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Posted on Thursday, 7th August 2025 by

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Each year, we publish a comprehensive leave record that federal employees can use to track their annual and sick leave, comp, and credit hours used. Our updated 2026 Excel Leave Chart is designed for active federal employees who are planning their retirement and need to establish realistic target retirement dates. This spreadsheet also helps federal employees maximize their annuity through prudent management of their leave balances.

This leave record tracks all leave balances, and you can annotate your work schedule on the spreadsheet. Download the spreadsheet to your desktop for easy availability and please share it with everyone in your agency.

2026 Leave Record, and Schedule Tracker

 

  ICE is Hiring 10,000 Agents, Many with Signing Bonuses
(Annuitants Encouraged to Apply)

 Retire With More

Most employees approaching retirement plan to increase their annuity and lump sum payments by maximizing their annual leave buy-back and sick leave balances. Convert your unused sick leave to increase your annuity for the rest of your life! Well worth the effort. I sold back a full year of sick leave, 2087 hours, that added an additional year of service for my annuity calculation.

A federal employee who separates from the Federal service is entitled to payment, in a lump sum, for all unused annual leave accrued through the last whole pay period before separation.

Federal employees are allowed to carry over up to 240 hours of annual leave each year. Many, in the last year of work, apply their carryover balance to most, if not all, of the annual leave they accrue before retiring.

I sold back the full 240 hours of carryover leave plus the 208 hours I accrued in my last year of employment. This amounted to almost three months of pay, less taxes owed, that I received in a lump sum payment 6 weeks after retiring.  Review my retirement timeline to get an idea of what to expect the first three months after retiring.

The 2026 Leave Record Chart

Download the 2026 Leave Record Chart

If your spreadsheet opens in protected view, click the “enable editing” button in the yellow bar at the top of the form. However, if you don’t see the enable editing button, you may have an older version of Excel, or your IT department may have to allow the form to pass without restrictions. We also included a newer slsx workbook version that you can use if you have problems with the earlier version.

According to a Microsoft Office consulting firm, if the spreadsheet only opens in protected view status and the newer slsx version doesn’t correct the problem, talk with your IT staff. Some agencies increase their security settings to lock out certain documents based on set parameters. We include several hyperlinks in our spreadsheet to link users to additional supporting information, such as our sick leave conversion chart, and that may be the cause.

2026 holidays

*This holiday is designated as “Washington’s Birthday” as defined by the law.

**If a holiday falls on a Saturday, for most Federal employees, the preceding Friday will be treated as a holiday for pay and leave purposes. If a holiday falls on a Sunday, for most Federal employees, the following Monday will be treated as a holiday for pay and leave purposes.

Summary

The earlier you start preparing for retirement, the better. Set several retirement target dates, request annuity estimates from your HR department for selected dates, and review your annual and sick leave balances to maximize your annuity and leave buy-back amount.

Use our FREE online Retirement Planning Guide to help you through the process. One of our site visitors said, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all of my answers! Thank you!!!”

Take advantage of this free service to explore your benefits, estimate pre- and post-retirement income, expenses, and costs, and determine whether or not you are financially, physically, and emotionally prepared for retirement.

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, SURVIVOR INFORMATION

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Posted on Friday, 1st August 2025 by

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Last January, the Federal Reserve kept the fed funds rate steady at the 4.25%-4.5% range, pausing its rate-cutting cycle after three consecutive reductions in 2024. During their July 2025 meeting, they decided to continue the pause in the interest rate-cutting cycle that began in September 2024.

After Chairman Powell’s announcement, the DOW Index dropped over 700 points by the end of the week. Investors were hoping for an interest rate decrease of at least a quarter point.

This rate-cutting pause could hold short-term at least until September. Some economists are anticipating two rate cuts by the end of the year. However, the Federal Reserve board is driven by data, and no one has a crystal ball foretelling the economy’s performance and future job reports.

While the stock market offers the potential for higher gains, it doesn’t come without risks for those approaching retirement and retirees, even as the market has reached new highs several times in July.

 

Treasury Bill Rates Still Attractive

According to the FDIC, the national average yield on savings accounts has dropped to 0.38% APY. However, high-yield savings accounts are offering rates up to 4% or more. It pays to look around for higher yields or consider short-term Treasury Bills.

