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Your 2026 Step-by-Step Federal Retirement Planning Guide

Posted on Thursday, 19th February 2026 by

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Federal retirement planning comes with its own rulebook. Between FERS calculations, TSP strategies, and benefit elections, it’s easy to feel overwhelmed by the complexity. But here’s the good news: with the right checklist and timeline, you can navigate this process confidently and avoid costly mistakes.

This detailed checklist complements and expands on our abbreviated “Ultimate Retirement Planning Guide,” which we publish annually.

Whether you’re five years from retirement or five months, this guide breaks down exactly what you need to do and when. We’ll cover the key 2026 updates (including new TSP contribution limits and Roth conversion options) and give you a practical framework for making informed decisions about your federal retirement.

Understanding your federal retirement system

Before diving into the checklist, let’s clarify how your federal retirement actually works. The Federal Employees Retirement System (FERS) operates on three pillars that together provide your retirement income.

The first pillar is your Basic Benefit Plan, essentially a pension calculated using your “High-3” salary (your highest three consecutive years of basic pay) and years of creditable service. Most FERS employees contribute 0.8% of their pay toward this benefit.

The second pillar is Social Security. As a federal employee, you pay into Social Security and can collect benefits alongside your federal pension. The third pillar is your Thrift Savings Plan (TSP), a defined-contribution plan similar to a 401(k) where your agency automatically contributes 1% of your salary and matches up to 4% of your contributions.

Understanding these components matters because your retirement eligibility depends on specific combinations of age and service:

Your MRA varies by birth year (ranging from 55 to 57), so check your specific age requirement. Also critical: the “5-year rule” requires you to be enrolled in FEHB (health insurance) and FEGLI (life insurance) for the five consecutive years before retirement to continue coverage into retirement.

One Year After the Federal Return-to-Office Order, Here’s What Actually Changed

5 years out: Building your foundation

If retirement is still a few years away, now is the time to verify your foundation. Small errors discovered now are fixable; the same errors discovered after submitting your retirement application can delay processing or reduce your benefits.

Start by verifying your Service Computation Date (SCD). This date determines when you become eligible for retirement and how much service credit you’ve earned. Review your SF-50s (Notification of Personnel Action) to confirm:

Speaking of military service: if you have post-1956 military service, you must pay a deposit to receive credit toward your federal retirement. This deposit must be paid in full before you retire, so check your status now.

Next, confirm you meet the FEHB 5-year requirement. You must have been continuously enrolled (or covered as a family member) for the five years immediately preceding retirement. If you’re considering changing plans during Open Season, make sure the change doesn’t break your continuity.

Finally, maximize your TSP contributions while you still have earning years ahead. For 2026, the contribution limits have increased:

If you’re age 50 or older and your 2025 Social Security wages exceeded $150,000, new rules require your catch-up contributions to go into Roth TSP starting in 2026.

12 months before retirement: Making key decisions

With one year to go, you’re entering the decision-making phase. Your choices now will impact your finances for decades, so take time to understand the implications.

Choosing your retirement date strategically

Timing matters more than most federal employees realize. For FERS employees, your annuity begins the first day of the month following your retirement. Retire on January 31st, your annuity starts February 1st. Retire on January 15th, you wait until February 1st anyway, losing half a month of income.

That’s why end-of-month retirements are popular. They minimize the gap between your final paycheck and first annuity payment. December retirements are particularly strategic because they maximize your lump-sum annual leave payout (which is based on your highest salary rate, typically after any year-end step increases).

Request annuity estimates from HR for several target retirement dates.

Age milestones also factor in. At age 62 with 20+ years of service, your pension multiplier increases from 1.0% to 1.1% per year of service, a 10% boost. If you’re close to this threshold, the math might favor waiting.




Key benefit elections to review

During the application process, you’ll make several irrevocable (or nearly so) decisions:
Survivor benefits: You can elect full survivor benefits (50% of your annuity to your spouse), reduced benefits (25%), or none. This choice affects your monthly annuity amount and cannot be changed after retirement except under limited circumstances.

  • FEHB plan selection: Consider switching to a plan that better serves retirement needs, especially if you’re moving to a different location or your health needs have changed.
  • FEGLI continuation: Evaluate whether continuing FEGLI into retirement makes sense compared to private life insurance. FEGLI premiums increase significantly as you age, especially the Part B Multiple premiums.
  • TSP withdrawal strategy: Decide between monthly payments, lump sum withdrawals, purchasing an annuity, or leaving funds to grow. You can change this later, but having a plan helps with cash flow management.

Documentation to gather now

Start collecting these documents while you still have easy access:

  • Marriage certificates (current and any prior, if applicable)
  • Military service records (DD-214)
  • Court orders related to divorce or child support
  • Updated beneficiary designations: SF-2823 for FEGLI, TSP-3 for TSP, SF-1152 for unpaid compensation

6 months out: Finalizing your application

At the six-month mark, it’s time to move from planning to action. Schedule your pre-retirement counseling session with your agency’s HR or benefits office. They can provide personalized estimates and catch any issues before they become problems.

Critical action items:

Download copies of your eOPF (electronic Official Personnel Folder) records. Once you retire, you lose access to this system, and you’ll want your own copies for reference. Retain copies of your Leave and Earnings Statements (LES) and keep them with your retirement paperwork. They list information you may need, such as confirmation that you paid for your military credit, etc.

