The FED Weekly

(Ep 70) The FED Weekly 27 Sep - 3 Oct 2026
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[00:00:00] Weekly Briefing Kickoff
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Welcome to The FED Weekly for 27 September to 3 October 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] FEHB Premiums Jump 2027
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[00:00:44]  Issues That Affect Current and Retired Federal Workers
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Issues That Affect Current and Retired Federal Workers

2027 FEHB Premiums Are Here — Employees and Retirees Will Pay 10.9 Percent More on Average

The biggest benefits news this week arrived on 30 September [00:01:00] 2026, when the Office of Personnel Management released premium rates and plan information for the 2027 Federal Employees Health Benefits Program. Federal employees and retirees enrolled in FEHB will pay an average of 10.9 percent more toward their premiums in 2027. When the government's contribution is included, total FEHB premiums will rise by an average of 9.3 percent. The increase takes effect with 2027 coverage. Federal News Network

This is the third consecutive year in which the enrollee share of average FEHB premiums has increased by double digits. Employees and retirees paid an average of 13.5 percent more in 2025 and 12.3 percent more in 2026. OPM says several factors are contributing to the 2027 increase, including higher prices for hospital, physician, outpatient, and surgical services, along with increased [00:02:00] prescription-drug spending. OPM specifically identified spending on GLP-1 medications as one contributor to higher program costs. Federal News Network

The dollar impact will depend heavily on the plan and enrollment category. On average, employees enrolled in Self Only FEHB coverage will pay approximately 13 dollars and 37 cents more per biweekly pay period. Self Plus One coverage will increase by about 33 dollars and 87 cents, while Self and Family coverage will increase by approximately 40 dollars and 25 cents per pay period. Individual plans can vary substantially from these averages, making plan-by-plan comparisons especially important this year. Government Executive

[00:02:44] PSHB and FEDVIP Updates
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Postal employees and Postal Service retirees will see somewhat smaller average increases under the Postal Service Health Benefits Program. The enrollee share of PSHB premiums will increase by an average of 8.2 percent, while overall [00:03:00] PSHB premiums, including the government's contribution, will rise approximately 6.7 percent. Dental and vision increases are considerably smaller. Federal Employees Dental and Vision Insurance Program premiums will rise an average of 1 percent for dental coverage and 1.6 percent for vision coverage in 2027. Federal News Network

[00:03:22] Open Season Dates and Choices
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OPM also confirmed the available choices for next year. FEHB will have 45 participating carriers offering 118 plan options, while PSHB will have 17 carriers offering 65 options. FEDVIP will include 11 dental carriers offering 21 options and five vision carriers offering 10 options. Availability varies by location and eligibility, so those totals do not mean every employee or retiree can select every plan. The 2026 Federal Benefits Open Season runs from 9 November through 14 December 2026. U.S. Office of Personnel [00:04:00] Management

[00:04:01] Health Benefit Fraud Savings
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OPM Reports More Than $500 Million in Health-Benefit Fraud Prevention

Another benefits development arrived on 29 September 2026, when OPM and the White House Task Force to Eliminate Fraud announced results from anti-fraud efforts involving FEHB and PSHB. According to OPM, carriers stopped or reduced approximately 237.7 million dollars in claims before payment, prevented another 271.9 million dollars in losses through billing and policy changes, and recovered approximately 21.9 million dollars after payment. Together, those activities produced more than 500 million dollars in reported savings and prevented losses for calendar year 2025. U.S. Office of Personnel Management

For employees and retirees, the connection is straightforward because premiums are financed jointly by enrollees and the federal government. Fraudulent or improper claims contribute to program costs [00:05:00] even when an individual enrollee never encounters fraud personally. OPM says it is strengthening carrier oversight, data sharing, claims analytics, and early detection. This is related to, but distinct from, the controversial claims-data collection program discussed in Episode 68. This week's genuinely new development is OPM's release of specific financial results from its anti-fraud activities. U.S. Office of Personnel Management

[00:05:29]  Issues That Affect Retired Federal Workers
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[00:05:29] Retiree Open Season Strategy
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Issues That Affect Retired Federal Workers

Open Season Becomes More Important After the Premium Announcement

For federal retirees, the release of 2027 premiums changes Open Season from a future planning issue into something much more concrete. Retirees who maintain FEHB coverage should not assume that the 10.9 percent average increase describes their own plan. Some plans will increase less, while others will increase considerably more. OPM's [00:06:00] announcement also shows that the number and mix of plan options are changing, which means retirees should verify that their current plan remains available and review its specific premium, benefits, provider network, and prescription-drug provisions. U.S. Office of Personnel Management

