FedSmith

For the first time in more than two decades, the Federal Labor Relations Authority (FLRA) has a Republican president in the White House, a Republican majority on the three-member Authority, and a Republican General Counsel. The current leadership at the agency consists of the Chairman, Colleen Duffy Kiko, and Member Charles Arrington, both of whom were appointed by President Donald Trump. Member Anne Wagner was appointed by President Joe Biden.

A lot of federal employees expect their taxes to drop in retirement. And for most Americans without a pension, that’s often true. But if you’re a FERS or CSRS retiree, the math works differently. Your pension, your Social Security, and your TSP don’t show up as three polite little streams. They arrive as one big river, and by the time you pull from your TSP, every dollar is taxed at your highest marginal rate.

Four federal employee unions sued the Office of Personnel Management (OPM) on August 24, 2026, arguing that two new rules that are already in effect and reshaping how federal employees can be fired violate federal law. The unions are asking the court to strike down both rules and to issue an injunction blocking their enforcement. The lawsuit was filed in the U.S. District Court for the Northern District of California.

For many federal employees, retiring under Minimum Retirement Age (MRA) + 30 feels financially achievable. The pension begins immediately. The FERS Retirement Supplement may provide additional income. The Thrift Savings Plan (TSP) becomes accessible without early withdrawal penalties. FEHB coverage can continue into retirement. On paper, the system appears relatively stable. But one of the biggest risks facing early federal retirees is not always investment performance, taxes, or inflation.

The IRS has laid out proposed guidelines detailing exactly what a Trump Account can invest in, and it is stricter than a lot of parents might assume, even banning the option to invest in ESG funds entirely. A proposed rule announced on August 20, 2026 spells out the investment rules for Trump Accounts, the tax-advantaged savings accounts the government is setting up for kids. The rule is expected to affect roughly 85 million children who are eligible for the accounts.

https://youtu.be/6QjfzaZuARw The Office of Personnel Management (OPM) will require federal agencies to verify 100% of the family members added to Federal Employees Health Benefits (FEHB) or Postal Service Health Benefits (PSHB) coverage during this fall’s Open Season, replacing the 10% minimum sample review that has applied since 2024.

Here’s the deal: throughout your retirement, there are going to be down markets multiple times. That’s just how it works. Every few years, there’s going to be a fairly significant one, and every ten years, there’s going to be a really big one. That’s just how it has happened over the last decade. It’s not a matter of trying to avoid a down market in retirement because you’re not going to. If your retirement is any length at all, you will experience them.

For many federal employees, retirement planning becomes significantly more complicated after divorce and remarriage. Most employees understand that a former spouse may receive part of a pension or TSP balance after divorce. What many do not fully realize is this: benefits awarded to a former spouse can directly affect the financial security of the current spouse — especially if the employee retires early under MRA + 30.

President Trump has not yet sent Congress the alternative pay plan letter that will determine the 2027 federal pay raise, and the statutory deadline to do so arrives August 31. The letter is the clearest remaining signal of whether federal employees face a full pay freeze next year or another modest increase similar to the one delivered a year ago.

Federal employees spend decades building assets. They track their Thrift Savings Plan balance, monitor annual returns, and watch their net worth grow. But retirement is not an asset problem. It is an income problem. For retirees under FERS, success is determined less by total portfolio size and more by whether reliable income consistently exceeds expenses — through market cycles, tax changes, Medicare premiums, and eventually, the loss of a spouse. Cash flow is what turns savings into stability.