Complete any remaining service credit payments. If you’re making deposits for military service or redeposits for refunded FERS contributions, these must be paid in full before your retirement date.

Submit your retirement application, the SF-3107 Form, using the new Online Retirement Application (ORA) system. While agencies typically accept applications 30-90 days before retirement, submitting earlier gives time to address any issues.

Verify all beneficiary forms are current. Life changes (marriage, divorce, births, deaths) often require beneficiary updates. Don’t assume your designations from 20 years ago still reflect your wishes.

Understanding the OPM processing timeline

After your retirement date, your case moves through several phases:

  1. Agency processing (30-45 days): Your agency assembles your retirement package and sends it to the payroll office
  2. Payroll certification: Your payroll office certifies your records and forwards them to OPM
  3. OPM intake (10-15 days): OPM receives your package, assigns a CSA (Civil Service Annuitant) claim number, and sets up interim payments
  4. OPM processing (10-90 days): OPM reviews your case, calculates your annuity, and issues your first full payment

During processing, you’ll receive interim payments, typically 60-80% of your estimated final annuity. These partial payments help cover expenses while OPM finalizes calculations. Once complete, you’ll receive an adjustment payment making up the difference, minus any premiums due for health and life insurance.

2026 changes that affect your retirement

Several 2026 updates are worth understanding as you plan:

TSP enhancements

Starting January 28, 2026, TSP participants can convert traditional TSP balances to Roth TSP through in-plan conversions. This is significant because previously, Roth options were limited to new contributions only. Conversions are fully taxable in the year performed, so consult a tax professional before proceeding.

The contribution limits have increased as noted earlier, and the “super catch-up” provision for ages 60-63 remains at $11,250, giving older employees a substantial boost in their final earning years.

Social Security and Medicare updates

The 2026 Social Security COLA is 2.8%, meaning benefit increases for those already collecting. The taxable wage base increased to $184,500, and the maximum monthly benefit for someone retiring at full retirement age is now $4,152.

Medicare Part B premiums are rising to $202.90 per month (from $185 in 2025) for most enrollees. However, if your income from all sources exceeds certain limits, you will be subject to an additional Part B premium titled the Income Required Monthly Adjusted Amount (IRMMA). I

If you’re approaching 65, coordinate your Medicare enrollment with your FEHB coverage. Most federal retirees keep FEHB and add Medicare Part A (free) and Part B (premium-based) for comprehensive coverage. Many consider switching to the new FEHB-sponsored Medicare Advantage Plans with Part B reimbursement.




Tax planning considerations

The year you retire often creates unusual tax situations. Your lump-sum annual leave payment is taxable in the year you receive it, which may push you into a higher bracket. Consider whether accelerating deductions or deferring income makes sense.

If you’re considering Roth conversions (either within TSP or by rolling to an IRA), consider your tax bracket trajectory. Converting during a low-income year (early retirement, before Social Security and RMDs begin) can be advantageous.

First year of retirement: Action items

Once you’ve retired, several immediate actions will smooth your transition:

Set up your OPM account

Create your Retirement Services Online account using your CSA claim number. This portal lets you track your case status, update contact information, change direct deposit, and download your personalized retirement booklet once processing is complete.

Manage benefits during interim pay

While receiving interim payments, you’ll need to manage certain benefits differently. Health and life insurance premiums aren’t deducted from interim payments; they’re collected retroactively from your adjustment payment once processing completes. However, dental, vision, and long-term care premiums must be paid through BENEFEDS during this period.

Review your first annuity statement

When you receive your first full annuity payment, review it carefully. Verify that:

  • Your service calculation matches your records
  • Your High-3 salary is correct
  • Survivor benefit elections are reflected accurately
  • Health and life insurance deductions are appropriate

 Plan for Medicare if approaching 65

If you’re within a few years of Medicare eligibility (age 65), start planning now. You have an eight-month special enrollment period after retiring to sign up for Medicare Part B without penalty. Most federal retirees benefit from keeping FEHB and adding Medicare Part A and Part B.

Common first-year mistakes to avoid:

  • Spending at pre-retirement levels during interim pay (remember, you’re receiving 60-80% of your eventual annuity)
  • Missing Medicare enrollment deadlines if you’re 65 or approaching it
  • Failing to update your address with OPM if you move (this delays processing and correspondence)
  • Not reviewing your retirement booklet for errors (corrections are easier early on)

Start planning your federal retirement today

Federal retirement planning isn’t something to leave until the last minute. The employees who transition most smoothly are those who started early, verified their records, and made informed decisions at each milestone.

Your action plan depends on your timeline:

  • 5+ years out: Focus on maximizing TSP contributions, verifying your SCD, and ensuring FEHB continuity
  • 1-2 years out: Begin specific retirement date planning, gather documentation, and understand your benefit elections
  • 6-12 months out: Submit your application, complete counseling, and prepare for the transition period
  • First year retired: Monitor your OPM case, manage cash flow during interim pay, and review all benefit statements

The complexity of federal retirement is manageable when broken into steps. Start with verifying your Service Computation Date, then work through this checklist systematically. Your future self will thank you for the preparation.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, OPM UPDATES, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Online Retirement Application (ORA) Update

Posted on Friday, 13th February 2026 by

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This service was launched in July of last year, and my article titled “Apply for Retirement on OPM’s Online Application Service” outlined how to sign up for and use this service.  I state in the article that, “Effective July 15, 2025, OPM will no longer accept paper retirement applications. Any paper submissions created on or after June 2, 2025, will be returned to the agency for digital resubmission.”

