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Let me set the stage: it’s late June, the sun is baking down on D.C., and in my inbox, news alerts are pinging faster than I can read them. If you’ve ever felt your future hinge on a Congressional draft or a judge’s ruling—welcome to my world as a federal employee watcher. This week, I swapped my coffee for chamomile tea when I saw just how close some of our retirement benefits were to the chopping block (again). Yet, as it turns out, some of the biggest threats faded at the last minute, while new curveballs came out of nowhere. Buckle up for this week’s briefing: it’s a wild one.
The Almost-Apocalypse: Retirement Cuts That Weren’t (Yet)
Last week, it felt like we were all holding our breath as Congress debated some of the most dramatic changes to federal retirement benefits in years. For anyone following Federal retirement benefits updates, the headlines were alarming: proposals to eliminate the FERS annuity supplement for early retirees, force new hires into at-will status, and hike up pension contributions for current employees. It was a real “almost-apocalypse” moment for federal workers and retirees alike.
But here’s the twist—by the end of June, the Congressional budget reconciliation for federal employees looked a lot less scary. The Senate’s late-June draft quietly dropped the most severe cuts. That means, for now, there’s:
No FERS annuity supplement elimination—early retirees will still get their Social Security bridge benefit.
No forced at-will status for new hires—the Senate version left this out entirely.
No increase in FERS pension contributions—current employees won’t owe more to their retirement funds.
No union payroll tax fee—protecting unionized workers’ dues from a new financial hit.
To quote the mood on the Hill,
“The worst retirement benefit cuts in the House’s proposal appear off the table in this period.”
That’s a huge relief for both active and retired federal employees. The FERS annuity supplement elimination, in particular, would have hit early retirees hard, so seeing that proposal vanish (at least for now) is a win.
Of course, this isn’t the end of the story. Groups like NARFE advocacy for federal retirement benefits are keeping the pressure on Congress to make sure these cuts don’t sneak back in during later negotiations. NARFE and other retiree organizations have been vocal, urging lawmakers to safeguard the benefits that federal workers have earned over decades of service.
There were a few other positive developments, too. The Senate draft didn’t touch the “high-3” salary basis for pension calculations (no shift to “high-5”), and the controversial payroll tax fee on unions was removed—another win for unionized federal employees.
Meanwhile, the House Education and Labor Committee unanimously advanced a bipartisan bill (HR 3170) to modernize federal workers’ compensation. If it becomes law, injured federal employees will have more options for medical care, including treatment from physician assistants and nurse practitioners—not just doctors or chiropractors. This is a small but meaningful step forward for the broader federal workforce.
One issue that’s still simmering is the disparity in cost-of-living adjustments (COLAs) between CSRS and FERS retirees. The bipartisan Equal COLA Act (HR 491/S 624) is gaining support, but no new action was taken last week. Still, it’s clear that active and retired FERS annuitants are calling for parity—and lawmakers are listening.
For now, the “almost-apocalypse” of federal retirement cuts has been averted. But as always, vigilance and advocacy remain the name of the game.
Performance Pressure: New Rules, New Reality for Workers
If you work in a federal agency, you’ve probably felt the ground shift under your feet this June. With sweeping performance management reforms for federal agencies rolling out, the expectations for every employee—new or seasoned—are changing fast. Here’s what’s happening, and what it means for all of us on the inside.
Performance Ratings: Fewer “Exceeds Expectations”
On June 17, the Office of Personnel Management (OPM) released new guidance that’s already making waves. Agencies are now being told to limit how many employees can receive top performance ratings. In other words, “exceeds expectations” is no longer a box most of us can check. Only truly exceptional work will get that gold star, and managers are expected to make sure the majority of ratings fall in the “meets expectations” range.
But that’s not all. The new rules urge agencies to move quickly when it comes to underperformance. Managers are now directed to discipline or remove poor performers faster—especially in agencies that have recently lost some union protections. Unions have pushed back, saying this is a big change from what was negotiated in contracts. Still, as the memo puts it,
“At minimum, current workers should expect stricter performance evaluations and faster accountability processes.”
Probationary Period Rules: No More Automatic Career Status
Another major shake-up arrived on June 24, when the Federal Register published new probationary period rules for federal employees in 2025. Gone are the days when new hires simply became permanent after their probation ended. Now, agencies must actively certify that keeping a probationary employee is in the public interest. If not, the employee is let go—no more automatic pass.
