The FED Weekly

Lawrence: Welcome to The FED Weekly for
7 - 13 September 2025, your essential

weekly briefing on the policies
and proposals shaping your career,

your benefits, and your retirement.

Whether you’re a current federal employee
navigating changes in the civil service,

or a retiree keeping a close watch on your
hard-earned pension and healthcare, this

is your source for the latest news from
Capitol Hill and the executive branch.

Each week, we cut through the noise to
bring you the critical updates on budget

negotiations, pay raises, workforce
policies, and the legislative battles that

directly impact the federal community.

Let's get you up to speed on
what happened this past week.

Issues That Affect Current
and Retired Federal Workers

Legislative Actions on Social
Security and Retirement Planning

This week saw a flurry of activity
in Congress directly related to the

Social Security program, a system
that provides a critical financial

foundation for millions of retired
federal workers and their families.

Two significant bills were introduced,
each addressing different facets of

the program's operation and future.

On 10 September 2025, a bipartisan
effort led by Representatives Lloyd

Smucker of Pennsylvania and Don Beyer
of Virginia resulted in the introduction

of the Claiming Age Clarity Act.

This legislation is designed to help
older Americans make more informed

financial decisions about when to begin
claiming their Social Security benefits.

The bill seeks to modernize the
terminology used by the Social Security

Administration, replacing what lawmakers
have described as "bureaucratic jargon"

with more straightforward language.

Specifically, the bill would change
"Early Eligibility Age" to "Minimum

Benefit Age," "Full Retirement Age" to
"Standard Benefit Age," and "Delayed

Retirement Age" to "Maximum Benefit Age".

The proposed changes are a direct
response to the complexity many people

face when navigating a financial
decision that has lifetime consequences.

By renaming the key claiming ages, the
bill aims to more clearly communicate

the financial trade-offs of each choice.

For example, the new term "Minimum
Benefit Age" for age 62 would

highlight the fact that claiming at
this point can result in a permanent

benefit reduction of up to 30 percent.

The change from "Full Retirement Age" to
"Standard Benefit Age" provides a clear

baseline, while the new "Maximum Benefit
Age" for age 70 would underscore the fact

that delaying until that point can result
in a benefit increase of up to 24 percent.

The legislation has received support
from major advocacy groups, including

AARP, which noted that the bill "will
provide American workers with better

and more understandable information" to
help them make more informed choices.

A second piece of legislation, the
Keep Billionaires Out of Social

Security Act, was introduced
on 10 September 2025 by U.S.

Senators Mark R.

Warner and Tim Kaine of Virginia, along
with 27 of their Democratic colleagues.

This bill is framed as a measure to
protect Social Security from what

its sponsors describe as "harmful
actions" by the administration.

The legislation's provisions
would directly address several

operational and access issues.

It proposes to prohibit the closure
or relocation of Social Security field

offices, preventing what the bill's
supporters believe would be a reduction

in service and a loss of employees.

Furthermore, the bill would provide
a $5 billion increase in funding to

the Social Security Administration,
aimed at improving customer service,

modernizing technology, and reducing the
substantial backlogs that currently exist.

The bill also seeks to restore assistance
for vulnerable and disabled individuals

and to safeguard Americans' data.

The introduction of this bill
suggests a fundamental conflict

over the operational future of the
Social Security Administration.

The bill's provisions, particularly
the prohibition on office closures,

signal a political counter-movement
to what may be an administrative push

for a more streamlined, digital-first
approach to government services.

This legislative effort to preserve
the physical presence and human

element of Social Security services
underscores a widespread concern

that efficiency-driven reforms
could inadvertently leave vulnerable

populations without essential support.

The Economic and Fiscal Outlook

Beyond the legislative sphere, the
economic and fiscal climate is a major

factor for all federal employees.

On 07 September 2025, the Bureau
of Labor Statistics released

its August jobs report, which
showed a weak economic picture.

The U.S.

economy added only around 22,000
jobs, marking a second consecutive

weak month of job growth.

The unemployment rate also rose to 4.3

percent, with over 25 percent of
unemployed workers having been

jobless for more than six months,
a level not seen since June 2016.

The report's commentary suggests that
these poor economic numbers are not a

separate force but are directly linked
to the federal government's own actions.

The report specifically attributes
the weak performance to "mass layoffs

from the federal government" and the
"reverberating impact of cancelled

federal grants and contracts".

This analysis indicates that
the administration’s decisions

regarding workforce and spending
are actively contributing to

the broader economic downturn.

