits and be sure to understand how they can change as life goes on.

The topics included today are the FEGLI Living Benefit, reemployment in federal service after retirement, changing beneficiary designations, marrying after retirement and providing benefits to a new spouse, and understanding how CSRS or FERS retirement benefits may change over time.

The FEGLI Living Benefit

The FEGLI Living Benefit is one that we hope that we will never need, but it can be very important to the person who is entitled to it.

This benefit allows an eligible employee, annuitant, or compensationer (a person receiving benefits from the Office of Workers’ Compensation Programs as a result of a work-related injury) enrolled in FEGLI Basic life insurance to receive a lump-sum payment while still living if the person is terminally ill and has a documented medical prognosis showing a life expectancy of no more than nine months. This payment can provide important financial flexibility at a difficult time.

It may help pay for medical costs, in-home care, family travel, household expenses, debt, or other needs that arise when an employee or retiree is facing a serious illness and may no longer be able to work or manage expenses in the usual way.

Using the Living Benefit also affects the people who would otherwise receive the FEGLI Basic insurance after the insured person’s death. The Living Benefit is an advance payment of Basic insurance, so any amount paid while the insured person is living reduces, or may eliminate, the Basic insurance payable to beneficiaries later.

Employees may be able to elect a full or partial Living Benefit, while annuitants and compensationers may elect only a full Living Benefit. A full election generally means there will be no remaining Basic insurance payable to beneficiaries after death, although any FEGLI Optional insurance remains separate and is not reduced by the Living Benefit election.

Although premiums may end for the amount covered by the Living Benefit, the individual must continue to pay premiums for any option coverage remaining.

The Living Benefit is not subject to federal income tax. According to the U.S. Office of Personnel Management, these payments are tax-free at the federal level, though you should still check your specific state laws since a few states treat them differently.

Because the decision is irrevocable and directly affects both current cash flow and survivor protection, it should be considered carefully with family members, beneficiaries, and financial or tax advisers.

For example, suppose a federal retiree with FEGLI Basic coverage is diagnosed with a terminal illness and elects to receive the full Living Benefit. The lump-sum payment could help the retiree pay for uncovered medical expenses, arrange additional care at home, or reduce financial pressure on family members.

However, because the Basic insurance has been paid in advance, the retiree’s beneficiaries should understand that little or no Basic insurance may remain payable after death, depending on the election made.

Reemployment in federal service after retirement

Some retirees later return to federal employment as reemployed annuitants. In many cases, the retiree’s existing CSRS or FERS annuity continues during the period of reemployment, but the new federal salary is reduced, or offset, by the amount of annuity that applies to the time worked.

This means the retiree usually does not receive both a full annuity and a full salary at the same time unless a specific exception or dual compensation waiver applies. The employing agency pays the reduced salary and sends the offset amount to the retirement fund, while OPM generally continues paying the annuity separately.

FERS retirees who are receiving the FERS annuity supplement should also understand that returning to work can affect that payment. The supplement is separate from the regular FERS basic annuity and is intended to approximate the Social Security benefit earned through FERS service until age 62.

After a retiree reaches the minimum retirement age, the supplement is subject to an earnings test. Wages or net self-employment income above the annual exempt amount ($24,480 in 2026) can reduce the supplement by $1 for every $2 earned over the limit, and high enough earnings can reduce the supplement to zero.

This rule applies even when the retiree returns to federal service as a reemployed annuitant, including situations involving a dual compensation waiver; the waiver may affect salary offset rules, but it does not by itself exempt the FERS supplement from the earnings test.

Reemployment can also allow an increase to future retirement benefits if the period of service is long enough and retirement deductions are properly withheld or deposited. A supplemental annuity may be available after the annuitant completes at least one year of actual, continuous, full-time reemployment service, or the equivalent amount of part-time service.

If an annuitant is reemployed in a part-time position at a tour of duty less than 40 hours per week, for example, 20 hours per week, and if the annuitant works a total of 1,040 hours in a year (52 weeks x 20 hours), then the employee must work for two continuous years to be eligible for a supplemental annuity.

When the reemployment ends, the supplemental annuity is added to the retiree’s existing annuity rather than replacing it, giving the retiree an additional monthly amount based on the new period of federal service.

A redetermined annuity may be available after a longer period of reemployment, generally at least five years of actual, continuous, full-time service, or the part-time equivalent. Instead of simply adding a supplemental amount to the old annuity, a redetermined annuity is a new computation that considers all creditable service and the law in effect when the employee separates from reemployment.

The retiree must elect the redetermined annuity in place of the prior annuity and any supplemental annuity that otherwise would be payable. Because the rules can vary based on the type of retirement, appointment, retirement system, salary offset status, and whether a waiver applies, retirees should review the details with the employing agency and OPM before accepting reemployment and again before separating from the new position.

OPM has a new Benefits Administration Letter 26-104, titled Reemployed Annuitant Decision Tables, designed to detail the agency actions required for retirement coverage and benefits, health insurance, and life insurance for an annuitant upon appointment, separation, and death (if an annuitant dies during reemployment).

Changing beneficiary designations after retirement

Beneficiary designations determine who receives certain benefits, such as life insurance proceeds or retirement contributions or the final retirement payment, after a retiree’s death. Because family circumstances can change after retirement, retirees should periodically review and update their designations to make sure benefits are paid according to their current wishes.

Outdated forms can lead to unintended results, especially after marriage, divorce, the death of a beneficiary, or changes in family relationships. An easy way to do this is to file new designation of beneficiary elections which will supersede any that have been previously filed.