Where’s My Application?

Federal retirements were significantly higher last year due to voluntary retirement programs implemented early in 2025. This has added to the normal annual retirement numbers, causing processing delays. OPM estimated that retirement volumes will be roughly 50% higher and could reach twice historical levels, according to Scott Kupor, Director of the U.S. Office of Personnel Management.

One Year After the Federal Return-to-Office Order, Here’s What Actually Changed

ORA Verses Paper Retirement Applications

This new system was designed to eliminate the manual, paper-based retirement process and replace it with the Online Retirement Application (ORA) system. This January, there were roughly 107,000 retirement applications in the online system. The ORA applications are now exceeding the paper applications they are still receiving.

Submitting a paper application will further delay your processing time because it must be returned to your agency and digitally resubmitted. Most agencies require employees to apply through the new ORA system.

This new application system allegedly offers many advantages: faster processing times, greater visibility into application bottlenecks, and greater transparency and ease of use for applicants, agency HR personnel, payroll providers, and OPM staff.




The Retirement Process

Applicants complete the process online, and it currently takes roughly 14 days to complete the application. This is the total elapsed time from start to finish, not the actual time spent filling out the online forms.  Individuals can save their partially completed application and retrieve it later. Typically, after they locate the information they need to proceed, such as military records, their current LES statements, and other documents.

The system automatically routes the application to the agency’s HR organization. They add all of the relevant employment-related data. ORA applications currently reside in the agency’s HR departments for an average of 60 days; processing times will vary as the system is updated and bottlenecks are resolved.

The final routing step after HR completes its work is for ORA to send the application to the agency’s payroll provider. They process any final pay owed to the annuitant (particularly if there is unused, accrued vacation owed). Then they upload the full payroll history of the applicant so OPM can ultimately calculate the pension amounts. Currently, ORA applications reside in the payroll organizations for an average of 51 days.

According to OPM, the process typically takes about 120 days to complete after the applicant starts the application.  As of last January, there were 107,000 total ORA applications with OPM: roughly half were with OPM, 30% with payroll providers, 12% with agency HR teams, and 8% with the applicant.

Conclusion

I’ve written many articles about retirement application processing times over the years, and with the current backlog, there doesn’t seem to be much of an improvement. It is still taking an extended period of time for the retiree to receive their full annuity check.

OPM’s discussion of the required steps and the time spent in each segment of your application’s journey is revealing. Hopefully, with advances in automation within those divisions, processing time will continue to improve.

Scott Kupor, Director, U.S. Office of Personnel Management, states, “As of today, we are completing ORA applications in less than 40 days from when we receive them in OPM. To give you a reference point, it takes at least twice as long for us to adjudicate paper-based cases. So, we are moving in the right direction.”

Hopefully, after they clear the current bottleneck, processing times will decrease dramatically as the process is refined.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, OPM UPDATES, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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The End to the Silver Script Madness – News Flash

Posted on Saturday, 7th February 2026 by

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Many, if not most, FEHB providers now offer Medicare-eligible individuals a Prescription Drug Plan (PDP) through the Employer Group Waiver Plan (EGWP). All GEHA standard and high plan retirees with Medicare Parts A and B, who live in the United States, are eligible for a PDP/EGWP prescription plan through SilverScript.

FEHB Open Season

GEHA offered this for the first time last year and automatically enrolled all retirees with Medicare Parts A & B in this plan. This created widespread confusion, and it took me and many others months to opt out. In the meantime, we were enrolled in Part D without our permission, and many had Part D premiums deducted from our Social Security checks.

 

One Year After the Federal Return-to-Office Order, Here’s What Actually Changed

 

2026 Change

GEHA sent out a letter in early February to all of their members announcing, “If you are satisfied with your current GEHA prescription drug coverage provided by Caremark, no action is needed. If you would like to enroll in the SilverScript plan, you will need to take steps to do so.”

I received many questions from our newsletter subscribers during the last Open Season about whether GEHA members would have to opt out each year. Their customer service department assured me that once you opt out, you are not required to do so each year, and I mentioned that in my column.

The letter that GEHA members received formalizes this message and puts it to rest. Many members stayed with Caremark because their medications were covered and often at a lower cost, plus if your income exceeded a certain limit, you must pay a Part D premium. We already pay too much for our healthcare when you add in Medicare Parts A & B, FEHB premiums, and FEDVIP coverage.




Final Thoughts

Hopefully, this will become the norm for all FEHB providers. The GEHA letter outlines the pros and cons of your options and provides guidance on how to opt into a SilverScript plan if desired. They also describe what will happen if you decide to disenroll.

Fortunately, if you decide to opt into the SilverScript program, you can disenroll at any time. There are a lot of moving parts. For example, if you move to SilverScript, you are issued a separate prescription drug card. If you cancel, they will have to reissue you a new GEHA High or Standard plan prescription drug card.