The average savings account rate would earn just $38 per $10,000 savings for the entire year, and a 4% yield would earn $400 for the year. Quite a difference.

Short-term Treasury Bills are still attractive. You can select auto reinvestments for up to two years, and these can be canceled at any time if the funds are needed. The rates change for each new issue. However, the shorter-term (4, 8, 13, and 17-week) Treasury Bill yields have averaged 4.3 percent over the past year, and the 10-year Notes recently yielded 4.39 percent.

Although the Federal Reserve intends to reduce rates over time as conditions warrant, Treasury Bills continue to earn attractive yields. Treasury interest payments aren’t subject to State taxes, a tax savings for all.

Treasury Bill Investment Rates

Treasury Note Investment Rates

It is generally recommended to purchase Notes and Bonds through your broker, and I personally limit my purchases to new-issue bonds.

Treasury Notes and Bonds must be sold on the secondary market. If you purchased them from Treasury Direct and decide to sell them before maturity, they must be transferred to your brokerage account. This can take several weeks to a month or longer in some cases.

A 20-year Treasury Bond with a 5 percent coupon, yielding 4.9355 percent, was available from the Treasury last week, as noted in the following table. Some buy long-term bonds on the assumption that interest rates will fall later this year or early next year, while locking in a rate just under 5 percent. Rates could go either way depending on various factors; you never know what changes will influence the market.

There is a significant risk to long-term bonds; they are highly rate-sensitive, and bond prices move inversely to interest rates. If bond yields decline, the value of existing bonds on the market increases. If bond yields rise, existing bonds lose value.

The value of a 20-year Treasury bond will change approximately 20% for every 1% change in interest rates. Therefore, a 2% rise in interest rates would cause the bond’s value to fall by roughly 40%, while a 2% decrease would cause the bond’s value to rise by roughly 40%.

This is significant, especially if you will need to tap these funds. However, if you keep the bond to maturity, there is no risk; you will collect the specified yield through the bond’s term, and your entire initial investment will be returned to you after the bond matures. Interest is paid semiannually.

As a 20-year bond approaches its maturity, its remaining term shortens, decreasing its duration. This makes it less sensitive to interest rate moves. For example, a 20-year bond held for 10 years would have a 10-year duration. Consequently, a 1% change in interest rates would result in a 10% change in the bond’s value.

Treasury Bond Investment Rates

Purchasing Treasury Bills, Notes, and Bonds

Visit TreasuryDirect.gov to register, explore the options, and purchase Treasury bills, notes, bonds, TIPS, and savings bonds. You are buying directly from the government and eliminating the middleman; no fees are charged for purchases.

Most brokerage accounts offer clients access to Treasury auctions and will purchase them for your account; they can be sold on the secondary market if needed. Here is more information on the Treasury’s programs:

Note: If you buy a long-term Treasury Note or Bond, you can only sell it on the secondary market through a brokerage house. If you purchase Notes and Bonds on Treasury Direct, you must transfer them to your private brokerage account to sell them before the maturity date. I only purchase long-term Treasuries through my broker in case I need to sell them before maturity.

CDs and Savings Bonds

Many banks and credit unions are offering competitive rates for savings accounts and CDs, from 3.5 percent to higher in many cases. Rates are not falling as quickly as the Fed anticipated, and I’m still rotating savings through short-term T-bills at attractive rates. CDs have no market risk if you stay under their insured FDIC limits.

Treasury Notes currently offer anywhere from 3.75 to 4.25 percent. The shorter the duration of the Note you purchase, the less sensitive it is to interest rate changes. For example, if you purchased a 5-year Treasury Note, a 2% rise in interest rates will cause the Note’s price to fall, while a 2% fall in interest rates will cause the Note’s price to rise.

The price change depends on the Note’s duration, which is approximately 4.5 years for a 5-year note. Generally, a 1% change in interest rates results in a price change of roughly 1% for each year of duration or 4.5% in this example.

Here is What’s in the President’s New Spending Bill

I-Savings Bond Rates

I Bonds issued from May 1, 2025, to October 30, 2025, are earning 3.98%. This includes a 1.1% fixed rate. You can’t cash them in for one year. Plus, if you redeem them within the first five years, you lose three months’ interest.

