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The Latest Buzz

Writer: Tammy Flanagan
Tammy Flanagan
5 days ago
11 min read

The Latest Buzz

Summer 2026


Thank you for signing up to receive the Retire Federal newsletter! This edition focuses on continued voluntary and involuntary separations, the latest Federal workforce data, what's new with Retire Federal, recent changes to the Thrift Savings Plan (TSP) for Roth Conversion, 2026 Changes, and much more. 

 

Retire Federal exists to educate you on navigating the maze of your retirement benefits and provide the assistance you need to make informed decisions that lead to fewer delays and greater satisfaction in retirement, knowing you are receiving the benefits you have earned. Please visit our website for more information on our services. Click on the "Get In Touch" button to receive details about one-on-one consultations, including topics, required intake information, and scheduling information.



Voluntary and Involuntary Separations

 

Some departments and agencies are offering the Deferred Resignation Program (DRP) again. Others are under going Reduction-in-Force (RIF). The Office of Personnel Management (OPM) received tens of thousands retirement applications in the last few months. Currently, there are over 55,000 applications still waiting to be processed. This doesn't include the thousands of retirement applications that haven't arrived at OPM due to delays at agency HR offices and payroll providers. Visit here for more statistics. The new OPM Director, Scott Kupor, addressed the backlog. The new Online Retirement Applications (ORA) portal has sped up processing for some; however, many applications are still arriving on paper as the SF 3107 (FERS) or SF 2801 (CSRS) Application for Immediate Retirement are still being used in some agencies.

 

Those retiring will find that the 2025 Special Edition Newsletter contains important information, including guidance on what documents to save and links to webinars on retirement preparation. Most federal employees will complete their retirement application using the Online Retirement Application (ORA). OPM has prepared a video introduction to this new system.

 Interesting Data

 

The Federal government workforce has changed considerably due to the unprecedented downsizing resulting from the January 2025 "Fork in the Road" memo. The current workforce continues to provide essential services in a variety of locations and ways.

 2026 TSP Updates

 

The Internal Revenue Service (IRS) has announced the following limits for 2026:

 

  • Elective Deferral Limit (IRC § 402(g)) $24,500

  • Catch-up Contribution Limit (participants ages 50-59, and age 64 and over) (IRC § 414(v)) $8,000

  • Catch-up Contribution Limit (participants ages 60, 61, 62, 63) (IRC § 414(v)) $11,250

  • Annual Additions Limit (IRC § 415(c)) $72,000

 

The How Much Can I Contribute calculator will help you decide how much to contribute and what changes you may need to make for the year.

 

Roth in-plan conversions in the TSP are now available

 

Did you know that you can convert money in your traditional (pre-tax) balance to your Roth (after-tax) balance in your TSP account? This is referred to as a “Roth in-plan conversion.” If you don’t have a Roth balance in your TSP account, your first Roth in-plan conversion will create one.

 

You’re eligible to do a Roth in-plan conversion if you have a vested "traditional" (pre-tax) balance in your TSP account. You must also be able to meet the minimum amounts explained in this section.

 

Who can do a Roth in-plan conversion: Roth in-plan conversions are available to all TSP participants:

  • Active participants (current federal civilian employees and uniformed services members)

  • Separated and retired participants

  • Spouse beneficiary participants

Non-spouse beneficiaries are not eligible to do Roth in-plan conversions. How much can you convert? The minimum amount for a Roth in-plan conversion is $500.

 

TSP in-plan Roth conversions may be a good idea, but there are things to consider before creating a taxable event you might regret. Federal employees can use a new Thrift Savings Plan tool to weigh the tax costs and retirement benefits of moving traditional balances into a Roth. The Roth-in-Plan Conversion booklet has more details. TSP has a Roth-in-plan calculator too.

 

Catch-up contributions to your TSP account must be Roth contributions if your wages from TSP-eligible positions are above a certain threshold. The IRS wage threshold will be adjusted for inflation and announced annually. (When this law was passed in 2022, the original wage threshold was set at $145,000 for 2023 wages. Currently, it is $150,000 for 2025 wages.) In general, the wages that determine whether this rule applies to you are equal to the Medicare wages listed in box 5 of your W-2(s). For future planning: This means, if your wages for 2025 were greater than the wage threshold ($150,000) and you’re eligible to make catch-up contributions, any catch-up contributions you make for 2026 will go to your Roth balance. Because Roth contributions go into the TSP after tax withholding, you’ll pay taxes on that amount at your income tax rate.


What Retirees Need to Know

 

Your Federal Retirement Benefits  

We strongly recommend that you read the "Your Federal Retirement Benefits" summary that OPM will send via email or USPS shortly after your retirement is finalized. Reviewing the numbers will help ensure everything is correct. It provides the "high-3" average salary used, the amount of creditable service, the unused sick leave balance, the value of your Federal Employees Group Life Insurance (FEGLI), and any payable survivor benefit amount.  OPM announced the retirement booklet is now online, https://www.servicesonline.opm.gov/. You can find it under "Message" and on the Services Online Dashboard after selecting "Documents".