Different federal benefits have different designation of beneficiary forms, so retirees should be careful not to assume that one designation controls every benefit. For FEGLI life insurance, the beneficiary form is SF 2823, Designation of Beneficiary, Federal Employees’ Group Life Insurance Program. SF 3102 is the Designation of Beneficiary form for federal employees and retirees under both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS).

You can download these forms directly from www.opm.gov/forms. These forms are separate from any survivor annuity election, which is governed by different rules.

Annuitants should send the completed SF 3102 and SF 2823 to the U.S. Office of Personnel Management Retirement Operations Center at P.O. Box 45, Boyers, PA 16017-0045. The forms must reach OPM before your death to be legally valid.

TSP beneficiary designations are handled separately through the Thrift Savings Plan. Retirees can add or update TSP beneficiaries by logging in to My Account at TSP.gov; TSP also explains that the designation must be on file with TSP at the time of death and that a will or other document will not control the TSP account.

Because beneficiary designations can override expectations after events such as divorce, remarriage, or the death of a beneficiary, retirees should review FEGLI, CSRS or FERS, and TSP designations whenever their family or estate-planning situation changes.

Marriage after retirement and benefits for a new spouse

Marriage after retirement can create new questions about survivor benefits and continued access to federal benefit programs for a new spouse. If a retiree marries after leaving federal service, the retiree may elect a reduced annuity to provide a survivor annuity for the new spouse, but the election generally must be made in writing to OPM within two years of the date of marriage.

This election is separate from changing beneficiary designations and is important because, without a survivor annuity election, a new spouse generally will not receive a continuing monthly CSRS or FERS survivor benefit after the retiree’s death.

OPM will provide the retiree with form RI 20-63, Survivor Annuity Election for a Spouse, which will include the option of choosing the maximum amount available or an amount that will provide a survivor annuity of a specific dollar amount (no more than the maximum survivor annuity benefit).

OPM will also include a letter outlining the cost associated with this election and directions on how to respond within the two-year deadline for this election. It is important to contact OPM after you remarry and well before the expiration of the two-year deadline so that you have time to consider your options.

In addition to the regular survivor annuity reduction, a post-retirement election for a new spouse generally requires a permanent actuarial reduction. OPM describes this reduction as the difference between the annuity already received without the survivor election and the amount that would have been paid if the survivor election had been in effect since retirement, plus 6% interest.

This actuarial reduction is spread over the retiree’s lifetime and continues even if the marriage later ends, so retirees should ask OPM for a cost statement and carefully review the effect on their monthly income before confirming the election.

A new spouse may also be added to FEHB coverage because marriage is a qualifying life event. A retiree who is enrolled in FEHB may generally change to a family enrollment or self plus one enrollment during the permitted qualifying life event window, beginning 31 days before marriage and ending 60 days after marriage or doing a future open season.

Retirees should include this request when contacting OPM regarding the remarriage. Providing a survivor annuity is also an important election to allow FEHB coverage for your new spouse to continue if you predecease them.

Cost-of-living adjustments to maintain your buying power

The purpose of cost-of-living adjustments (COLAs) for federal retirees is to protect the fixed retirement income CSRS or FERS retirement benefit from the impact of inflation that can erode the buying power as the costs of goods, services, and medical care rise over time.

The retirement benefit COLA automatically adjusts annuity payouts using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) measured during the third quarter of the year.

The CSRS receives the full calculated COLA matching the measured rate of inflation, while the FERS benefit often receives a modified or capped COLA (e.g., if inflation exceeds 3%, the FERS increase is typically 1% less than the CPI increase) and generally does not kick in for regular retirees until the Minimum Retirement Age (MRA), which is 57 for retirees born in 1970 and later and between 55 and 57 for retirees born earlier.

The “offset” for CSRS Offset retirees and survivor annuitants

CSRS Offset retirees and survivor annuitants should also understand that their civil service annuity may be reduced when Social Security entitlement begins or would begin upon proper application. For retirees, OPM generally determines the offset around age 62, or at retirement if the retiree is already over age 62, and reduces the CSRS annuity by the portion of Social Security attributable to CSRS Offset service.

A CSRS Offset survivor annuity is computed like a regular CSRS survivor annuity, but it may be reduced if the survivor is eligible for Social Security benefits based on the retiree’s federal service.

In cases where the survivor annuity is reduced because of the survivor annuitant’s own “earned” Social Security retirement benefit, the offset may be reduced or eliminated. It is important for survivor annuitants to understand this since OPM may not always be aware of the survivor annuitant’s earned Social Security benefit amount.

See previous Government Executive articles, A Rude Annuity Shock and Sometimes, Your Benefit Really Is Too Small, to learn more about this situation.

Health benefits and life events

Health benefits can also change after retirement, not only the premiums and the benefits, but your needs may change over time. Outside of open season, FEHB changes generally must be tied to a Qualifying Life Event (QLE), such as marriage, divorce, death of a family member, or a move out of a plan’s service area, and many changes must be requested within 60 days of the event.

Annuitants should confirm the effective date with OPM because the timing can depend on the type of change. For example, some enrollment decreases may be made at any time and are commonly effective at the beginning of the month after OPM receives the election, while other changes follow the qualifying life event rules.

There is a little-known option to change insurance just because you have reached age 65, it is QLE 2L. This is your “ace in the hole” that you can only use once in your lifetime to change plans outside of open season.

This is generally used to change plans when enrolling in Medicare after retirement, but if not used at age 65, it can be used later – but only once!

