Federal Retirement Planning Blog

Jul 16, 2026

The 2027 COLA count has dropped to 3.1% through June, down from 3.6% through May, according to FedWeek's tracking of the inflation index used to set the annual adjustment. This is a running count, not the final number. The cost-of-living adjustment (COLA) is the yearly increase applied to federal annuities and Social Security benefits to help retirement income keep pace with inflation.

Jul 15, 2026

Your FERS Supplement can be reduced, and in some cases reduced to zero for the year, if your post-retirement earned income exceeds the annual earnings limit. The supplement also normally ends when you reach age 62.

Jul 14, 2026

Deciding whether to add Medicare Part B to your Federal Employees Health Benefits (FEHB) coverage is one of the biggest choices in federal retirement. This FEHB and Medicare Part B checklist walks you through the main decision points, with the verified 2026 numbers you need to run the math. Federal retirees ask this question often. The checklist below helps you compare premiums, plan benefits, IRMAA exposure, and out-of-pocket risk.

Jul 13, 2026

FERS part-time service usually reduces your federal pension through a proration factor. OPM first calculates your annuity with the standard full-time formula, then multiplies it by the ratio of the actual and credited hours it recognizes to the full-time hours possible during your creditable FERS service.

Jul 10, 2026

The OPM online retirement application is the digital system federal employees now use to file for retirement through the U.S. Office of Personnel Management (OPM), the federal agency that administers civil service retirement benefits. OPM began the government-wide rollout of its Online Retirement Application (ORA) on June 2, 2025, and continued expanding the digital process over the following year

Jul 9, 2026

The proposed NDAs for federal employees are a draft, governmentwide nondisclosure agreement that OPM, the U.S. Office of Personnel Management, published on May 27, 2026. Agencies could administer the form to current and new employees if they choose to adopt it. OPM has also asked for comments on what consequences may apply if employees don't sign.

Jul 8, 2026

AI tax advice for federal employees can be risky because chatbots may deliver inaccurate, outdated, or generic answers on complex retirement tax questions, and you, not the AI, are legally responsible for every figure on your return. Your federal retirement income blends a FERS annuity, TSP withdrawals, and Social Security. Each one is taxed differently. A confidently worded but wrong AI answer can trigger real penalties.

Jul 7, 2026

The Federal Employees Retirement System (FERS) is the retirement plan covering most civilian federal workers hired since 1984. It pays benefits from three sources: a defined-benefit pension called the Basic Benefit Plan, Social Security, and the Thrift Savings Plan (TSP).

Jul 6, 2026

TSP allocation risk is the danger that the mix of funds inside your Thrift Savings Plan (TSP), the federal government's tax-advantaged retirement savings program, no longer matches the time you have left before you need the money. As you approach retirement, an allocation that once helped you grow wealth can quietly expose you to losses you no longer have time to recover from.

Jul 2, 2026

TSP funds performance through June 30, 2026 shows all three stock funds finishing the first half in positive territory, led by small-cap gains. According to FedSmith, the S Fund returned 18.41% year-to-date through June 30, the I Fund returned 16.53%, and the C Fund returned 10.20%. The TSP, or Thrift Savings Plan, is the federal government's tax-advantaged retirement savings program.

Jul 1, 2026

The expected 2027 FEHB changes point to a shift in the Federal Employees Health Benefits (FEHB) Program toward a "well care" model. This model prioritizes prevention, lifestyle interventions, and whole-person wellness over symptom-based treatment.

Jun 30, 2026

OPM VERA, or the Voluntary Early Retirement Authority granted by OPM (the U.S. Office of Personnel Management), lets agencies temporarily lower the age and service thresholds for an immediate annuity so more employees can retire early during a restructuring.

Jun 29, 2026

A mid-year retirement checklist is a structured June or July review of your federal retirement plan. It confirms your Thrift Savings Plan contributions are on pace, your benefit elections still fit your goals, and the year's rule changes are reflected in your strategy.

Jun 26, 2026

Taxes on federal retirement income include the federal and state taxes that may apply to a retired federal employee's main income streams: FERS pension, TSP withdrawals, and Social Security benefits. Most of this income is taxed as ordinary income. Each source follows its own rules, and coordinating them is where retirees may reduce or increase their lifetime tax bill significantly.

Jun 25, 2026

Your FERS pension comes down to one formula: High-3 average salary × years of creditable service × a multiplier of 1% (or 1.1%). FERS, the Federal Employees Retirement System, covers most federal employees first hired after December 31, 1983, with full FERS becoming effective January 1, 1987.

Jun 22, 2026

Many federal employees with strong pension and Thrift Savings Plan income can raise their lifetime income by delaying Social Security until full retirement age or age 70.

Jun 19, 2026

The 2026 federal tax brackets apply to income earned from January 1, 2026, through December 31, 2026. You will use these rates when filing your 2026 federal income tax return in early 2027.

Jun 18, 2026

The best states to retire for federal employees in 2026 include Pennsylvania, Mississippi, Iowa, Illinois, Florida, Tennessee, Wyoming, South Dakota, Nevada, Texas, Alabama, and New Hampshire.

Jun 17, 2026

Here are the TSP funds explained simply. The Thrift Savings Plan (TSP) is the federal government's tax-advantaged retirement savings program. It offers five core investment funds: the G Fund (government securities), the F Fund (fixed-income bonds), the C Fund (large U.S. companies), the S Fund (small and mid-sized U.S. companies), and the I Fund (international stocks).

Jun 16, 2026

As of June 16, 2026, the 2027 federal employee pay raise has not been finalized. The FAIR Act proposes an average 4.1% raise for civilian federal employees, including a 3.1% across-the-board increase and an average 1.0% locality pay increase.

Jun 15, 2026

As of the latest available May 2026 CPI-W data, the running 2027 COLA estimate is approximately 3.6%. This is not the final COLA. The official 2027 COLA will be based only on the average CPI-W readings for July, August, and September 2026, compared with the Q3 2025 average.

Jun 12, 2026

To meet FEHB retirement eligibility, you must retire on an immediate annuity and stay continuously enrolled in the Federal Employees Health Benefits (FEHB) program, the federal government's health insurance system, for the five years right before your annuity begins. If your service is shorter, you must have been covered for your entire period of service since your first chance to enroll.

Jun 10, 2026

Federal early retirement in 2026 means leaving federal service before standard age and service thresholds using two tools: VERA, the Voluntary Early Retirement Authority, and VSIP, the Voluntary Separation Incentive Payment.

Jun 9, 2026

A mid-year TSP check-up is a contribution review you run around June or July to confirm your year-to-date Thrift Savings Plan (TSP) deposits are on pace to hit your 2026 target by the final pay period. Half the year's pay periods are now behind you.

Jun 8, 2026

VA workforce cuts 2026 refer to the U.S. Department of Veterans Affairs' (VA) reduction of nearly 30,000 employees, announced and largely carried out by the end of fiscal year 2025, with hiring restrictions, staffing caps, and workforce effects continuing into 2026.