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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.

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 ESTATE PLANNING, FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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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

Sign-up for a One-on-One Free Retirement Planning Consultation

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.

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Long Term Care Insurance – Future Purchase Option

Posted on Friday, 12th December 2025 by

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My wife and I enrolled in the Federal Long Term Care Insurance Program’s Future Purchase Option when it was first offered in the early 2000s. Our monthly premium for Mary was $35.59, and I was paying $37.98 for 5 years of coverage with a maximum lifetime benefit of $228,125. The daily benefit amount was $125.

When I first enrolled in this program, I knew the insurance amount wouldn’t cover the entire cost of our care, or that we might need coverage for the entire benefit period. However, it would cover about 60-70 percent, and we would cover the remainder with savings.




Long Term Care Basics

Long-term care insurance kicks in when an individual is no longer able to perform at least two of the six Activities of Daily Living (ADLs) or has a severe cognitive impairment. There is typically a waiting period, known as an elimination period, which can range from 30 to 90 days or more.

The ADLs are as follows:

  • Bathing
  • Dressing
  • Eating
  • Toileting
  • Transferring (e.g., moving from a bed to a chair)
  • Continence

Long-term care also includes the supervision you might require due to a severe cognitive impairment, such as Alzheimer’s disease. Your doctor must certify that long-term care is medically necessary.

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The Future Purchase Option

This option was the lowest cost for us at the time and allowed us to increase our coverage periodically without undergoing medical underwriting.  Every two years, we received offers to expand our coverage, and we agreed to the premium and coverage increases until the offer we received last month.

Our benefit period was reduced from 5 to 3 years over the years, and premiums have increased substantially since we first signed up. In the last offer we received, my monthly premium increased from $163.06 to $ 193.59, with a corresponding increase in the maximum lifetime benefit from $260,434 to $277,779. Mary’s monthly premium increased from $153.23 to $184.54 with the same corresponding maximum lifetime benefit.

We declined the offer, and our premiums and coverage will remain at the current level for another two years. The increase of approximately $30 each, or $720 a year, for the two of us seemed high for a $17,000 increase in total lifetime benefits and only a $16-a-day benefit increase.  Our daily benefit amount will remain at $237.84 or $7,135 per month.

Opting Out of a Future Price Offer (FPO)

We selected Option 2 to decline the FPO increase. With this option, your premium, daily benefit amount, maximum lifetime benefit, and benefits remain the same for the next two years. If you decline a total of three FPO offers, you must provide evidence of your good health by completing a full underwriting application to receive future FPO offers.

At our age, my wife and I didn’t feel their offer was worth the additional costs. In two years, we will receive another offer and two years after that a third. We can take advantage of future coverage increases if desired or remain at the current levels and premiums for the remainder of our lives.

If you agree to the additional coverage, you do nothing, and the increases will take effect on January 1, 2026. To decline, you must submit the 2026 Future Purchase Option Selection Form, fill in the oval for option 2 to decline the offer, sign the form, and send it to the FLTCIP offices in Portsmouth, NH.

Final Words

Many private insurers canceled their long-term care programs due to rising healthcare costs across the board. The premiums we are paying are only as low as they are because we signed up in 2002 when the program first started, and we didn’t opt into the higher coverage options. The younger you are, the lower your long-term care premiums will be, so it’s best to sign up while in your mid-career or earlier.

That being said, when we add up all the insurance premiums we pay for literally everything, insurance costs are one area where we can realize significant savings by shopping around. We recently received three homeowner’s insurance quotes in another state. The cost for comparable coverage from three providers ranged from $545 a year to close to $3,000! It does pay to shop around.

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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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Open Season Coming to a Close – Last-Minute Checkup

Posted on Tuesday, 2nd December 2025 by

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The open season for FEHB / PSHB health care plan changes will close on December 8th, this coming Monday!  There is still time to consider a change, and the following resources will help you through the expedited process.

Review and Compare

Use my comprehensive Open Season Selection Guide, articles I published, and related resources to fast-track your research and make the selection that is best for you and your family. Many providers’ costs increased substantially last year, and over the past 4 years, our premiums have increased by an average of 40 percent!

Flexible Spending Account (FSA) Roundup

Shawn McCoy, the President of Federal Employee Benefits Advocates, LLC (and an expert on Federal employee benefits), advises, “Even if you have used FSAFED in the past, you must enroll again during this year’s open season. Unlike some benefits, FSAFEDS does not automatically renew each year.” You only have until December 8th to take advantage of the attractive plan.

The FSAFEDS program allows you to save money for health and care expenses that your FEHB Plan, the Federal Employees Dental and Vision Insurance Program, or other health insurance coverage does not cover.

Mr. McCoy publishes a comprehensive FSAFED guide each year that highlights the advantages, changes, and costs for federal employees to consider when opting for this plan.




Applicable Life Events

Even after this Open Season closes, everyone should be aware that you can make changes throughout the year for certain life events. There are time limits for these changes; review the article and OPM guidance to ensure your requests are submitted on time.