The government is not merely a
passive observer of the economy;

its fiscal and personnel policies
are shaping it in a tangible way.

This economic backdrop is particularly
relevant in light of the ongoing

congressional stalemate over funding.

Congress has yet to approve any of
the appropriations bills necessary

to fund federal agencies for the
fiscal year beginning on 01 October.

This sets up the very real possibility
of a government shutdown, which would

impact both current and retired workers.

While federal employee and retiree
benefits from programs like

Social Security are generally
insulated from a shutdown, the

administrative infrastructure
and support systems are not.

A shutdown could lead to a halt in
the processing of new claims and a

reduction in customer service, affecting
the very access points that the

Keep Billionaires Out of Social
Security Act is trying to protect.

The political dynamics of
this situation are complex.

Congressional Republicans may
propose a short-term continuing

resolution that would freeze federal
budgets at fiscal 2024 levels.

However, Senate Democrats may reject
such a proposal unless it is for a

limited duration and includes safeguards
to ensure the administration spends

the funds as stipulated by Congress.

Further complicating matters is
the administration's potential use

of a maneuver known as a "pocket
recission" to cancel funds that

Congress has already approved.

This would directly affect agency
budgets and programs, creating a volatile

and uncertain environment for federal
workers and the services they provide.

Issues That Affect Retired Federal Workers

This week’s news for retired
federal workers revolves around

the two significant legislative
developments in Congress.

While we touched on them in the first
section, it is essential to explore their

specific implications for retirees, for
whom these issues are not just policy

matters but are fundamental to their
financial security and quality of life.

The Claiming Age Clarity Act is
more than a simple name change; it

is a critical piece of legislation
aimed at protecting retirees from

an information-based failure.

The current terminology, which
includes "Early Eligibility Age," can

unintentionally encourage people to
begin claiming benefits as early as

possible without fully grasping the
permanent financial consequences.

By introducing the term "Minimum Benefit
Age," the bill would make it explicitly

clear that claiming at age 62 is the
lowest possible benefit an individual can

receive, a distinction that is crucial
when that decision can result in a

permanent reduction of up to 30 percent.

Conversely, the change from "Delayed
Retirement Age" to "Maximum Benefit Age"

would serve as a powerful signal to those
who have the financial ability to wait.

The new name highlights the significant
financial gain—up to 24 percent more than

the standard benefit—that can be achieved
by delaying retirement until age 70.

This bill, therefore, is a proactive
measure to ensure that retirees and

those nearing retirement have a clear
understanding of the financial stakes,

helping them avoid costly, irreversible
decisions that could impact their

income for the rest of their lives.

Similarly, the Keep Billionaires Out
of Social Security Act addresses an

operational challenge that directly
affects the daily lives of retirees.

While many financial transactions
are now digital, a large segment

of the retired population relies on
in-person assistance for complex issues.

The potential closure or relocation
of Social Security field offices would

create significant barriers to access
for many, particularly those who are

not technologically savvy, have limited
internet access, or have disabilities

that make remote interactions challenging.

The bill’s provision to prohibit
these closures is a clear statement

that physical access and the human
element of public service are not

outdated conveniences but are essential
components of the social safety net.

The proposed $5 billion funding
increase would also be directly

felt by retirees, as it is intended
to reduce backlogs and improve the

overall customer service experience
at the Social Security Administration.

For millions of retirees, the
ability to speak to a real person and

receive timely assistance is not a
luxury but a fundamental necessity.

Issues That Affect Current Federal Workers

The Overhaul of Federal Hiring

The U.S.

Office of Personnel Management, or OPM, is
implementing a fundamental restructuring

of the federal hiring process, which it
describes as the "Merit Hiring Plan".

The week's announcements reveal
two key pillars of this initiative.

On 05 September 2025, OPM announced the
new "Rule of Many," which replaces the

more than 150-year-old "rule of three".

This new rule allows agencies
to select from a broader pool

of top-ranked candidates based
on skills-based assessments.

It replaces the previous rigid "category
rating" system, giving hiring managers

the flexibility to rank candidates
using "cut-off scores, a set number,

or a percentage of top applicants".

According to OPM Director Scott Kupor,
this change aims to bring in the most

capable people to serve the public.

This reform is not an isolated
policy but is part of a larger,

coordinated effort to modernize the
entire talent acquisition process.

This became even clearer with OPM's
announcement of a two-page resume

standard for federal job applications
submitted through USAJOBS, which will

take effect on 27 September 2025.