I suggest keeping this letter with your healthcare provider file; you never know what circumstances may arise that would warrant a change down the road.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, General Information, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Reflections 2025 – Marvin Gaye (What’s Going On)

Posted on Friday, 30th January 2026 by

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I grew up listening to Motown and saw Smokey Robinson and the Miracles at the South Park Fairgrounds in 1967. I keep hearing the Lyrics of Marvin Gaye’s hit song “What’s Going On” over and over in my head:

Mother, mother
There’s too many of you crying
Brother, brother, brother
There’s far too many of you dying
You know we’ve got to find a way
To bring some lovin’ here today, yeah

Marvin’s lyrics captured the unrest at the time, drug abuse, poverty, and the Vietnam War. Not much different from “What’s Going On” today! Middle East conflicts and the Ukraine War, the fentanyl crisis, and poverty. Unfortunately, all of these topics are still prevalent today. The more things change, the more they stay the same.

 

The Federal Sector on the Move

Federal employees and annuitants alike were impacted by what transpired over this past year. Everything from major federal workforce reorganizations to the elimination of WEP and GPO, the acceptance of online federal retirement applications, the new two-page federal resume format, the economy, TSP accounts hitting new highs throughout the year, and the recent announcement that 90% of the federal workforce is now back in the office compared to 30% a year ago.

Significant Changes Impacting Federal Employees

It’s hard to keep up with all that is going on today. The moment I focus on one subject, another pops up. The cabinet Secretaries are making significant changes across the board, including restructuring and selective reorganizations.

There isn’t a week that goes by without major announcements, and before I’ve had time to cover last week’s activities, more land on my desk. All in all, a good thing; it’s about time the federal government’s leadership took decisive action not only to improve its internal operations but also to provide better services and implement major changes that are long overdue.

 




Measurable Improvements

Violent crime in the U.S. has decreased dramatically, according to recent reports. Homicide rates fell by over 20% to the lowest level since 1900. Major city data shows significant drops in carjackings (-43%), robberies (-23%), and gun assaults (-22%), with violent crime falling below pre-pandemic 2019 levels. The only category that increased, up 7%, was drug crimes.

This can be attributed to a combination of factors, including the normalization of life after the pandemic, dramatically reducing the supply of illegal drugs entering the country, the American Rescue Plan Act funding, the Administration’s concentrated effort to reduce crime, the deportation of criminal illegal aliens, and stopping the influx of illegal border crossings. Other accomplishments include:

  • GDP exceeded expectations and in Q3 measured 4.3%, Q4 GDP measured 5.4% on January 21. Most economists were projecting a significantly lower GDP for 2025.
  • Inflation is now running at 2.4%, a 70% reduction from the previous peak. I filled up my gas tank this morning at Sam’s Club in Pennsylvania for $2.73 a gallon!
  • Our trade deficit decreased significantly in October 2025 for the first time since 2019.
  • The 2017 Tax Cuts and Jobs Act individual rates were made permanent, and a “No Tax on Tips” and “No Tax on Overtime” policies were implemented. It is taking TurboTax some time to update its tax preparation software to accommodate all of the payroll tax changes.
  • Approximately 54% to 60% of U.S. households have some form of retirement account, such as a 401(k). The major stock indexes are on a tear, new highs were reached over a dozen times in 2025, and they are continuing on that path so far this year.
  • 654,000 private-sector jobs were created, with the largest increase in blue-collar wages in nearly 60 years.
  • The government negotiated favored nation status with major drug manufacturers to dramatically reduce prescription drug costs for all Americans.
  • Take-home pay is increasing in 2026 primarily due to IRS inflation adjustments to tax brackets (raising them by about 2.3%) and a significant increase in the standard deduction.

All of these accomplishments are commendable, but the excessive inflation we experienced over the past 4 years has driven prices higher, and prices for essential items aren’t going down anytime soon. The government has increased 2026 take-home pay by reducing taxes and by modifying or eliminating tariffs to lower costs.  It’s helping, but it is difficult to erase the stigma of inflation when you walk into a local grocery store or restaurant.

Local Grocery Store Coffee Display

You see firsthand just how many staples are out of reach for many. Coffee that was selling for $7 a container three years ago now costs over $22.48, on sale for $13 to $18.99! Prices for meat, cereals, and even candy are through the roof.  Many other staples, such as pasta, dairy products, produce, and canned goods, haven’t increased significantly, but those major items listed cause all to pause.

Restaurant meals are also unrealistically high. My wife and I were out and about recently and stopped at McDonald’s for a hamburger, one medium fry, and a soft drink. It cost over $18!

The government must find ways to moderate prices on these essential items to convince the public that things are improving.

One Year After the Federal Return-to-Office Order, Here’s What Actually Changed

Conclusion

Typically, politics gets in the way, great plans go astray, and major projects are put on the back burner as both parties quibble over the path forward. Compromise isn’t a cornerstone of the Legislative branch, as it should be.

Wouldn’t it be amazing if parties used common sense and compromised to improve all of our lots? OK, I’m dreaming here, back to reality.

In the fifth stanza of “What’s Going On,” Marvin laments, “Oh, you know we’ve got to find a way, to bring some understanding here today.”

Hopefully, our Representatives, on both sides of the aisle, can put aside partisan politics and find a way to address the many problems we face in America today.

Helpful Retirement Planning Tools

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in General Information, LIFESTYLE / TRAVEL, OPM UPDATES, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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The Federal Workforce Data (FWD) Release – OPM Update

Posted on Friday, 23rd January 2026 by

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I often refer to OPM’s statistics for my retirement planning articles, and OPM’s new FWD website allows anyone to review these statistics in a pleasing graphical presentation that was not available under the legacy system. Actually, you will find a lot of interesting information readily available on this site.