Throughout the year, you can change your FEHB / PSHB coverage for the following reasons:

  • When you move
  • If You Divorce
  • Marriage
  • When you reach age 65
  • When a child reaches age 26
  • The death of a spouse
  • The annuitant dies

Medicare Impact on FEHB / PHSB Plans

Review the following articles that describe the impact Medicare has on your FEHB provider payments.

Conclusion

The majority of federal employees and annuitants stay the course and are generally satisfied with their health care plans. Plans change each year subtly, and it’s essential that, at a minimum, you check Section Two of your provider guide to review those changes to ensure you will have the coverage you need in the upcoming year.

One of the changes last year was that GEHA auto-enrolled all members with Medicare as their primary provider into its Medicare Prescription Drug Program (MPDP). Essentially, all of these members were enrolled in Medicare Part D, and this took many by surprise and changed their prescription drug coverage. It took me months to withdraw from this program effectively.

Take some time to do a final review, read the sections of your provider’s guide that are of interest, and confirm that any changes meet with your approval. There are many lower-cost options to consider this year as well.

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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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I Rolled Over My TSP Account to an IRA – Should You?

Posted on Friday, 21st November 2025 by

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I rolled over my traditional Thrift Savings Plan (TSP) to my personal Fidelity IRA last month. The TSP was established in 1987 concurrent with the Federal Employees Retirement System (FERS), and I retired in 2004 under the Civil Service Retirement System (CSRS), leaving me only 17 years to fund my TSP.

There were many factors behind the move: convenience, lower-cost investment options with Fidelity, and inheritance limitations, among others.

As a CSRS federal employee, I was limited to contributing 5% of my salary with no government match. FERS employees receive a 5% match and can contribute up to $23,500 of their salary this year, plus a $7,500 catch-up contribution for those over age 50.

Inheritance Considerations

When an annuitant dies, the TSP establishes a Beneficiary Participant Account (BPA) in the spouse’s name if married and/or sets up a temporary account for all non-spouse beneficiaries. Temporary account holders have 90 days to either withdraw the funds or roll them over into an inherited IRA. When a beneficiary participant dies, the new beneficiary(ies) cannot continue to maintain the account in the TSP.

The TSP’s Death Benefits Guide clearly states on page 11, “Death benefit payments made from your beneficiary participant account must be paid directly to your beneficiary(ies). These payments are subject to certain tax restrictions and cannot be rolled over to an IRA or an eligible employer plan. In addition, your beneficiary(ies) will have to pay the full amount of taxes on the taxable portions of the payment in the year it is received.”

According to Code 402(c)(9) and (11), the beneficiary of a spousal BPA account is not considered a beneficiary of the employee, which is a requirement for a rollover. Beneficiaries from BPAs are subject to a 10% withholding unless the recipient elects otherwise.

FERS annuitants have considerably larger TSP accounts due to the 5 percent match and increased contribution limits. As of October 1, 2025, there were 189,836 TSP participants with account balances of $1 million or more. Hundreds of thousands more have accounts in the upper 6-figure range. Their heirs could be left with a considerable tax burden the year the annuitant’s spouse passes under the inherited BPA rules.




Simplification

This consolidation reduced the number of RMDs to track and centralized all of our retirement accounts under one roof. Plus, Fidelity doesn’t charge for any trades, and they have numerous financial planning tools available to help manage your taxable and retirement accounts.

Fidelity will also set up inherited IRAs for beneficiaries as directed by the decedent’s beneficiary designations. My wife will only need to notify our Fidelity financial advisor and send them a copy of the death certificate; they will then assist her in distributing the proceeds as designated in the beneficiary designation for that account.

Withdrawals, Transfers, and Distributions

The TSP allows participants to complete their withdrawal and transfer forms online; it’s easy to do. After signing in to your account, go to the withdrawals section and submit the required information. To avoid taxes on a transfer, send the funds to the company that you wish to set up an IRA with or to consolidate the TSP funds into an existing IRA at that firm.

If you are sending your rollover to a company for which you don’t have the contact or bank information listed in your TSP account, you must enter that information and wait 7 days before you can process the rollover.

You can’t transfer your current year’s RMD. You must elect to have the RMD sent to you with the remainder of your account forwarded to the new custodian that you select.

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Conclusion

I dislike leaving something I’ve been involved with for the past 33 years. Yet, it was inevitable and an integral part of our estate planning. The goal of estate planning is to ensure your heirs receive their due and to simplify things for those you leave behind. The fewer accounts you have, the easier it is to settle an estate.

Another significant benefit of rolling over your TSP into an IRA with a firm like Fidelity is that they offer one of the best trading platforms available. There is no charge for trading stocks, mutual funds, and ETFs, plus they offer several mutual funds with no management fees.

Purchasing mutual funds through the TSP’s Mutual Fund Window was expensive and cumbersome. Plus, when the annuitant dies, they close the holdings you have in the mutual fund window and invest it in their general funds.

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

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