The FED Weekly

The conversation focused on major developments affecting federal employees and retirees for the week of September 20-26, 2026. A key theme that emerged was the debate over the proposed 2027 federal pay freeze, with a bipartisan congressional group urging leaders to match law enforcement’s 3.8% raise for all civilian employees and referencing broader recruitment and retention challenges. The discussion explored a major workforce lawsuit settlement, requiring the administration to retract reduction-in-force plans tied to the 2025 shutdown, and highlighted updates for retirees awaiting the 2027 COLA adjustment—projected near 3.5%—which will be finalized after October CPI data. Several points were raised, including OPM’s new performance management policy capping the top two ratings at 40%, tying higher ratings to larger awards, and increasing agency authority for approving substantial cash bonuses. The discussion also covered litigation over reservist differential pay dating back to 2009, as well as Air Force and Space Force plans to restore over 4,300 civilian positions after reassessing critical staffing needs.