The new Federal Workforce Data (FWD) site was launched publicly this month. FWD replaced the legacy FedScope data collection system with a sleek, professional, and modern update that is user-friendly and provides timely, reliable federal workforce statistics.

FWS Home Page

The legacy system was difficult to use and took time and patience to navigate. Plus, there was a considerable learning curve, with little online guidance to help you get to where you wanted to go. Yet it was better than the printed brochures and documents that preceded it, including OPM’s monthly “Employment and Trends” pamphlet, which contained 31 tables covering every facet of the federal workforce.

I used the original brochures and moved to the FedScope system for the statistics I used in my articles over the years.

Federal Workforce Data (FWD)

“This new site gives the public a faster, clearer, and more user-friendly way to explore federal workforce data. Instead of waiting long stretches between updates, the site will be refreshed on a predictable monthly basis,” according to Scott Kupor, Director, U.S. Office of Personnel Management.

For example, if you click “Explore Data” and then select “Workforce Size and Composition,” it shows a graph of total employment from 2015 to the present. Total employment is now back to 2015’s level, and 219,922 positions have been eliminated since January of 2025.




Scrolling lower on this page, you will find a chart showing union participation over time. Currently, 37.9 percent of the workforce is unionized, down from 55% in July of 2025.

Federal employees can review the number of positions lost in their organization under the “Workforce Changes” section. From the beginning of 2025, through January 2026, the following organizations lost the most employees over the past twelve months:

  • Department of War – 64,400
  • Veterans Affairs – 26,000
  • Treasury – 23,500
  • Agriculture – 21,900
  • Health & Human Services – 16,200
  • Department of Justice – 9,300
  • Department of the Interior – 9,300

You can check out the entire list under Workforce Changes on the new FWD site. Change the search parameters to 2025-2026.

This FWD site is quite an improvement, and I believe it goes hand in hand with other major automation updates released this past year.

OPM is expanding the range of workforce information they share publicly, including data on retirement eligibility, telework and remote work, administrative leave, performance ratings, and federal hiring activity. Automation updates have been released including the recent online acceptance of retirement applications.

The Director stressed that new data, visuals, and features will be added each month based on user feedback.

Summary

The site offers excellent visual presentations and is organized into distinct functional groups. It is a work in progress; I have a few issues. First, there isn’t a search function available at this time.  A search box on the webpages would let you find the dataset you need without scrolling through all of the dropdown menus.

The retirement and attrition tables aren’t currently available on this system; they may not have been added yet. I did find the retirement claims processing tables on OPM’s site, which I frequently refer to.

They list several acronyms that you have to drill down into the site to discover what they represent. For example, the dropdown menus list EHRI several times. It stands for the “Enterprise Human Resources Integration” (EHRI) system, the federal government’s central source of data on the federal civilian workforce.

Overall, the system is a marked improvement over its predecessor; kudos to OPM for this upgrade.

Helpful Retirement Planning Tools




Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

 

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Savings Bond Calculator & Treasury Direct Inefficiencies!

Posted on Thursday, 15th January 2026 by

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When inflation raised its ugly head in May of 2022, I-Savings bonds were paying 9.62%. Many purchased these bonds to partially offset the near-zero interest rates they earned on their fixed income over the past decade. It is easy to set up an account, and currently, the I-Bond yield is 4.03%, including a .90% fixed rate, not bad overall.

I’ve written articles discussing Treasury Direct offerings. The more I deal with them, the more discouraged I am by their inability to provide efficient investment services to retail investors. DOGE would have had a field day with this organization.

Actually, they operate more like a third-world bank when dealing with their retail investors. I’m talking about private citizens who purchase Savings Bonds, Treasury Bills, Notes, and Bonds directly from the Treasury.

I can’t imagine large financial institutions that purchase billions of dollars in Treasury instruments have to deal with what we do every time we go online. If you have to modify an account or ask questions about our Treasury investments, expect delays of up to a year or longer in some cases.

The Savings Bond Calculator Fiasco


I use the savings bond calculator to determine the previous month’s gains and total market value. Savings Bonds mature after 30 years, and from that time on, you aren’t earning interest. If you don’t redeem them, their value slowly evaporates as inflation keeps gaining ground each and every year. The Treasury reports that 1 percent of all matured savings bonds have not been redeemed!

This isn’t a problem with the electronic savings bonds that you purchase online, which remains in your Treasury Direct account. They are automatically redeemed at maturity, and the cash is deposited into your designated bank account.

This Calculator is advertised to be used only with paper savings bonds; there are ways to work around this. I’ve used this application for probably 20 years or longer. The calculator software is outdated and can be difficult to use, and when you sell or buy new bonds, the process for saving the modified bond inventory is unreliable and difficult to follow. I must admit that it was accurate to the penny when I cashed in 18 matured bonds recently.

After removing the 30-year-old bonds from my Savings Bond Calculator last week It took half a day to determine how to restore the calculator’s functions. I had to open the program’s code in Notepad and modify it to get it to work properly. More on this later.