If the I Bonds that you purchased previously didn’t have a fixed rate, you will only earn the inflation rate when the new rates are announced for the next six months. I Bonds with a high fixed rate are a great buy; some of my early I Bonds have over a 3% fixed rate and are currently earning 5.88%. Here is a table that shows what I Bonds are earning today based on the date of purchase.

Many I-bonds were sold with a zero fixed rate, which can dramatically reduce returns as the inflation rate decreases. For example, I Bonds issued between May and October of 2022 were paying 9.66%. However, they had a 0% fixed rate; those same bonds are now paying 2.86%. They can be cashed in and the funds reinvested in higher-yielding short-term Treasuries or CDs. The Treasury will charge a 3-month interest penalty for any I bond under 5 years old.

On the flip side, when the inflation rate goes negative, like it did in the late 1990s, I-bonds don’t decrease in value.

Market Observations

The stock market has been on a winning streak lately, hitting new highs throughout July. For the most part, we have all seen our TSP, other retirement, and taxable accounts increase in value, sometimes dramatically. The market is like a roller coaster cycling up and down based on political stability, company profits, employment figures, CPI, inflation, and so many other factors, too numerous to mention.

This highlights the necessity for those planning their retirement and retirees to consider more stable fixed-income investments, as outlined above. This is especially true if the stock market is keeping you up at night.  We are elated when the market is up and depressed when it goes down, as evidenced by our most recent monthly account statements.

Summary

The rule of 100 still applies for those approaching retirement. Subtract your age from 100, and the remainder is what many financial planners consider a conservative investment mix to reduce risk as we age. For example, if you are 65, according to this formula, you should have only 35% of your retirement portfolio in stocks, with the rest in bonds, money market accounts, and cash.

I still prefer to invest in the safety of Treasuries, CDs, conservative stocks, mutual funds, and market leaders that have been around for many decades, pay dividends, and have sound fundamentals. Many retirees set aside a small portion of their investments for the more aggressive growth stocks, mutual funds, and ETFs of the day.

CDs and Treasuries are viable options if you can lock up your discretionary savings and investments for a period of time. As noted on the above charts, Treasury Bill have been holding fairly steady this year.

Short-term T-Bills and Bonds continue to provide impressive yields, considering many banks still low-ball their savings rates for established accounts. These banks are betting on the reluctance of many to move funds from their savings and checking accounts elsewhere.

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 BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Sunday, 27th July 2025 by

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With many taking advantage of deferred resignation, early outs, or simply deciding it’s time to retire, start the military deposit paperwork immediately if you haven’t already done so. There is a free webinar at 7:00 pm on July 31st about savings for retirement that you may wish to take advantage of.

FERS retirees with post-January 1, 1957, military service will not receive credit or annuity computation for their military time without making a deposit. If a deposit is made, the employee will receive credit towards his/her annuity computation.

Under CSRS rules, if you served on active duty and will be eligible at age 62 to collect Social Security, your CSRS annuity will be reduced by the number of years that you served unless you buy back that time.

Options

Federal employees have the option of making military service credit payments for creditable military service before they retire. I bought back my 3-plus years of active-duty military time when I discovered that my CSRS retirement annuity would decrease at age 62 if I didn’t.

All FERS employees and CSRS employees who anticipate having at least 40 quarters or 10 years of work under Social Security at age 62 should consider paying back their military time. Otherwise, your annuity will decrease. In my case, the cost was minimal, $650 total, and I was able to pay $25 a pay until the debt was settled. Deposits for military service from the 1980s and up can be substantial because military pay increased dramatically.

The earlier you initiate the payback, the less interest penalties you will pay. I suggest buying it back early in your career, even if you are CSRS and aren’t sure you will be able to collect Social Security. You can always have the payment refunded before you retire if you are certain that you won’t have the 40 quarters necessary to collect Social Security. My military pay was meager, $97 a month, in 1969 when I was in the Air Force.

