The FED Weekly

The FED Weekly 29 Mar - 4 Apr 2026 (Episode 44)
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[00:00:00] Weekly Briefing Intro
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Welcome to The FED Weekly for 29 March to 4 April 2026, 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.

[00:00:44]  Issues That Affect Current and Retired Federal Workers
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Issues That Affect Current and Retired Federal Workers

The Rise of "Schedule Policy/Career" and the MSPB

[00:00:52] Schedule P C Explained
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The most significant story this week involves a major structural change to the civil service. On 02 April 2026, [00:01:00] new reports surfaced regarding the implementation of the "Schedule Policy/Career" (or Schedule P/C) designation. This is the successor to what many of you remember as "Schedule F."

According to coverage from Government Executive updated on 02 April 2026, the Merit Systems Protection Board (MSPB) has recently made a quiet but monumental shift. Traditionally, if an agency tried to move your job from the "competitive service" (where you have high job security) into an "excepted service" category (where you can be fired more easily), you could appeal that move to the MSPB.

However, as of this week, the MSPB has amended its regulations to eliminate the right to appeal these reclassifications. This means if your position is moved into Schedule P/C, you may no longer have a legal avenue to fight that change through the MSPB. For current workers, this is a job security nightmare. For retirees, it matters because the [00:02:00] stability and apolitical nature of the agencies managing your benefits—like the Office of Personnel Management (OPM)—could be shifted toward a more political workforce.

[00:02:09]  The Health Care Premium Reality Check
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The Health Care Premium Reality Check

Even though we are in the middle of the 2026 plan year, this week saw a surge in "look-back" analysis regarding the Federal Employees Health Benefits (FEHB) program. News coverage on 31 March 2026 highlighted that while the 12.3 percent premium increase for 2026 was slightly lower than the previous year's 13.5 percent, the "sticker shock" is finally hitting bank accounts in full force this spring.

For both active workers and retirees, the 2026 plan year brought a significant policy shift: the removal of coverage for gender transition services. OPM confirmed in updated guidance that carriers are now required to remove these providers from their directories. As we [00:03:00] moved through this first week of April, employee unions have been vocal about the impact of these coverage subtractions paired with double-digit premium increases.

[00:03:10]  Issues That Affect Retired Federal Workers
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Issues That Affect Retired Federal Workers

[00:03:13]  The 2027 COLA Outlook: Early Warnings
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The 2027 COLA Outlook: Early Warnings

On 01 April 2026, new economic data began circulating that gives us our first real "weather report" for the 2027 Cost-of-Living Adjustment, or COLA. While the 2026 COLA was set at 2.8 percent for CSRS and 2.0 percent for FERS, the inflation trends tracked during this last week of March suggest that 2027 could see a "cooling" effect.

Market analysts and retiree advocacy groups noted on 02 April 2026 that if the Consumer Price Index (CPI-W) continues its current trajectory, the 2027 adjustment might drop below the 2 percent mark. This is a critical threshold because of the "FERS Diet COLA." [00:04:00] Remember, if inflation is 2 percent or less, FERS retirees get the full amount. If it goes higher, you get less than the full CPI. For those of you in the FERS system, a lower inflation year actually means you won't be "gapped" by that 1 percent difference that hits when inflation is high.

[00:04:18] Social Security Fairness Update
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The "Social Security Fairness Act" One Year Later

We are now a little over a year into the implementation of the Social Security Fairness Act (Public Law 118-XX), which was signed into law on 05 January 2025. This law famously eliminated the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).

During the week of 30 March 2026, the Social Security Administration (SSA) issued updated processing reports. For federal retirees who spent decades seeing their Social Security checks slashed because they also had a federal pension, the full restoration of benefits is now standard. However, the news this week [00:05:00] focused on "survivor benefit" adjustments. Many retirees who lost their spouse’s Social Security benefits due to the GPO are seeing their first full year of uncapped payments. Advocacy groups noted on 03 April 2026 that this has been the single most significant "wealth transfer" back to federal retirees in a generation.

[00:05:21]  Issues That Affect Current Federal Workers
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Issues That Affect Current Federal Workers

[00:05:24]  The 2027 Pay Raise: The FAIR Act Gains Momentum
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The 2027 Pay Raise: The FAIR Act Gains Momentum

It is never too early to talk about your next raise. On 31 March 2026, legislative trackers showed an increase in co-sponsorship for the Federal Adjustment of Income Rates (FAIR) Act.

As we saw in late March updates, the FAIR Act—sponsored by Senator Brian Schatz and Representative James Walkinshaw—is calling for an average 4.1 percent pay increase for the 2027 calendar year. This would break down into: a 3.1 percent across-the-board increase, and an [00:06:00] average 1.0 percent increase in locality pay.

Union leaders, specifically from the National Treasury Employees Union (NTEU), spent the week of 30 March 2026 lobbying for this bill. They argue that with the 12.3 percent jump in health care premiums we saw this year, a 4.1 percent raise is the bare minimum needed to keep federal salaries competitive with the private sector.

[00:06:26] Telework Worksite Rules
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Telework and the "Agency Worksite" Directive

Telework remains the most contentious "non-pay" issue in the federal government. On 01 April 2026, the Department of Health and Human Services (HHS) released an updated internal instruction (Instruction 990-3) regarding their Telework Program.

This update, which became a major talking point in the capital this week, clarifies that telework is not a right, but a management discretion under 5 U.S.C. 7106(a). The most important detail for [00:07:00] current workers? The "90-day rule." HHS and other agencies are reinforcing that the geographical area for new hires cannot be changed within 90 days of appointment.

Furthermore, the updated policy issued this week warns that any failure to report to the "agency worksite" when directed—even if you have a telework agreement—can result in the immediate "recoupment of overpayment of locality pay." In short: if the agency says "come in," and you don't, they are now signaling they will take back the extra locality pay you earned while working from a lower-cost area.

[00:07:36] Wrap Up and Next Week
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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. Be sure to subscribe wherever you get your podcasts, so you never miss an [00:08:00] update.

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.