Restoration of a reduced CSRS or FERS annuity

If a spouse or former spouse dies and the retiree’s CSRS or FERS annuity is being reduced to provide a survivor annuity for that person, the retiree should notify OPM and provide the required proof, such as a death certificate or marriage certificate in the case of a former spouse who remarries before age 55.

OPM may then increase the retiree’s annuity by removing the survivor reduction, restoring the annuity to the unreduced amount prospectively.

Retirees who divorce should also notify OPM promptly. If the marriage ends by divorce, the survivor reduction may be removed. However, as is often the case, a court order may require the retiree to continue providing a former spouse survivor benefit.

In a divorce, not only are survivor annuity benefits sometimes continued for the former spouse, but divorce can also create continuing rights for a former spouse to a portion of your retirement, often referred to as the “marital share.”

Court orders may also require assignment of FEGLI to the former spouse and require continuation of health benefits for the children of the marriage. There are also Temporary Continuation of Coverage (TCC) and Spouse Equity benefits available for a former spouse to continue health benefits coverage.

Because OPM must follow clear and specific court orders and will not rewrite unclear terms, retirees should make sure any divorce order addresses federal retirement, survivor, health benefits, and life insurance issues with precision. Be sure that your attorney uses the language outlined in the Attorney Handbook.

Key takeaways for federal retirees

Review benefits after every major life event. Marriage, divorce, the death of a spouse or beneficiary, reemployment, or a serious illness can all change how federal benefits work.

Keep beneficiary designations current. FEGLI, CSRS, FERS, and TSP benefits are controlled by their own forms or account records, and a will may not override an outdated designation.

Do not assume a new spouse is automatically protected. A survivor annuity election, FEHB enrollment change, or other action may be required within a specific deadline.

Understand how income can change after retirement. COLAs, CSRS Offset reductions, survivor benefit reductions, reemployment salary offsets, supplemental annuities, redetermined annuities, and court orders can all affect monthly income.

Act promptly after divorce or the death of a spouse or former spouse. OPM may need documentation to adjust an annuity, restore an unreduced benefit, or apply a court order.

Check before relying on assumptions. Federal retirement, insurance, health benefits, and TSP rules can interact in ways that are easy to overlook, so retirees should contact OPM, TSP, or a knowledgeable benefits specialist before making decisions that affect current income or survivor protection.

Understanding federal benefits does not end on the day an employee retires. Retirement can bring new decisions about life insurance, beneficiary designations, reemployment, survivor protection, health benefits, and changes to CSRS or FERS annuity payments.

By reviewing these rules before a major life event occurs – and knowing when to contact OPM, TSP, or a former employing agency, retirees can make more informed decisions, avoid unintended consequences, and better protect themselves and their families throughout retirement.

]]>

Bill expanding paid leave for feds is pared back in Senate

Erich Wagner — Mon, 17 Aug 2026 17:54:59 -0400

Legislation aimed at improving the amount of paid leave federal employees are eligible each year took another step forward as Democratic senators introduced companion legislation shortly before Congress left for its August recess.

In June, a bipartisan group of House lawmakers introduced the Comprehensive Paid Leave for Federal Employees Act (H.R. 9261), a measure that would provide feds with up to 12 weeks each year of paid family leave, to be used to attend to a serious health condition or care for a spouse, child or parent. It also would cover absences needed in connection with a family member’s deployment into active-duty military service, or to help a family member who has been the survivor of domestic violence, sexual assault or stalking.

And last month, Sens. Brian Schatz, D-Hawaii, and seven other Democrats introduced their own version of the bill (S. 5168). That measure also extends 12 weeks per year of paid family leave to federal workers to deal with a health condition or a family member’s health condition and to attend to a family member’s military deployment, but it excises the provision relating to victims of domestic violence, sexual assault and stalking.

“Right now, our laws are forcing federal workers to make the impossible choice between caring for their families and keeping their jobs,” Schatz said in a statement. “Our bill will provide federal workers with 12 weeks of paid leave, giving them the time they need to take care of their own health and their loved ones.”

Paid family leave and other provisions relating to federal workers has recently been a tougher sell for the Senate side of the U.S. Capitol. In 2019, as lawmakers considered providing 12 weeks of paid parental leave to federal workers each year via the 2020 National Defense Authorization Act, the House’s version of the legislation also included family leave, only for the Senate to balk during negotiations between the chambers.

Likewise, the House has included a provision blocking President Trump’s anti-union executive orders’ implementation at the Pentagon in both last year’s NDAA and the one currently under consideration. The Senate stripped the provision from their version of the bill last year.

Despite the more pared-back approach, the Senate’s family leave bill has still attracted the support of several unions and other federal employee associations.

“Expanding paid family and medical leave ensures federal employees never have to choose between caring for themselves or a loved one and serving the American people,” said Everett Kelley, national president of the American Federation of Government Employees. “This legislation will strengthen the federal workforce, improve employee retention, and help the government remain a competitive employer for the dedicated public servants our nation depends on.”

“Federal employees should never have to choose between caring for their loved ones and paying their bills on time,” said National Treasury Employees Union National President Doreen Greenwald. “The Comprehensive Paid Family Leave Act would provide federal workers with the flexibility and support they need during some of life’s most significant moments. As the federal government works to attract and retain talented public servants, providing comprehensive paid family leave is both the right thing to do and a smart investment in the workforce.”