Confusion Abounds

There is considerable confusion about whether it is worthwhile to recoup your military time. If you make a military deposit, there is no effect on your other military benefits, such as medical benefits, base access, commissary, or VA benefits, including any disability payments from the VA. Visit our Military Credit section for complete information on this subject.

It only affects (active duty) retired military pay; you cannot receive 2 separate retirements (military and civilian) for the exact same period of service. If you are retired from active duty and elect to buy back your 20+ years of military service, your military retirement will cease once you begin collecting your federal civil service annuity. Reserve or National Guard members under Title 32 can collect both a federal civil service retirement and a Reserve or National Guard retirement.

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.

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

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Posted on Thursday, 24th July 2025 by

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Kiplinger Retirement Newsletter’s recent article, “How to Tell Your Own Life Story,” was on the mark. They say, “There is one vulnerable asset we tend to overlook: Our stories.” This is so true, and it was a driving force behind my decision to write and publish my memoir, “The Early Years, A Road Less Traveled, in 2020.

Book Cover for Memoir

This is not a self-promotion for my memoir, which is out of print. Actually, I gave away most of the copies. I wrote it for family, friends, and those who have followed my columns, blogs, and websites for decades.

I wanted my children and grandchildren to know how their ancestors lived and struggled to make ends meet, nurture, and raise a family during austere times. A personal family history that family members can cherish and pass on long after I’m gone. Hmm, where am I going?

Today’s generation and our children were raised in a completely different manner from how my wife, Mary, and I were raised in the 1950s and 1960s. What most people take for granted today were profound and unimaginable luxuries during my childhood.

Regrets – I have a Few

I can’t tell you how many times I regret not asking my mother, aunts, and uncles about their early lives. Just sitting down with them and having a frank discussion about their recollections would have been revealing. New generations need to hear about how different and difficult everything was for many of those who came before them.

Simple things – I loved my mother’s macaroni and cheese, and I don’t have her recipe. It didn’t have the consistency of today’s offerings; it had a burnt cheese crust that we fought over at dinner time. I’ve tried to replicate it several times without success. Fortunately, I have snippets of my family’s history that I included in my memoir.

I knew little about my mother’s early years; her parents had 10 children. They made ends meet, all they could do on a coal miner’s salary in those days. It could also be due to the fact that she, along with her brothers and sisters, never had much of a childhood at all.

My mother and most of her siblings were forced to drop out of school after the 6th grade and were sent to work throughout the Pittsburgh area. My mother worked as a maid for $2 a week, which included room and board. She was just 13 years old! Her father collected all but 25 cents of her weekly salary!

Here is What’s in the President’s New Spending Bill

Your Story

James Hagerty, the author of Kiplinger’s article, says, “Your story may be the best gift to your friends and family, and it’s a gift only you can give.” Yes, others know bits and pieces of your story, but even those recollections are often diminished by time and circumstance. You are the key to presenting the story firsthand without others’ interpretations.

Tom, a friend I worked with for many years, relayed stories of growing up in Swissvale in the 1960s. I lived just down the street in Wilkinsburg, PA. We would often swap tales of our misadventures, and Tom would talk about his escapades with his cousins, family, and friends, which I always found interesting. These adventures and our early memories are the foundation for starting a memoir or whatever you want to call it.

I wonder if Tom’s family knows about the huge model boat he discovered in the wall of a condemned building and what he did with it, or many of the other youthful antics. Probably not, but they would find them amusing.

On the Mark, Get Set, Go!

The hardest part of any endeavor is getting started; once you commit, a routine emerges, and things start to fall into place. My first step was to write the Preface, which essentially summarizes what the book is about from a personal perspective with succinct observations. An excerpt from my Preface follows. Can you envision where I was going with my memoir?

“Life in the mid-twentieth century was all one could imagine of that time, a Forrest Gump world running at a snail’s pace. The only cell phone we encountered was in the comic strips when Dick Tracy was all the rage. Computers were relegated to large research facilities, filling huge rooms with vacuum-tube equipment racks that emitted ambient light and illuminated the room’s interior.

Airplanes were becoming increasingly popular after World War II, but most still relied on trains and trolleys to get where they needed to go. The middle class bought cars and homes at a feverish pace, yet most could only dream about living the “life of Riley,” an expression coined from an early 1950s TV sitcom. We watched Father Knows Best, The Donna Reed Show, and others that represented the ideal traditional family, infusing our dreams with visions of a stable, satisfying life surrounded by family and friends.”