For retirees enrolled in Medicare, comparing plans involves more than looking at the FEHB premium. Medicare coordination, prescription coverage, copayments, deductibles, reimbursement arrangements, and whether a plan offers Medicare-related incentives can materially change the total annual cost. Retirees covered through PSHB should perform the same comparison within that program. The important point is that existing FEHB, PSHB, and FEDVIP coverage generally continues automatically if no election is made, but automatic continuation does not necessarily mean remaining with the current option will be the most economical choice. U.S. Office of Personnel Management

[00:06:59] FSAFEDS Changes for 2027
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[00:07:00] One rule differs for the Federal Flexible Spending Account Program, although that primarily affects active employees rather than retirees. FSAFEDS elections do not automatically carry into the next benefit year. Eligible employees who want an FSA in 2027 must make a new election during Open Season. OPM is also introducing an optional FSAFEDS Visa FSA Card for 2027, allowing participants to pay eligible health, pharmacy, dental, and vision expenses at the point of sale rather than relying exclusively on the existing reimbursement process. U.S. Office of Personnel Management

[00:07:37] No New COLA Data Yet
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No New 2027 COLA Figure This Week

There is no new inflation figure to add to our 2027 federal retirement COLA calculation this week. We already covered the July and August CPI-W readings in previous episodes, so I will not repeat those calculations simply to fill space. The final piece remains the September CPI-W figure. [00:08:00] Once that number becomes available in October, we will be able to calculate the actual 2027 COLA for CSRS retirees and Social Security beneficiaries and determine the corresponding adjustment for eligible FERS retirees under the statutory FERS formula.

This distinction is worth maintaining because estimated COLAs can easily be mistaken for official figures when repeated week after week. Until the September CPI-W number is released, any percentage remains an estimate rather than the final adjustment. The next FED Weekly episode that discusses the COLA will therefore do so only if there is a genuinely new data point or official announcement. For retirees, this week's actionable benefits development is the release of the 2027 FEHB and PSHB premiums, not another projection of next year's COLA.

[00:08:51]  Issues That Affect Current Federal Workers
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[00:08:51] New Time to Hire Rules
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Issues That Affect Current Federal Workers

OPM Sets New Time-to-Hire Expectations

On 30 September [00:09:00] 2026, OPM issued new government-wide guidance on time-to-hire under the administration's Merit Hiring Plan. The broader plan established a goal of reducing the government's average hiring time from approximately 101 days to 80 days or less. OPM's newest guidance gives agencies additional direction for measuring and improving that process. The government is increasingly treating hiring speed as a measurable performance objective rather than simply an internal human-resources concern, with OPM collecting agency data and monitoring progress. U.S. Office of Personnel Management

OPM's definition is also important. The government-wide 80-day goal generally measures the period leading to an initial job offer rather than the employee's actual entrance-on-duty date. Security clearances, suitability reviews, credentialing, medical examinations, drug testing, and other preemployment requirements can extend the period between an [00:10:00] offer and an employee's first day. OPM has separately encouraged agencies to reduce those delays through better system integration, shared hiring certificates, pooled recruiting, and improvements in personnel-vetting processes. U.S. Office of Personnel Management

For applicants, the changes do not create a legal right to receive an offer within a particular number of days. Instead, the time-to-hire standards are management goals used to measure agency performance. OPM has also developed a more aggressive 45-day hiring model for portions of the process following closure of a vacancy announcement. The broader objective is to reduce lengthy periods during which qualified applicants may accept private-sector employment or other federal jobs before an agency completes its selection process. U.S. Office of Personnel Management

[00:10:53] New Federal Essay Questions
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Agencies Replace the Federal Job-Application Essay Question

There is also a material follow-up to the federal [00:11:00] hiring lawsuit covered in Episode 67. After a federal judge blocked the previous application question asking candidates to identify presidential executive orders or policy initiatives meaningful to them, OPM has directed agencies to use replacement language. Approximately 2,400 federal job announcements had incorporated the revised question by late September. Applicants are now asked for an example of implementing leadership direction on a strategy or policy decision that differed from their own recommendation. Federal News Network