Who’s on First and Whats on Second! (Abbot and Costello)

I believe the U.S. Treasury is the world’s largest financial institution. You would expect their website for retail investors to be intuitive, easy to use, and provide the services we expect from other financial institutions. Their system is extremely outdated and certainly not user-friendly.  Here are several major issues that retail investors must deal with on a daily basis:

  1. Treasury Direct doesn’t generate monthly or quarterly statements for its customers! They advise you to print your computer screen and keep the printout for your records. The same applies to bond purchases and sales. This is the only documentation that you have if their software or database is corrupted.
  2. You aren’t permitted to have multiple beneficiaries on your accounts; only one is permitted, or you can register the account by the person’s name WITH one other. This creates issues when the owner wishes to leave Treasuries or savings bonds to all of their children or family members. They should allow multiple primary and contingent beneficiaries, as all other financial institutions do.
  3. Many financial institutions no longer redeem paper savings bonds, and the ones that do require you to have an account with them. If you can’t find a bank or credit union in your area, you must send your Savings Bonds to the Treasury for redemption. This can take months and requires you to fill out forms with your submission and obtain signature verification.
  4. Their website, TreasuryDirect.gov, is archaic. For example, to go back to the previous page, you must use the back button in the program. If you use the computer’s back arrow, you log out of the system.
  5. Simple functions like transferring savings bonds from one Treasury Direct account to another take months or longer to accomplish! So much for operational efficiency.
  6. I called their customer service to find out if one of my bonds was redeemed. I had the serial number and purchase date. You would think they could call up their bond database and find this information. They can’t; you have to submit a form, have it notarized, and wait months or longer for a reply!

In February of 2025, I sent a request to the Treasury to transfer all of the online I-Bonds and TIPs in my personal account to the joint trust account that we created for estate-planning purposes.  I called several times over the past year to check on the status of my request. Last week, they advised me that the case still has not been assigned. The customer service representative said he couldn’t expedite this and that anytime they deal with trusts, it takes over a year to finalize the request.

When I transferred our personal accounts to a joint trust account at my local PNC branch, it took 1 week to complete. Either the Treasury is woefully understaffed, or their automation systems haven’t been updated this century. I can imagine a little of both, and the staff appears complacent and unable to provide the information and speedy services their clients deserve.




Savings Bond Calculator Fix

After you remove any cashed-in savings bonds or add new bonds to the calculator, you have to save the file by clicking the blue “Save” button in the results area. You must follow the save file guidance provided by the Treasury to save the file using only a limited number of browsers. I use the Firefox browser. Once you save the file by following their detailed instructions, the new revised list of bonds is available.

Unfortunately, nothing happened when I clicked on the “RETURN TO SAVINGS BOND CALCULATOR” button. The form action wasn’t functioning. I right-clicked on the calculator Firefox icon, selected “open with,” and then selected Notepad.

Towards the top of the page, find “<!– BEGIN CONTENT –>.” Just beyond this, locate:

<form method=”post”> This was all I had on my screen; it was missing the return “action” directions as noted below. If your program doesn’t present as shown below, replace the above code with the following line to fix the problem.

<form method=”post” action=”https://treasurydirect.gov/BC/SBCPrice”>

After making this change, I was able to return to the calculator’s main screen by clicking on “RETURN TO SAVINGS BOND CALCULATOR.” However, every time you either redeem or buy savings bonds you will have to add the expanded code above until the Treasury fixes the problem! Print a copy of this article and keep it with your Savings Bond file for easy reference the next time you make a change to your savings bond calculator.

Their Savings Bond Calculator is due for a major overhaul to make it compatible with the Chrome and Microsoft Edge browsers and to simplify its operation.

The Treasury stopped selling paper bonds in 2012. However, you could still purchase them with your tax return through 2024. According to Treasury Direct, there are 286 million paper bonds that have not been redeemed, and an updated Savings Bond Calculator is essential for their owners to track them.

$200K Salaries and National Impact:
Why the New U.S. Tech Force Is a Boost for Technologists

Conclusion

These types of issues are systemic in government, and many agencies are actively updating their operations, systems, and websites. I would only hope that the largest financial entity in the world would be doing the same; making our lives just a little easier while providing investors with the essential services they need to manage their lives and accounts.

I mentioned that the savings bond calculator can be used to track your online savings bonds with a minor adjustment. The calculator only accepts bonds up to $5,000. If you purchase bonds online for $10,000, divide that by two and manually enter two $5,000 bond entries. I use the online bond identifier, such as IAAAB, and convert it to IAAAB-1 and -2 (two separate entries). The desktop calculator uses the bond series, issue date, and denomination to calculate the interest.

I don’t believe Treasury Secretary Scott Bessent is aware of these issues, focusing on trade negotiations and major economic and fiscal policy matters. If someone from the Treasury is reading my column, please forward this article to the Secretary’s staff. The American public deserves the same level of service from Treasury Direct as from all other financial institutions.

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Tax Forms Availability – What to Expect This Year

Posted on Friday, 9th January 2026 by

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There is no escaping the reach of Uncle Sam; any income received is reported to both you and the IRS on your W-2s and 1099 forms, with few exceptions.

Federal employees’ W-2s are sent out by their agency’s payroll department, or they can download copies from OPM’s Employee Express system.

 

Each year, I receive requests for help from site visitors who haven’t received their 1099s. Retirees and federal employees collecting Social Security or taking RMDs typically receive Form 1099-R from OPM for annuitants, the TSP, and other IRA accounts. Most are received by the end of January via regular postal mail, while Social Security’s SSA-1099 forms arrive in early to mid-January.