 

Tips when calling OPM

OPM phone lines have been quite busy.  They receive about 6,000 calls per day at 888-767-6738.  We have heard from some members that they are able to get through with persistence. Here are some tips when calling:

 

  • Call early, lines open at 7:40 AM Eastern time.

  • Wednesday through Friday tend to be less busy

  • Have your CSA or CSF number handy

  • We recommend using an earpiece or speakerphone, as you may be on hold for a while.

 

Cost-of-Living Adjustments in Retirement

 

Cost-of-living adjustments (COLAs) for the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS) are based on the rate of inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). COLAs for both CSRS and FERS are determined by the change in the average monthly CPI-W during the third quarter (July to September) of the current calendar year and the third quarter of the base year, which is the last previous year in which a COLA was applied. The "effective date" for COLAs is December, but they first appear in the benefits issued during the following January. According to the Department of Labor's Bureau of Labor Statistics, the CPI-W is up 3.8% since April 2025.

 

Delayed COLA:  Keep in mind that most FERS retirees won't receive their first COLA until they reach age 62 (exception for law enforcement officers, firefighters, air traffic controllers, CIA officers, Foreign Service Officers, survivor annuitants, and disability annuitants). COLAs granted in the first year of retirement are prorated based on the number of months their annuities are effective on December 1 and later.

  

 

Please let your family members, friends, and former colleagues know about the repeal of the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) for those who retired under the Civil Service Retirement System (CSRS). The WEP may have affected their Social Security benefits if they had at least 40 credits of coverage, but had fewer than 30 years of substantial earnings. Most folks who have applied for benefits have already seen an increase in their monthly payment amount, along with a lump-sum payment retroactive to January 2024. Depending on the date of your application, your benefits may not be paid back to January 2024; it is important to apply soon, if you haven't already! The GPO may have reduced or eliminated spousal or survivor benefits paid based on your spouse's Social Security records. We are still hearing from individuals who are not aware of this significant update!  


What Employees Need to Know

 

Your Federal Employment Records - Keep them! 

Your electronic Official Personnel Folder (eOPF) is where your agency maintains the records of your federal career. You will lose access to these records once you have been separated from your federal employment. To access these records, you may need to contact your servicing Human Resources (HR) office or personnel department within the federal agency or organization you work for. These offices will provide you with information on accessing and using eOPF. It is a good idea to maintain a personal copy of these personnel documents, which will ensure that you have "evidence" of important actions and dates of changes during your federal career:

 

 

Retire Federal Offers Retirement Training

 

Retire Federal provides insightful guidance and training on federal benefits to assist civilian federal employees as they plan for their future.  We have provided assistance to clients of financial planning professionals that helps to bridge the knowledge between federal benefits and financial planning.  The Team at Retire Federal believes that proper financial planning requires a good foundation of knowledge about the federal benefits package. Their extensive years of experience will provide clarity and understanding for the complicated retirement planning decisions that federal employees must make as they move through the various stages of retirement.  Retire Federal offers one-on-one consulting, informational webinars, and training seminars. Agencies interested in scheduling training or individuals interested in one-on-one consultations may contact Retire Federal at Info@retirefederal.com. Now is the time to take charge of your retirement and email Retire Federal.

 

Federal employees receive a generous benefits package; however, you may not know the right questions to ask. It is complicated, and misunderstanding the convoluted rules and regulations can lead to decisions you may later regret. We will take the time to review your benefits in plain English, not the bureaucratic language and acronyms typically found on most government documents. We offer sensitive, professional, and knowledgeable benefits training, and we will guide you to ensure you understand and receive the retirement benefits that you have earned and that you deserve from your federal service.



 Insurance Issues

Moving?

  • Inform both OPM, SSA, BENEFEDS, LTCFEDS and TSP using your online accounts

  • You can change your FEHB / PSHB, Federal Employee Dental and Vision Insurance plans if you move outside of the area of coverage.

    Keep in mind that the Dental premiums are based on zip code.

 

Medicare

 

  • If you are not receiving Social Security benefits at age 65, apply for Medicare Part A, whether you remain employed or have already retired. Your initial enrollment period (IEP) for Medicare begins three months before your 65th birthday and ends three months after your birthday (seven months total).

  • To continue contributing to a Health Savings Account (HSA) with a High Deductible Health Plan (HDHP), you may wish to delay Medicare A & B enrollment. See your HDHP Plan Brochure for more details.

  • Recent retirees over 65 and their spouses over 65 who are covered by "current employment" health insurance will have a Special Enrollment Period (SEP) to enroll in Medicare Part B that lasts up to eight months following the retirement date. Enrolling during the SEP will generally avoid the late-enrollment penalty.

  • The General Enrollment Period (GEP) for Medicare enrollment runs from January 1st through March 31st, with coverage beginning the month after enrollment. A 10% permanent late enrollment surcharge (based on the standard Part B premium) is assessed every 12 months from the end of your IEP or the month after you separate from federal service, if later.

  • You have a one-time opportunity using the Event Code 2L to change your FEHB / PSHB plan outside of open season when you are eligible for Medicare.