OPM has also directed agencies to create another essay question based on agency-specific priorities. Those priorities can come from an agency strategic plan, annual performance plan, or another organizational objective. Agencies were required to submit their proposed wording to OPM by 30 September 2026 for review. For existing announcements that still displayed [00:12:00] the earlier question, OPM instructed agencies not to consider applicants' responses when evaluating candidates, rather than attempting to manually rebuild thousands of already-posted vacancy announcements in USAJobs and USA Staffing. Federal News Network

The distinction from last month's story is important. The court's 11 September order blocking the original question was already covered in Episode 67. This week's development is implementation: OPM and agencies are now changing active and future job announcements to comply with that order while retaining other essay requirements under the Merit Hiring Plan. The underlying litigation has not necessarily concluded, but applicants should increasingly see the revised language rather than the earlier question focused specifically on presidential executive orders and policy initiatives. Federal News Network

[00:12:56] Army Lifts Hiring Freeze
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Army Ends Its Civilian Hiring Freeze

The Army [00:13:00] has officially ended its civilian hiring freeze and resumed hiring, marking another significant change in the government's workforce-reduction cycle. The service had restricted civilian hiring while reviewing staffing requirements and reorganizing portions of its workforce. Army officials say the pause allowed the service to make progress in rebalancing its civilian workforce. The reopening does not mean unrestricted hiring will return everywhere; civilian hiring decisions will continue to reflect mission requirements, workforce plans, available funding, and the Army's broader personnel priorities. Federal News Network

This development is especially notable because Episode 69 reported that the Air Force and Space Force plan to restore thousands of civilian positions in fiscal year 2027 after staffing in some mission areas fell below validated requirements. The Army's decision provides another example of agencies moving from broad [00:14:00] workforce reductions toward more targeted decisions about where civilian employees are needed. For federal job seekers and current Army civilians seeking reassignment or advancement, the end of the freeze should gradually reopen opportunities that were unavailable during the hiring restriction. Federal News Network

[00:14:20] BOP Union Contract Restored
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Federal Judge Orders Bureau of Prisons to Restore Its Union Contract

On 29 September 2026, a federal judge ordered the Bureau of Prisons to restore its collective bargaining agreement with the American Federation of Government Employees' Council of Prison Locals 33. The council represents approximately 30,000 Bureau of Prisons employees. The ruling reinstates the agreement along with amendments and memoranda of understanding that had previously been in effect. BOP terminated the agreement approximately one year earlier, after broader administration actions restricting collective bargaining at [00:15:00] numerous federal agencies. Federal News Network

The union challenged the termination under the Administrative Procedure Act and the First Amendment. Its attorneys argued that even if the broader executive action restricting bargaining were lawful, BOP still had an obligation to follow reasoned administrative decision-making requirements when terminating an existing agreement. The court's order restores the contract, although further litigation or appeals remain possible. This ruling follows other federal-sector labor disputes, including litigation involving the Department of Veterans Affairs that has been discussed in earlier episodes. Federal News Network

For BOP employees, restoration of the agreement can affect grievance procedures, workplace representation, negotiated working conditions, and other provisions contained in the contract and related memoranda. The decision does not automatically restore collective [00:16:00] bargaining throughout the federal government. Its direct effect applies to the Bureau of Prisons dispute before the court. Nevertheless, the reasoning may be examined closely in other cases challenging agency decisions to terminate collective bargaining agreements following the administration's executive actions on federal-sector labor relations. Federal News Network

[00:16:23] EPA Union Lawsuit Filed
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EPA Union Files Its Own Contract Lawsuit

A related but separate case began on 29 September 2026, when AFGE Council 238 sued the Environmental Protection Agency seeking restoration of its collective bargaining agreement. The council represents approximately 8,000 EPA employees. The union argues that EPA violated the Administrative Procedure Act and the First Amendment when it terminated the agreement in August. The lawsuit also connects the timing of that termination to disciplinary actions involving employees who signed a declaration of [00:17:00] dissent concerning administration environmental policies. Federal News Network

EPA's case is at a much earlier stage than the Bureau of Prisons litigation. The filing is an allegation by the union, not a judicial finding that EPA acted unlawfully, and the agency will have an opportunity to defend its actions. For employees, the important development is that litigation over terminated federal union contracts is now proceeding on several separate tracks. Courts may ultimately reach different conclusions depending on the agency's actions, the administrative record, the applicable executive orders, and the specific legal claims presented in each case.

[00:17:42] Wrap Up and Subscribe
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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 [00:18:00] is your best tool. Subscribe wherever you get your podcasts​