These tax forms are used to report various types of income received from sources other than an employer, who traditionally issues a W-2. The company or organization that pays the income is responsible for sending copies of the 1099 form to both you and the IRS, typically by January 31st of the following year.

There are over 20 types of 1099 forms issued for specific categories of non-employment income. Here are the most common:

  • Interest and Dividends (1099-INT/DIV)
  • Retirement accounts and annuities (1099-R)
  • Social Security (SSA-1099)
  • Miscellaneous Information (1099-MISC)
  • Social unemployment compensation (1099-NEC)
  • Proceeds from Real Estate Transactions (1099-S)

There is no escaping taxes on income earned. Even Third-Party Network Transactions, such as payments received through third-party payment processors like PayPal or Venmo for goods and services, must be reported on a 1099-K when a certain threshold is met.

Annuity 1099-R Changes

OPM changed the delivery method for federal annuitants’ 1099-Rs. These forms are now available only by email, according to a recent notice posted on their Retirement Services website!

The notice states, “In accordance with IRS Bulletin 2025-30 and the 1099-R consent statement, we have updated the 1099-R delivery method for all customers to email. That means if you have been receiving your 1099-R by postal mail, you will now receive an email with a link to access your 1099-R. Keep in mind that your current 1099-R is available when you log in to Retirement Services Online. To review or change your delivery preference, see the 1099-R Preferences section of your Profile page.“

When I visited OPM’s Retirement Services Website to see if my 1099-R was available, this notice was displayed prominently on the main page.  I confirmed, on my account’s profile page, that my 1099-R delivery method preference was changed to “Email.”

Don’t Cut and Run Without an Annuity – Deferred and Early Retirements

I tried contacting OPM without success, as usual, they seldom answer their phone and ask you to call back. Fortunately, you can elect to revert to a postal mail delivery preference if desired.

If you read the consent statement, only those who “affirmatively consent to receive and acknowledge that you can access, receive, print, and retain your tax-related documents (including IRS Form 1099-R) electronically. You agree that such information may be communicated online by posting notices, disclosures, and other communications on our website or by sending such information to you by e-mail.“

If you set up a Retirement Services Website account, check the 1099-R delivery method under your Profile. I don’t recall receiving or consenting to this method of delivery. This isn’t an issue for me, since I typically download a copy from the site as soon as it becomes available.

Many, especially older retirees, do not have email or computer access; they will continue to receive mailed copies.

TSP 1099-R

Our TSP 1099-R tax forms are issued for all plan withdrawals and typically arrive by late January. You can also find it in your TSP Account’s “Secure Mailbox.” Download a copy by clicking the circled bell in the upper-right corner of the website or visit the Documents area.

Even though I rolled over my TSP Account to a Fidelity IRA earlier this year, I still have access to my account and can download previous reports and my 1099-R form.

If you don’t receive your 1099-R Form in the mail by mid-February, call the TSP to request a replacement or download a copy online.

The Bottom Line

This is the time of year when we are flooded with 1099s from all sectors, including 1099 forms from cashing in U.S. government Savings Bonds, brokerage account statements, local bank interest-bearing accounts, CDs, any retirement accounts that distributed funds in 2025, and everything in between.

If you use TurboTax to prepare your taxes, the program holds a record of all of the 1099s you received the previous year. When you import last year’s data into the new year, they are carried over to remind you of what to expect in the current year.

Those who have their taxes prepared must take hard copies with them when they go in to get them done.  Possibly prepare a checklist from last year’s 1099 submissions to use before going to the tax preparer’s office.

If you are missing a form, go to the source first, such as OPM or the TSP; they offer a replacement on their websites. Those without computer access must call to receive a replacement. I typically download mine to complete my taxes early.

Helpful Retirement Planning Tools




Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

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Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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The 2026 Landscape: What to Expect and Outlook

Posted on Thursday, 1st January 2026 by

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For those planning their retirement, it’s a good time to assess their financial situation, long before filing their retirement paperwork. Use our comprehensive Federal Employees retirement Planning Guide to establish realistic retirement target dates, track your annual and sick leave, review your retirement benefit options, and estimate your annuity and other income.

Federal Pay Raise

Federal employees received an overall 1 percent pay raise, with 2026 locality rates frozen at 2025 levels for employees under the General Schedule and certain other pay systems. The 2026 pay charts are available for your review.

There are exceptions; the Office of Personnel Management (OPM) is using special pay authorities to provide an additional 2.8 percent pay increase for certain law enforcement officials, in line with a planned 3.8 percent military pay increase.

$200K Salaries and National Impact: Why the New U.S. Tech Force
Is a Boost for Technologists

On the flip side, even though pay raises were limited, cash awards have increased dramatically in the federal sector to reward top performers. OPM’s new guidance encourages larger bonuses (15-25% of pay) for exceptional employees. The more rigorous performance ratings reserve large bonuses for the highest achievers, while agencies shift from broad award distribution to incentivizing those who contributed significantly to the agency’s mission.

I’ve heard from several exceptional federal employees who were quite surprised to receive substantial cash awards this year.

COLA 2026

More than 71 million Americans will see a 2.8% increase in their Social Security benefits and Supplemental Security Income (SSI) payments in 2026. Starting in January, Social Security retirement benefits will increase on average by more than $56 per month, increasing the average monthly payment to approximately $2,071.

Federal retirees under the Civil Service Retirement System (CSRS) will receive a 2.8% COLA increase in their retirement annuities, while FERS retirees will receive a 2% increase.