 

FEHB & PSHB Possible Changes in 2027

 

OPM recently issued its annual call to carriers, outlining recommendations for changes that insurance companies should address in 2027.  Read the following articles for more details:

 

Prior Newsletters Info

 

  • Medicare A, B, C, and D - Winter 2025

  • Common QLE to change FEHB/PSHB plans - November 2025

  • Federal Employees Group Life Insurance (FEGLI) Fall 2022

    • Premium increases every five years up to age 80

    • How to decrease your coverage

  • Records and documents you should keep: 2025 Special Report

  • TSP Required Minimum Distributions (RMDs), Winter 2025

Recent Questions

 

Question:  When should I apply for a postponed MRA + 10 retirement?

 

Answer: You will use form RI 92-19 to apply for a deferred or postponed FERS retirement benefit. If you have at least 10 years of creditable service (5 must be civilian), which will be used to compute your benefit, you must complete either Schedule B or Schedule C of the application. For a postponed retirement, where you will be entitled to reinstate your FEHB, FEGLI, and FEDVIP coverage, you must have reached your FERS Minimum Retirement Age (MRA) before you separated from federal service. Submit your application 60 days (but no more than 90 days) before you want the benefit to begin (but NOT LATER THAN AGE 62). Your benefit will begin on the first day of the month, which is at least 31 days after OPM receives your application for retirement. The benefit must begin before your 62nd birthday to be eligible to reinstate your insurance coverage. If you have at least 20 years of service, your benefit can begin the first day of the month after your 60th birthday to avoid the age reduction.

 

Members of the National Active and Retired Federal Employees Association (www.narfe.org) can find a webinar titled, Postponed & Deferred Retirement: Here’s What to Expect, under the "Education" tab.

 


 Primary Contact Information

 

Office of Personnel Management (OPM)

1-888-767-6738

 

Social Security (SSA)

1-800-772-1213

 

Thrift Savings Plan (TSP)

1-877-968-3778

 

Medicare

1-800-633-4227

 

Federal Employee Group Life Insurance (FEGLI)

1-800-633-4542 (to ask about claim or request Living Benefit form)

 

Federal Employees Dental & Vision Insurance program (FEDVIP)

1-877-888-3337

 

Federal Long Term Care Insurance Program (FLTCIP)

1-800-582-3337

 

Flexible Spending Accounts (FSA)

1-877-372-3337



Mark Your Calendars

 

Valuable training opportunities available for members of the National Active and Retired Federal Employees (NARFE) Association in 2026 through the NARFE Website Education Hub to help you have a smooth transition in retirement:

 

  • Should I Stay or Should I Go?

  • Navigating Federal Benefits in Uncertain Times: What Current and Recently Separated Feds Need to Know

  • Affairs in Order - Survivor Benefits for employees and retirees

  • Family Benefits in Marriage, Divorce, and/or Remarriage

 

Visit to view on demand: https://www.narfe.org/education/narfe-webinars/webinar-archive/

 

Coming Attractions

 

  • June 18 - Prepping for Retirement

  • June 25 -The Retirement Process

 

Go here to register,  https://www.narfe.org/education/narfe-webinars/. Some may be available to register later.

 

The National Active and Retired Federal Employees (NARFE) Association's Federal Benefits Institute has a library of archived webinars. Annual NARFE membership is $48, including all new and archived webinars and a monthly issue of NARFE's award-winning magazine. If you were a Retire Federal client in 2025 or 2026 who received a full pre-retirement consultation, you were gifted a free membership for one year!        

 

Additional Learning Opportunities

 

Retirement Planning is the name of Tammy's weekly column appearing on www.govexec.com.  It covers what you need to know for a successful transition to retirement. Get the latest stories and updates sent to your inbox every Friday.

 

FEDChicks Podcast:  Launching this summer! Tammy will be one of the first guests! The show will be hosted by three retired federal agents sharing real talk about careers, retirement, true crime, and life after law enforcement. From EOD to retirement and beyond, FEDChicks™️ is part career counseling, part life coaching, part true crime - and always lots of fun. Watch for it!

 

FEDUPWARD Podcast with Love Rutledge (Tammy Flanagan is the guest): Are You Missing Out on Better Federal Benefits?

 

Thrift Savings Plan

 

TSP has live online training available. Sign up to attend a presentation today! Visit the TSP Website for additional information about the Retirement Enhancement Act of 2022 (Secure 2.0), such as changes to Required Minimum Distributions (RMDs), reduced excise tax on missed RMD payouts, and the news that Roth balances are no longer subject to RMDs (prior to your death).

 

Social Security

 

The Social Security Administration has informative videos and websites:


Need Individualized Help?

 

As many of you know, Retire Federal exists to provide one-on-one consultations that help federal employees plan for retirement and federal retirees with post-retirement decisions, including Medicare coordination, death benefits administration, and addressing issues or problems with OPM, SSA, and TSP. Contact us to schedule your next appointment with one of our experienced retirement benefits experts.

 

Retire Federal maintains a trusted provider list for those who need a financial planner or an estate planning attorney.




CONTACT US

 
 
 

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