In this week’s episode of The FED Weekly, Lawrence covers urgent updates for federal employees and retirees. The 2025 Federal Employees Health Benefits Program premiums are set to rise by a historic 13.5%, the most significant increase in almost 20 years, while dental and vision plan hikes are more moderate. With government funding still stalled in Congress and a potential government shutdown looming, federal workers face job uncertainty and possible income disruption, though annuity and Social Security payments will continue. The projected 2026 COLA suggests a 2.5–2.6% increase for CSRS retirees and a capped 2% for most FERS retirees. New bipartisan legislation (the FORWARD Act) aims to let certain military retirees and disabled veterans contribute to Thrift Savings Plan accounts post-service.

Meanwhile, the President’s 2026 budget proposes just a 1% pay raise for civilian employees, with 3.8% targeted for some law enforcement—drawing union criticism. OPM is overhauling performance awards to reward top performers more heavily. Updates also include the IRS reversing layoff plans, clarification on probation periods, and the status of retirement and pay-performance reform bills. The episode encourages listeners to stay informed about these fast-changing federal policies.