Federal Pension Advice and Insights

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AI tax advice for federal employees can be risky because chatbots may deliver inaccurate, outdated, or generic answers on complex retirement tax questions, and you, not the AI, are legally responsible for every figure on your return.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 3, 2026

OPM, the U.S. Office of Personnel Management, has proposed replacing the Douglas Factors framework with a broader "totality of the circumstances" standard. OPM and the MSPB, or Merit Systems Protection Board, published the proposed rule jointly on July 2, 2026.

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.