]]>

Lawsuit seeks to enforce 2025 SCOTUS decision improving pay for feds called to active duty

Erich Wagner — Thu, 13 Aug 2026 16:36:53 -0400

A Veterans Affairs Department employee filed a lawsuit against the Office of Personnel Management Wednesday seeking to force it to promulgate new regulations implementing a Supreme Court case opening up differential pay to more federal workers who simultaneously serve as military reservists that was decided more than a year ago.

In 2009, Congress enacted legislation aimed at ensuring federal workers are not forced to take a pay cut when they deploy to active duty as part of their service in a military reserve unit, as their military pay is often lower than their civilian salary.

Though the law tasked the Office of Personnel Management to issue regulations governing this differential pay, the HR agency instead issued policy guidance to agencies in 2009. That guidance, last updated in 2015, requires federal workers to prove that their active-duty deployment is “substantially connected” to a particular war or national emergency in order to be eligible for differential pay.

But in April 2025, the Supreme Court overruled that test in Feliciano v. Department of Transportation, finding that the law requires only a “temporal link” between an employee’s deployment and a national emergency. That case, decided by a 5-4 vote, involved a federal air traffic controller who spent nearly five years on active duty as a Coast Guard reserve petty officer escorting military vessels to and from harbor in support of the wars in Iraq and Afghanistan.

In a new lawsuit, VA attorney Marcus Colicelli, who also serves as a major in the Army Reserve’s Judge Advocate General’s Corps, argues that OPM’s continued failure to issue binding regulations on differential pay or to update its policy guidance to reflect the new Supreme Court precedent constitute a violation of the Administrative Procedure Act. During litigation of Feliciano, OPM twice stated that it planned to revise its guidance document; to date, it has not occurred.

“The Merit Systems Protection Board has meanwhile held, in a precedential decision involving the same employing agency as plaintiff’s, that a federal civilian employee ordered to active duty . . . is entitled to differential pay . . . where that service temporally coincided with a declared national emergency,” the suit states. “OPM’s guidance continues to instruct employing agencies to the contrary.”

According to Colicelli and his attorneys, the status quo effectively requires federal workers to pursue differential pay through their agency and be denied, then seek redress before MSPB in order to be made whole.

“Had OPM discharged the duty [the statute] imposes, its instructions would carry the force of law and would bind employing agencies government-wide,” they wrote. “Instead OPM substituted a non-binding subregulatory document for the binding rule Congress required. The result is that no employing agency is authoritatively directed to administer [the statute] as Feliciano construes it, and each reservist is left to vindicate his own entitlement agency-by-agency and activation-by-activation. The absence of a binding rule is not incidental to plaintiff’s injury; it is the injury.”

In a statement Thursday, Trial Lawyers for Justice, the firm representing Colicelli, said it is soliciting other plaintiffs in preparation for filing a class-action case with the Merit Systems Protection Board in the coming weeks.

“The Supreme Court could not have been clearer: these men and women earned this pay, and the law requires the government to make them whole,” said attorney Andrew Tutt, who also represented Feliciano in his case. “They held up their end of the bargain. It is long past time for the government to hold up its own.”

]]>

Before you take money out of your TSP, weigh these trade-offs

Tammy Flanagan — Thu, 13 Aug 2026 15:00:00 -0400

The Thrift Savings Plan can be one of the most valuable retirement assets for federal employees (as well as members of the uniformed services), but once you leave federal service, the distribution decision is not just a matter of deciding how much cash you need. There are other important considerations to understand before you can select the dollar amount you will need to make your retirement financially secure. Remember that once a TSP withdrawal is processed, it generally cannot be reversed, so these are all important considerations to understand before deciding on your distribution plan.

If you have a minimum balance of $200, you may keep your money in the TSP. TSP elections for withdrawal include taking a partial distribution (minimum amount is $1,000), electing a total distribution, purchasing a life annuity (must have at least $3,500 to elect this option), setting up installment payments or combining methods.

Keeping money in the TSP may be appropriate if you do not need immediate income, because the plan offers simple investment choices and historically low expenses. Installment payments can create predictable cash flow while leaving the remaining balance invested. A life annuity can provide income for life, but it is typically irreversible and may reduce flexibility for heirs or future emergencies. A lump sum may be useful for a specific need, but it can create a large taxable event and remove assets from a disciplined retirement structure.

Taxes

Traditional TSP withdrawals are generally taxed as ordinary income in the year received. That means the timing and size of distributions can affect your marginal tax bracket, taxation of Social Security benefits, net investment income planning, state income taxes and estimated-tax requirements. Adding additional taxable income may even have an impact on the premiums you will pay for Medicare Parts B and D.

The TSP reports distributions to the IRS and may be required to withhold federal income tax from taxable payments, but remember that this withholding is not the same as the final tax that may be due. In addition to the IRS and federal income taxes, remember that many states will also consider these distributions taxable on the state level.

States that generally do not tax TSP or similar retirement-account distributions include the following states that don’t have an income tax — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — as well as states that generally exempt most retirement distributions, such as Illinois, Iowa, Mississippi and Pennsylvania.

State rules can change and may depend on residency, age, income level and the type of retirement income, so retirees should verify their state’s current rules before making large withdrawals or relocating to a state because of favorable income tax rules. Don’t forget about property tax, sales tax and other taxes that states need to collect to make the state an attractive place to retire.

Retirees should coordinate withdrawals with other taxable income, deductions, charitable giving and any planned Roth conversions.

Required minimum distributions (RMDs) also matter. If you are subject to RMDs, waiting until the first-year deadline may cause two taxable distributions in one calendar year: the delayed first RMD and the current-year RMD. That income bunching can increase taxes and may ripple into other areas, including Medicare premiums.