This means supervisors can’t just let probation expire without action. They must review each new hire and make a clear decision. For new employees, this is an extra hurdle, and for agencies, it’s a push to “weed out poor fits earlier.” All HR policies across federal agencies are being updated to reflect this new reality.
Union Rights: A Major Win for Collective Bargaining
Amid all these changes, there was a big legal victory for union rights. On June 25, a San Francisco federal judge issued a nationwide injunction blocking President Trump’s 2025 executive order that would have stripped collective bargaining rights at dozens of agencies. The judge agreed with unions that this move likely violated federal law and free speech protections. For now, hundreds of thousands of federal employees can still negotiate working conditions through their unions—a critical protection as performance management reforms take hold.
Paid Administrative Leave: Under the Microscope
One more issue is drawing attention: paid administrative leave for federal employees. Reports show over 100,000 federal workers are on paid leave—often for much longer than the ten-day limit Congress intended. Watchdogs warn this may be unlawful, and advocacy groups have filed complaints about agencies putting employees on leave without clear cause. This surge in administrative leave is now under scrutiny, and it’s another sign that HR practices are facing tough questions in 2025.
Retiree Rollercoaster: COLA, Health, and the Chase for Parity
If you’re a retired federal employee, you know the ride never really stops. This past week, the headlines might not have screamed “crisis,” but the undercurrents in Congress kept retirees on edge—especially around cost-of-living adjustments for federal employees, the FERS annuity supplement, and federal employee health benefits updates. Here’s what stood out in the June 27-28 recap.
The COLA Gap: Still Waiting for Parity
Let’s talk about the elephant in the room: FERS retirees still get a lower cost-of-living adjustment (COLA) than their CSRS or Social Security peers. Unless new legislation like the Equal COLA Act (HR 491/S 624) passes, this gap isn’t closing anytime soon. The Equal COLA Act, introduced by Rep. Gerry Connolly and Sen. Alex Padilla, would finally align FERS COLA with CSRS and Social Security—no more 2% cap penalty when inflation spikes. But as of June 28, 2025, the bill remains stuck in committee. Advocacy groups like NARFE are making noise, but for now, “COLA parity remains unresolved.”
Retirees hoping for COLA reform will be watching whether that bill gains momentum later this summer.
So, if you’re a FERS annuitant, you’re still feeling the pinch. The push for the Equal COLA Act is heating up, but the finish line is nowhere in sight.
FERS Annuity Supplement: Cuts Off the Table (For Now)
Earlier drafts of the House reconciliation bill threatened to eliminate the FERS annuity supplement for early retirees and change the pension calculation from “high three” to “high five” years of salary. Retiree groups, especially NARFE, sounded the alarm, warning these cuts would break promises made to federal workers. Thankfully, the Senate’s latest version dropped both provisions. If this language holds, current and future retirees can breathe a sigh of relief—at least for now. But the issue isn’t dead; it could resurface in future negotiations.
Health Benefits: No Sudden Moves, But Watch for Fall
On the health care front, there’s been no new action on Federal Employees Health Benefits (FEHB) eligibility or premium changes. By law, 2026 FEHB rates will be set during open season this fall, so retirees should keep an eye out for updates. For now, the most recent data shows average government contributions increased by 10.1% for FEHB and 5.1% for PSHB. No late June announcements changed this, but with open season approaching, many retirees are bracing for another round of premium hikes.
FERS retirees: Still waiting for COLA parity—Equal COLA Act is stalled.
FERS supplement cuts: Off the table in the Senate, but not gone for good.
Health benefits: No immediate changes; 2026 rates set this fall.
Advocacy groups: Turning up the pressure for summer action.
For now, retirees have dodged the worst, but the fight for fairness—especially around COLA and health care costs—continues to simmer just below the surface.
‘What Ifs’ and Curveballs: Lesser-Known Bills & Legal Surprises
If there’s one thing I’ve learned covering federal workforce news, it’s that the biggest changes often start quietly—buried in committee markups or legal footnotes. This past week, the headlines focused on big-picture budget drama, but the real shake-ups for federal employees came from a handful of lesser-known bills and legal surprises. Let’s break down the curveballs you might have missed.