This change is also a key highlight
of the Merit Hiring Plan and is

designed to streamline the review
process for hiring managers by

ensuring they focus on the most
relevant qualifications and experience.

OPM has provided a transition period
and is offering updated guidance

and resume-building tools to assist
applicants in meeting the new standard.

These two changes, when viewed
together, represent a top-to-bottom

re-engineering of how the federal
government recruits and selects its

workforce, shifting the focus toward
a more skills-based and agile model.

The Battle for Pay and Labor Rights

The issue of federal employee pay
for 2026 remains a contentious topic.

On one side is President Trump’s
alternative pay plan, which was

issued on 28 August 2025 and calls
for a one percent across-the-board

pay raise for most federal employees.

This plan also includes a freeze on
locality pay at its current levels.

A notable exception to this plan is for
some law enforcement occupations, which

would receive an overall raise of 3.8

percent to match the increase
expected for members of the military.

This proposal breaks with a long-standing
tradition of pay raise parity between

federal employees and the military.

The American Federation of Government
Employees, or AFGE, has countered

with a proposal of its own,
endorsing legislation in the House

and Senate that would provide a 4.3

percent pay adjustment in 2026.

AFGE’s rationale is that federal
salaries are, on average, 27 percent

below those for similar jobs in the
private sector, a gap that leads to

significant recruitment and retention
challenges, chronic understaffing,

and the outsourcing of work.

This week also saw a major development
in federal labor relations as the

administration announced it would "quit
arbitration in disputes that arose under

the now-cancelled labor contracts".

Arbitration is a process that
allows for the resolution of

workplace disputes through the
decision of a neutral third party.

The administration’s decision follows
its prior directive to end collective

bargaining for additional agencies
and is justified by a broad claim

of "national security concerns".

This action appears to challenge
a 1977 Supreme Court decision,

Nolde Bros.

v.

Bakery & Confectionary Workers
Union Local 358, which held that

the obligation to arbitrate "may
survive contract termination when the

dispute is over an obligation arguably
created by the expired agreement".

By refusing to arbitrate, the
administration is effectively removing

a key avenue for employees to seek
recourse for disputes, signaling a

significant shift in the balance of power
between federal labor and management.

In response to these actions, an update on
the Protect America's Workforce Act (H.R.

2550) was provided this week.

This bipartisan legislation aims
to overturn the administration's

executive order that stripped nearly
one million federal workers of

their collective bargaining rights.

To force a vote on the bill, a discharge
petition, known as Discharge Petition No.

6, is being circulated in the House.

As of 08 September 2025, the petition
has secured 214 of the 218 signatures

needed to bring the bill to the House
floor for an immediate vote, with the

possibility of a vote as early as October
if the remaining signatures are secured.

New Leave and Pay Provisions

Despite the high-profile battles over
pay and labor rights, federal benefits

management continues to be a focus.

An OPM memorandum provided guidance
on several important legislative

changes from the Servicemember
Quality of Life Improvement and

National Defense Authorization Act
for Fiscal Year 2025 (FY25 NDAA).

This memo clarifies several provisions
that have been in effect since the

act’s enactment on 23 December 2024.

One key change is the increase in
military leave accrual and maximum

carryover amounts under 5 U.S.C.

6323(a)(1) from 15 to 20 days.

This means that for fiscal year 2025,
employees could have as many as 35

days of military leave, with 15 days
carried over from the previous year

in addition to the new 20-day accrual.

For fiscal year 2026 and subsequent
years, employees can accrue 20 days and

carry over up to 20 days, giving them
a potential total of 40 days of leave.

The memo also extends the authority
for an agency head to waive the

annual premium pay cap for certain
federal civilian employees working

overseas through calendar year 2025.

The new annual limitation for
basic pay and premium pay allowed

under this waiver is set at the
official salary rate for the Vice

President, which is $289,400 for 2025.

Additionally, the discretionary
authority for an agency head to grant

allowances, benefits, and gratuities
to civilian personnel on official duty

in a combat zone has been extended
until the end of fiscal year 2026.

And that’s a wrap on this week’s
Federal Workforce Roundup.

The landscape for federal employees
and retirees is constantly shifting,

with major decisions being made about
everything from pay and job security

to retirement benefits and the very
structure of the civil service.

Staying informed is your best tool.

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Thanks for tuning in.

We’ll be back next week to
track the latest developments

and what they mean for you.

Until then, stay engaged and be well.