Roth TSP balances are treated differently from traditional balances under recent rules, but taxpayers should confirm current requirements before making elections. If you were born before 1960 and have left federal service, your RMD is at age 73 and the first distribution is due by April 1 of the year after you turn 73. If you were born in 1960 or later, your RMD age is 75 and your first distribution is due by April 1 of the year after you turn 75 or older and have left federal service.

If you are retiring early, be sure to understand the 10% early withdrawal penalty tax if you plan to take distributions or elect a withdrawal option before you reach age 59½. There is good news for some, since the additional 10% tax generally does not apply to payments made from your TSP account if you separate from federal service during or after the year you reach age 55.

Additionally, if you are a public safety employee as defined in section 72(t)(10)(B)(ii) of the Internal Revenue Code, payments made after you separate from service during or after the year you reach age 50 or have 25 years of service under the TSP are also exempt.

If you elect a life annuity, these payments will not be subject to the 10% penalty. If you elect a distribution of substantially equal payments over your life expectancy, these payments will not be penalized, but you must maintain this election until you reach age 59½.

The penalty can be applied retroactively if you stop your life expectancy installments or take additional money from your account within five years of beginning your installments or before you turn 59½ years old, whichever is later. See the TSP booklet 26, Tax Rules About TSP Payments, for more tax information and additional exceptions. Also, refer to IRS Publication 721, Tax Guide to U.S. Civil Service Retirement Benefits.

Living longer

One reason TSP distribution planning is so important is that older adults are one of the fastest-growing segments of the U.S. population, and more retirees may need their savings to last 25, 30 or even more years in retirement. Many retirees underestimate how long retirement can last.

Taking too much too soon can leave the later years exposed to inflation, medical costs, long-term care expenses or the loss of a spouse’s income. On the other hand, withdrawing too little may lead to unnecessarily large RMDs later or leaving out some of the enjoyment this additional income can add to your early retirement years.

A sustainable withdrawal strategy should consider expected longevity, survivor needs, inflation, investment risk, guaranteed income sources (i.e., Social Security benefits, CSRS, FERS retirement benefits, etc.) and whether it is important to preserve assets for your beneficiaries.

The following examples show why the distribution rate matters as much as the investment return. These are simplified illustrations using a $500,000 TSP balance, annual withdrawals taken at year-end, no additional contributions, no taxes, no inflation adjustment and steady annual returns of either 6% or 10%.

Actual results will vary because market returns are not level from year to year, taxes reduce spendable income and increasing withdrawals for inflation will shorten the timeline.

If you withdraw…

$25,000/year or 5% of your $500,000 balance, your payments can last indefinitely if a rate of return of at least 6% is earned consistently before costs and taxes are deducted.

However, if you increase your withdrawal amount each year by an estimated 3% inflation rate to maintain your purchasing power, your investment will last for only 29 years.

If you withdraw 7% of your balance or $35,000/year, you will run out of money in about 33 years if you earn a consistent 6% rate of return.

Your money may last indefinitely if 10% is earned consistently before costs and taxes.

However, if you add a rate of 3% or 4% inflation, your spending will quickly overtake the growth, and you may run out of money in as little as 26 years.

Unfortunately, if you start taking out lump-sum distributions in addition to the stream of payments, you may deplete your balance much more quickly.

A 10% average return can still produce poor outcomes if losses occur early in retirement, because withdrawals during down markets permanently reduce the number of shares left to recover. This is known as sequence-of-returns risk.

For that reason, retirees should test their TSP election against conservative return assumptions, inflation-adjusted withdrawals, income taxes, Medicare premium thresholds and the possibility of a very long retirement.

These examples do not guarantee these projections or recommendations! Try this calculator from USAA to help gauge how long your savings may last using estimated rates of inflation, your tax bracket and estimated rate of return.

Too much risk? Consider the life annuity

A TSP life annuity converts part or all of your account balance into guaranteed monthly payments for life through the TSP annuity provider. The primary advantage is longevity protection: Payments continue even if you live far longer than expected.

It can also reduce the pressure of managing investments in retirement and may be useful for someone who wants more guaranteed income in addition to a FERS or CSRS pension and Social Security.

There is a big trade-off to these advantages. Once TSP money is used to purchase a life annuity, you give up control. The payment amount depends on the purchase amount, age, interest-rate environment and selected features.

A single-life annuity may pay more each month than a joint-life annuity, but payments can stop at your death unless a qualifying feature is elected. A joint-life annuity can protect a spouse or other eligible joint annuitant, but the monthly payment is usually lower because the insurer may have to pay for two lifetimes.

Inflation is another key issue. Level payments start higher but remain the same, so purchasing power can decline over time. Increasing payments start lower but rise by a stated percentage each year, which may help offset inflation, although the increase may not fully match actual living-cost increases.

Retirees should also understand beneficiary features, such as cash-refund or certain-period options, because adding protection for heirs can reduce the monthly income. Here are some of the options with the key pros and cons:

Single life annuity with level payments provides the highest starting monthly income and the payments will last as long as you do, but there will be no continuing payment to your survivors unless you add additional features, and your purchasing power will be eroded over time since the payments will not increase.

Single life annuity with increasing payments provides a lower starting payment but will increase over time by a 2% annual adjustment that will help reduce some of the risk of inflation. However, these increases may not keep pace with actual inflation.

Joint life annuity with spouse and increasing payments will provide lifetime income for two lives with payments that rise over time. Typically, the lowest starting income of these examples is because it combines survivor protection with increasing payments.