Thrift Savings Plan Considerations

The Thrift Savings Plan (TSP) elective deferred contribution limit increased to $24,500 for FERS employees with an additional $8,000 catch-up contribution for those aged 50. The TSP’s Annual Additions Limit for 2026 is $72,000. This covers all contributions (your money + agency match).

These limits define the contributions that can be made to defined contribution accounts, such as the Thrift Savings Plan (TSP), for the calendar year. Please note, this is a personal limit that applies to an individual’s aggregated contributions across all such accounts in a calendar year.

If you aren’t currently contributing up to these limits, consider increasing your TSP contributions this year to at least half of your annual pay increase. Your take-home pay will still increase year to year with this modest contribution increase.

Your contributions are tax-deferred until you withdraw them in retirement, and they will reduce your annual income tax while still working.
Federal annuitants typically receive their updated Annuity Statement in late December, with the COLA increase added. OPM sends out updated annuity statements anytime there is a change that affects our annuity.

Next month, we will receive another paper statement showing FEHB healthcare and FEDVIP premium changes. The February statement will soon be available for download on their Retirement Services Website.

New statements are sent out throughout the year whenever there are changes to checking/savings allotments, income tax withholding, and long-term care insurance, etc.

The annual statement provides annuity and benefit information for you and your family. It includes:

  • Annuitant’s Claim number
  • Amount withheld for all items that are deducted from your annuity payment
  • Gross and net payments
  • Monthly survivor annuity currently payable in the event of the annuitant’s death
  • Annual Notice of Survivor Annuity Election Rights
  • OPM contact information.

If you misplace your annual statement, download a copy from OPM’s website along with the instructions, or contact OPM for a replacement. These statements also outline how to make benefit elections, such as applying for a survivor election for a spouse you marry after retirement, survivor annuity elections for a former spouse, and other information.

This document is a wealth of information, and I place this statement in my Estate Planning Binder for safekeeping.

Social Security Tax Limit and Medicare Premiums

Higher earners will pay Social Security taxes in 2026 on earnings up to $184,500. Both employees and employers will pay the 6.2% Social Security tax (OASDI) on earnings up to this amount, with any earnings above that threshold not subject to this tax.

The standard monthly premium for Medicare Part B will be $202.90 for 2026, an increase of $17.90 in 2025. The annual deductible for all Medicare Part B beneficiaries rose to $283 in 2026. Visit our Medicare page for a complete list of Part A and B premiums, including the 2026 Income Related Monthly Adjustment Amount (IRMAA).

Don’t Cut and Run Without an Annuity – Deferred and Early Retirements

BLUE Book (Benefits Summary Booklet)

Request or download an updated retirement benefits booklet through https://www.servicesonline.opm.gov from late January to early February. This will ensure they include your 2026 FEHB and FEDVIP premiums. All retirees receive a comprehensive multi-page pamphlet titled “Your Federal Retirement Benefits” from OPM when they retire. My booklet is 28 pages long. Request your updated copy by selecting the Document Section, the last item listed on the Dashboard’s main menu, and clicking on “Request Booklet.”

Many annuitants order or download a copy each year with updated benefits information and place the booklet in their retirement or estate-planning file. You can also request or download a copy of the original brochure you received when you first retired, if you lost yours, and compare it to the current version.

If you haven’t signed up for OPM’s Online Services, follow the sign-on guidance in my article “OPM Services Online Access Changes.”

This booklet is a wealth of information and includes your personal retirement information, such as CSA number, annuity breakdown, survivor elections, benefit elections, etc. If you don’t have access to their online services, call OPM at 1-888-767-6738. You can also email them at retire@opm.gov or send a written request to the U.S. Office of Personnel Management, 1900 E Street, NW, Washington, DC 20415-1000.

Outlook

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Many changes are in store for federal employees and annuitants as the new administration continues its push to rightsize and modernize the Executive branch.

The FAA is fast-tracking major automation updates across its system, OPM is restructuring operations, and most agency heads are tasked with finding ways to improve services with reduced staffing. A new focus to substantially reward top performers was initiated last year and the full effects of this effort will start with this year’s performance ratings.

Even with all of the uncertainty, federal employees are the backbone of the Executive branch and will continue to find ways to right the ship. I went through 4 major reorganizations during my career, and I believe this current reorganization may be the most significant in generations.

Disruption often creates opportunities, and federal employees who stay the course can make a difference and end up in the driver’s seat down the road.

Even with these uncertainties, retirees have COLA-adjusted annuities and Social Security checks to rely on, and you can expect considerably lower prescription drug costs starting in 2026 due to the administration’s negotiations with major Pharma companies.

Retirees and employees alike have realized significant gains in their TSP and other investment accounts with the major indexes hitting all-time highs over a dozen times in 2025! Inflation is moderating, gas at the pumps has dropped precipitously since early 2024, payroll taxes have dropped this year, increasing everyone’s take-home pay, and manufacturing is returning to America, creating many new jobs.

Yes, change is coming at lightning speed; AI is on a rampage, and uncertainty abounds worldwide about the impact of these innovations. Yet, as with all past significant changes, the world adapts, and mankind thankfully continues to evolve and prosper.

I wish you and yours a happy, healthy, and prosperous New Year!

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: , , , , , , , , , ,
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION, WELLNESS / HEALTH

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