House Moves to Modernize Federal Workers’ Comp
First up: the House quietly passed HR 3170, a bill that could reshape the Federal Employees’ Compensation Act. This amendment, which cleared the House Education & Labor Committee unanimously on June 27, aims to expand care options for injured federal workers. Instead of being limited to traditional doctors, employees could soon access a wider range of care providers—think nurse practitioners and physician assistants. It’s a technical change, but for anyone who’s ever navigated the federal workers’ comp maze, it’s a big deal. These Federal Employees’ Compensation Act amendments might not make the evening news, but they could mean faster, more flexible care for thousands.
State Department Layoffs: On Hold, But Not Forgotten
Meanwhile, the State Department’s massive reduction in force for federal employees in 2025—which originally targeted over 30,400 jobs—remains on ice. State recently rewrote its RIF rules, carving out dozens of new competitive areas to make targeted layoffs easier. But as of June 28, a federal judge has blocked the cuts, and a Supreme Court decision (Trump v. Casa) just muddied the waters on nationwide injunctions. For now, as one official put it,
“In practical terms, federal employees currently have some protection against the administration’s proposed workforce cuts, at least temporarily.”
This legal limbo leaves current State Department workers in a holding pattern. The agency still plans to reduce 900 positions, but no pink slips are going out yet. The Supreme Court’s ruling limits broad injunctions but, crucially, leaves the lower court’s block in place for now. It’s a classic example of how legislative proposals affecting the federal workforce can shift overnight—sometimes with just a single court order.
Travel Perks, Administrative Quirks, and Summer Surprises
Not all surprises are seismic. The Federal Employee Train Transportation Act is floating around the House, promising new travel perks for feds—if it ever gets a floor vote. Meanwhile, agencies are grappling with more mundane issues: overuse of paid leave, and GSA’s annual summer electricity alert. (Yes, when policymakers start talking “energy curtailment” during a D.C. heat wave, you know it’s truly summer in government.)
HR 3170: Expands workers’ comp care options
State RIF: Layoffs paused, rules rewritten, legal fight ongoing
Train Act: Possible new travel benefits for federal employees
Admin quirks: Paid leave audits, energy curtailment notices
Sometimes, it’s the bills and legal twists you don’t see coming that matter most. This week proved that again—reminding us how quickly the ground can shift under federal employees’ feet.
One Eye on the Exit: Advocacy, Uncertainty, and Personal Survival Tips
If there’s one thing I’ve learned as a federal employee watching the headlines, it’s this: you can’t afford to zone out, even for a week. The landscape for federal retirement benefits and workplace life is always shifting—sometimes quietly, sometimes with a bang. This week’s Congressional budget reconciliation news is a perfect example. With the final reconciliation bill heading for Senate debate, NARFE advocacy and other groups are working overtime to protect what we’ve all worked so hard to earn. Their vigilance is our first line of defense, but personal vigilance is just as critical.
Let’s be honest—uncertainty is the only constant in federal service. Even small administrative tweaks can send ripples through your paycheck, health insurance, or retirement plan. I’ve seen colleagues get caught off guard by changes that seemed minor at first, only to realize later how much they impacted take-home pay or future benefits. That’s why I keep a dedicated calendar for key legislative dates, agency announcements, and the all-important open season. It’s a simple habit, but it means I’m never scrambling at the last minute or blindsided by a sudden shift.
Advocacy groups like NARFE are on the frontlines, keeping a close eye on every move in Congress that could affect federal employees and retirees. Their updates are a lifeline, especially when rumors start swirling. And let’s face it—rumors travel faster than facts in federal workforce circles. I’ve lost count of how many times I’ve heard wild stories about benefit cuts or job losses, only to find out later that the truth was far less dramatic. My rule of thumb? Always check the source before you panic. If it’s not coming from NARFE, your agency, or a trusted news outlet, take it with a grain of salt.
As we wait for the Senate to take up the reconciliation bill, the best thing you can do is stay engaged. Subscribe to updates from NARFE and other advocacy organizations. Set reminders for important dates. And most importantly, talk to your colleagues—sometimes the best information comes from those who are paying attention right alongside you. I’ve dodged more than one benefits scare just by double-checking the latest updates and sharing what I’ve learned with others.
In times like these, it’s easy to feel powerless. But remember: staying informed is your best tool. The ground under federal employees and retirees never stops shifting, so personal vigilance and community advocacy matter more than ever. Next week’s headlines could turn today’s relief into tomorrow’s panic—or, with luck, into a well-earned victory. So keep one eye on the exit, but both eyes on the facts. That’s how we survive—and thrive—in the ever-changing world of federal service.