Remember that electing a 50% survivor option will pay 50% of the payment to the survivor (not “your” survivor). Full payment is only paid while you are both living. To keep the payment level over both lifetimes, a 100% survivor election is available with or without the increasing payment option added.

The following illustration assumes $250,000 is used to purchase a single-life, level-payment TSP annuity. There is no payment to your beneficiary regardless of how long you survive after the annuity begins unless you add the “10-year certain” feature or “cash refund” feature, which would reduce these estimates.

This example uses the current August 2026 TSP annuity interest-rate index of 4.95% as the basis for the comparison, but the figures should still be treated as estimates rather than exact quotes. Actual TSP annuity payments depend on the participant’s exact age at purchase, the annuity provider’s factors, the option selected, whether increasing payments or refund features are added and the rate in effect when the annuity is purchased.

If a single life annuity is purchased at age 50, the monthly payment would be $720 and over 30 years, you would receive approximately $259,200. Over 10 years, the annuity would pay only $86,400.

If purchased at age 60, the monthly payment would be $1,095 and over 30 years, you would receive approximately $394,200. Over 10 years, the annuity would pay only $131,400.

This comparison highlights the longevity trade-off. A younger retiree generally receives a smaller monthly payment because the insurer expects to pay for more years. If that retiree lives long enough, the cumulative payments can eventually exceed the original $250,000 purchase amount.

However, if death occurs early and no refund or survivor feature was elected, the retiree may receive far less than the amount used to buy the annuity. Adding refund protection, survivor protection or increasing payments can change the result and usually reduces the initial monthly income.

You can use the TSP Annuity Calculator to try this for yourself.

TSP distributions can also affect Medicare Part B and Part D premiums through the income-related monthly adjustment amount, commonly called IRMAA. Medicare uses modified adjusted gross income from a prior tax year to determine whether higher-income beneficiaries owe surcharges.

A large TSP withdrawal, Roth conversion or RMD year can therefore increase Medicare costs two years later. This does not mean distributions should always be minimized, but it does mean retirees should model the after-tax and after-premium result before taking a large payment.

If your modified adjusted gross income as reported on your IRS tax return from 2024 is above $109,000 if you file an individual tax return or above $218,000 for those filing a joint return, you’ll pay the standard Part B premium of $202.90 (2026) and an income-related monthly adjustment amount.

Estate planning issues after retirement

Estate planning should also be part of the TSP distribution decision. Beneficiary designations generally control who receives the account at death, so retirees should review them regularly and coordinate them with a will, trust, life insurance, pension survivor election and family circumstances.

This review is especially important after marriage, divorce, the death of a spouse, the birth of grandchildren or a blended-family change.

Retirees should also consider whether a surviving spouse or other beneficiary will need continued income. A withdrawal strategy that works during a couple’s joint lifetime may not be sufficient if one spouse dies and household income changes.

Traditional TSP balances are generally taxable when distributed to beneficiaries, so leaving a large account to adult children can create income-tax consequences for heirs, particularly if they are already in high-earning years. A spouse may have more flexibility than a non-spouse beneficiary, and an IRA rollover may offer additional beneficiary-planning tools in some cases.

The TSP annuity election also has estate-planning consequences. Money used to purchase a single-life annuity may no longer be available to heirs unless a refund, survivor or certain-period feature is elected.

Those protections can help address survivor or legacy goals, but they usually reduce the starting monthly income. Retirees should balance guaranteed lifetime income against the need for liquidity, long-term care expenses and the desire to leave assets to family or charity.

Trust planning may be appropriate when beneficiaries are minors, have disabilities, struggle with financial management or are part of a blended-family plan, but retirement accounts and trusts require careful tax drafting.

Charitable planning should also be coordinated, because taxable retirement assets may be better suited for charitable gifts than after-tax assets. In short, the TSP should not be treated only as an income source. It is also an estate-planning asset that should fit with the retiree’s broader tax, legal and family goals.

Should I stay or should I go?

The IRA-versus-TSP decision is rarely all-or-nothing. Leaving money in the TSP may preserve low-cost investment access, the G Fund, creditor protections, simplicity and certain penalty exceptions.

Rolling money to an IRA may provide broader investment choices, more flexible beneficiary planning, qualified charitable distribution options, professional account management or coordinated Roth conversion strategies. However, IRAs can also carry higher costs, sales incentives, more complicated investment choices and different protection rules.

A direct rollover can avoid current taxation when moving traditional TSP money to a traditional IRA, but an indirect rollover, missed deadline or Roth conversion can create taxable income.

A qualified financial professional can help compare TSP distribution choices, but the selection should be made carefully. The right advisor should understand federal benefits, TSP withdrawal rules, the FERS or CSRS pension, Social Security claiming, Medicare premium thresholds, beneficiary planning and the tax impact of traditional and Roth withdrawals.

This is especially important because TSP elections often interact with several other retirement decisions at the same time. Ask whether the professional you are considering acts as a fiduciary, how they are paid, what credentials they hold and whether they have specific experience working with federal employees.

Fee-only, fee-based, commission-based and insurance-licensed professionals may all provide different services, but their compensation structures and potential conflicts should be clear. It is also wise to ask whether the advisor will coordinate with a tax professional or estate planning attorney when the TSP decision involves Roth conversions, RMDs, trusts, charitable planning or large rollovers.

Before hiring someone, consider asking practical questions:

Have you worked with federal retirees before?

Can you compare leaving money in the TSP with rolling assets to an IRA?

Will you provide a written analysis of taxes, Medicare effects, survivor needs and investment risks?

Do you recommend specific products, and if so, how are you compensated? Will I retain access to low-cost TSP options if I move money?

A good professional should be willing to explain both the benefits and drawbacks of each option, not simply recommend a rollover or annuity without showing how it fits the retiree’s broader plan.

Before making an election, here are five questions to consider:

How much income do I need now?

What tax bracket will this distribution create?

Could the distribution increase Medicare premiums?

Will I need penalty-free access before age 59½?

Am I giving up TSP features that are hard to replace?

The best TSP distribution strategy is the one that balances current income needs with tax efficiency, Medicare planning, longevity protection and flexibility. Because the consequences can last for decades, a careful review with a qualified tax or financial professional is often worth the effort before the election is submitted.

]]>

The state of play around the 2027 pay raise, or lack thereof

Erich Wagner — Thu, 06 Aug 2026 16:55:28 -0400

President Trump is expected sometime this month to issue a plan to freeze federal employee pay in 2027, though if last year was any indication, it may not be that straightforward.

When the White House published its fiscal 2027 budget proposal in April, the document, which normally lays out the administration’s pay plan for the following year, was silent on civilian compensation. The Office of Management and Budget later confirmed that Trump was in fact proposing “no pay increase” for 2027, while military service members would see between a 5% and 7% raise, depending upon their rank.

Trump now has until the end of August to formalize his alternative pay plan for next year; otherwise, much larger automatic increases in locality pay would take effect, due to a formula in the 1990 Federal Pay Comparability Act that has been criticized by presidents of both parties since its enactment.

Congress thus far has not taken action to overrule Trump’s pay plan. The House’s fiscal 2027 financial services and general government appropriations bill is silent on federal employee pay—effectively endorsing the president’s plan. And while the Senate has not yet published its draft of the FSGG funding bill, lawmakers in that chamber have proposed reducing the military pay raise to an across-the-board 3.6% raise as part of its proposed 2027 National Defense Authorization Act.

Democrats in both the House and Senate have called for a more fulsome raise of 4.1% on average next year, as part of their annual advocacy for the Fair Adjustment of Income Rates Act. Under that plan, civilian federal employees would receive a 3.1% increase in basic pay, coupled with an average 1% increase in locality pay.

While Trump is expected to formalize his plan for a pay freeze later this month, it’s not a sure thing. Last year, the president’s so-called “skinny” budget was also silent on federal employees pay, while OMB documents to agencies instructed them to plan for a pay freeze in 2026.

But ultimately, the president’s alternative pay plan enacted a 1% across-the-board increase in basic pay and no increase in locality pay for most workers. Feds in “law enforcement” fields were granted a 3.8% raise, in line with the increase afforded to military service members in 2026.

More changes to federal compensation could be in the offing in the coming months, as the Office of Personnel Management has signaled it plans to issue new regulations governing the locality pay system.

]]>

Former feds have a new way to find their personnel files

Tammy Flanagan — Thu, 06 Aug 2026 15:00:00 -0400

One of my colleagues, retirement benefits expert Michele Bollier, who answers emails from members of the National Active and Retired Federal Employees Association, was helping a retiree and discovered more good news coming from the Office of Personnel Management.

The agency has taken an important step toward modernizing access to federal personnel records with a new resource called the eOPF Resource Center and the recent launch of the eOPF Documents Request Service.

The electronic Official Personnel Folder, or eOPF, began 20 years ago when the National Finance Center payroll provider started sending SF-50s, Personnel Action Statements, and transactions to the eOPF system for processing. Scanned documents from paper Official Personnel Folders began being added to eOPF in 2007. Two decades have passed since the Commerce Department implemented an e-government initiative that provided easier and faster access for current employees to their personnel files.

Now, if you are a former federal employee or retiree looking for personnel records from your eOPF, there is a new and faster way to request them.

For current and former federal employees, the “electronic Official Personnel Folder,” or eOPF, is more than an administrative archive. It is the official record of federal employment, containing documents such as SF-50s, appointment and separation actions, position changes, benefits-related forms and other records that may be needed years after someone leaves government service.

For many former employees, getting these records has historically been frustrating. Once an employee separated, online access to the agency eOPF system generally ended, leaving the former employee to contact a previous agency human resources office or submit a written request to the National Personnel Records Center.

OPM’s new resources are designed to make that process clearer and, for many people, faster.

The most significant new resource is the Documents Request Service, a secure, public-facing portal. The service allows eligible separated federal employees to request and receive a copy of their eOPF employment folder electronically.

OPM describes the tool as a self-service option that eliminates the need for former employees to rely on government networks, agency-issued credentials or manual paper-based fulfillment methods when their records are already maintained in eOPF.

Being a former federal employee, I decided to try out this new service. I had my doubts since I left federal service in 1988 and doubted that anyone had scanned my old personnel records into the eOPF system. I was right: There were no records.

However, I was reminded that to sign into the Login.gov system, you will need to scan your driver’s license or passport into the system and then provide your Social Security number as further identification that it is you who is trying to log in.

If you are informed that the system could not find your records, you should check the information you entered and try again. Common mistakes are an incorrect Social Security number or ZIP code. You can try it four more times. Then you must wait six hours before trying again.

The service is intended primarily for separated federal employees whose records are in eOPF. It may also be used by current federal employees who do not have government-furnished equipment, a PIV card, a government email address or secure access to their agency’s eOPF system.

It is not intended for current employees who already have normal access through their agency, third-party requesters, the public or individuals whose records were never maintained in the eOPF system.

Former employees who want to use the Documents Request Service should generally wait at least 30 days after their separation date before submitting a request. OPM advises this waiting period because final separation documents, including the SF-50 documenting separation, may not be profiled into the eOPF immediately. Requesting too early could result in an incomplete folder.

OPM’s user guidance says the file should be downloaded and saved promptly because the link expires after 24 hours. The password format described in OPM’s guide uses the employee’s date of birth and the last four digits of the Social Security number.

Because the file contains sensitive personnel information, former employees should save it in a secure location and avoid forwarding it through unsecured email.

In case your records can’t be retrieved through this new system, OPM points users to more traditional options: Contact the former employing agency or request records from the National Personnel Records Center. NPRC maintains official personnel folders for many former federal civilian employees whose service ended after 1951. These records remain subject to the Privacy Act, so access is restricted.

The person of record may request copies of most civilian personnel records, including SF-50s, by submitting a written, signed and dated request. The request should include identifying information such as full name, date of birth, Social Security number, last employing agency, duty station, approximate dates of employment and a clear description of the records needed.

Timing is important here as well. NPRC guidance notes that OPFs are generally retired to the center after separation. If not enough time has passed, the former employee may need to contact the last employing agency instead.

OPM’s post-separation FAQ also explains that eOPF records are often transferred from the former agency to NPRC within 30 to 60 days after the separation action is processed, though an agency may retain the eOPF longer. If the agency still has the folder, it may be required to provide physical copies upon request.

For older personnel records, former employees should understand the difference between non-archival and archival OPFs.

NPRC’s Federal Records Center Program maintains OPFs for former federal civilian employees whose employment ended after 1951. These files generally remain in OPM’s legal custody and are protected by the Privacy Act, which means the person of record, or an authorized third party with signed consent, is usually the proper requester.

Civilian employment records are normally transferred to NPRC within 120 days after separation. If fewer than 120 days have passed, the employee should write to the last employing agency instead.

A written NPRC request should be signed and dated and should clearly identify the records needed, such as the most recent SF-50 or the complete official personnel folder. To help NPRC locate the file, the request should include the full name used during federal employment, date of birth, Social Security number if applicable, employing agency name and location, duty station and approximate beginning and ending dates of service.

Records for federal civilian employees whose service ended before 1952 follow a different archival access process through the National Archives. Those older OPFs may be handled as archival holdings rather than current federal records, so requesters should use National Archives guidance for archival civilian personnel folders.

In practical terms, a former employee seeking older records should first determine the approximate separation date: After 1951 generally points to NPRC’s non-archival OPF process, while before 1952 points to the archival OPF process.

Access to personnel records is not just a matter of convenience. Former employees may need their SF-50s and related documents to verify prior federal service, apply for another federal position, resolve pay or leave questions, support a retirement or benefits claim, confirm military service credit or assist with a security clearance review.

Having an easier electronic path to these documents can reduce delays at moments when former employees may be facing deadlines or life transitions.

The new eOPF resources also reinforce a best practice: Employees should review and download important records before leaving federal service whenever possible. It is much easier to identify missing or incorrect documents while still employed and while agency HR staff can correct problems directly.

Before separation, employees should check key documents such as SF-50s, service computation dates, beneficiary forms, military deposit records, retirement coverage and benefits elections. Any discrepancies should be raised with HR before access ends.

OPM’s updated eOPF Resource Center and Documents Request Service give former federal employees a clearer roadmap for obtaining personnel records after leaving government. The best approach is to start with the new portal if eligible, wait long enough for final separation documents to be added, download the completed folder promptly and keep the records secure. If the portal cannot locate the folder, the next step is to contact the former agency or submit a written request to NPRC. Together, these resources should make it easier for former employees to prove their service, protect their benefits and manage federal employment records long after their last day on the job.

]]>

TSP investments continued to tumble in July

Erich Wagner — Tue, 04 Aug 2026 14:22:19 -0400

Most funds offered as part of the federal government’s 401(k)-style retirement savings program finished July in the red, continuing the downward trend that began the prior month.

Only the Thrift Savings Plan’s G Fund, which is made up of government securities, grew last month, increasing by its statutorily mandated rate of 0.39%. So far this year, the G Fund has gained 2.57% in value.

The common stocks of the C Fund were virtually flat in July, falling 0.07% and bringing its 2026 performance down to 10.13%. And the international (I) fund lost 1.01% last month; since January, the I Fund is up 15.35%.

The small- and mid-size businesses of the S Fund finished July 4.12% in the red. So far this year, the S Fund has gained 13.52%. And the fixed income (F) Fund lost 1.29% last month, bringing its 2026 losses to 0.56%.

Each of the TSP’s lifecycle (L) funds, which shift toward more conservative investments as participants approach retirement age, likewise lost ground in July. The L Income Fund, designed for those who have already begun making withdrawals, fell 0.06%; L 2030, 0.41%; L 2035, 0.57%; L 2040, 0.66%; L 2045, 0.73%; L 2050, 0.79%; L 2055, 0.92%; L 2060, 0.92%; L 2065, 0.92%; L 2070, 0.92%; and L 2075, 0.92%.

So far this year, the L Income Fund has grown 5.18%; L 2030, 7.89%; L 2035, 8.93%; L 2040, 9.48%; L 2045, 10.45%; L 2050, 12.36%; L 2055, 12.36%; L 2060, 12.36%; L 2065, 12.36%; L 2070, 12.36%; and L 2075, 12.36%.

]]>