Towards the end of the Preface, I go on to state, “This is my story, a collection of recollections from a life filled with high expectations, daunting challenges, and a large dose of reality, experienced in a multitude of environments and circumstances. All of which helped me become who I am today. It’s a story of our family’s early trials, tribulations, and successes all rolled into one.”

A Preface sets the tone of the book; without it, it’s equivalent to traveling across the country without a map or GPS. I included the complete Preface, Dedication page, and Chapter One for all to read on my site.

As a courtesy to my dedicated followers, I’ll post a PDF file on my site each week with another chapter of my memoir. You can now read Chapter Two online. The chapter will be available for only one week, after which another chapter will be posted.

Your Story Outline

The next step is to develop a story outline that highlights the times in your life or events you wish to share with family and friends. I began with my mother and father’s early lives, including how they met, and provided a brief overview of their families. Then, I focused on each stage of my life, to age 35 and beyond.

Your story can focus on anything you wish to share with others, or on a specific event in your life. Jack Myrtha, a member of my parish, wrote an exceptional memoir calledThe Hunny Bunny: A Young Girl’s Life with a Congenital Heart Defect,” which is both tragic and beautiful. A heart-wrenching journey about his beautiful daughter Katie’s short life and the trials and tribulations they encountered through her life’s journey.

John and Krista Myrtha were staunch patient advocates for their daughter, questioning caregivers and researching her affliction to ensure their daughter received the best treatment possible from those who cared for her.

Charles Coulter, the father of good friends of mine, aggressively researched their family history throughout his life. He and other family members developed an extensive family tree, and Charles wrote a book on the subject many years ago that he passed onto to his children. The Coulter brothers have relatives across the country and believe they are related to John Colter, the famous western explorer, that was on the Lewis and Clark expedition.

What Story Will You Tell?

I wrote my memoir because my early childhood made me stronger, teaching me to appreciate what we have, spend with care, focus on the family, and save for a rainy day. Hopefully, it will help our children and grandchildren appreciate what they have and the support they received in life.

Many today still struggle to make ends meet and put food on the table, a situation I recall well from my youth. It doesn’t matter where you came from, whether you’re rich or poor; everyone has interesting and inspirational stories to share with others, what they did, and how they got to where they are today. Hopefully, with helpful suggestions and perspectives for those who will follow us in this life. The who, what, where, and why of our existence.

What do you want your family and descendants to know about your life? No matter what it is —a biographical sketch or a major event —once written, you will discover immense satisfaction from the effort, and your family will appreciate having your memories preserved and passed on to future generations.

The Long and Short of It

You don’t have to write a formal book; you can if you wish, and there are many companies that will help you compile your work if needed. It can be a handwritten journal, a file on your computer, or printed out using Microsoft Word or any other word processor. You can even package a photo journal at Walmart or other stores.

Bob and Gary Coulter, traveled cross-country from Pittsburgh, PA, to California and back twice over the past three years on Harley motorcycles. By the way, one of the two was 80 years old at the time! Bob’s daughter used their pictures to compose a beautiful travel journal at Walmart for her dad and uncle. A treasured keepsake that the entire family and friends enjoyed.

Gary & Bob Coulter’s Cross-Country Trip

Don’t be concerned about your writing style, grammar, or spelling; software programs will help you through all of that and much more. Once started, you will be drawn into the work and think of little else until it’s finished.

The beauty of writing a memoir is that no standard format applies; make it whatever works for you. Most of the memoirs I’ve read had few pictures; I used 144 photographs in my book, each accompanied by captions, and included a family history that I compiled over the years.

Pictures add a personal experience, such as my son’s first haircut, prom and wedding pictures, family gatherings, and so much more. Pictures can be lost, but a book is an archive of your life’s experiences and can be passed on for generations.

Don’t procrastinate; time passes, and your initial interest may fade along with your memories.  My memoir was on my bucket list for over a decade, and of the 28 books I’ve written, it was by far the most enjoyable project I’ve ever worked on. Two years well spent. Our time on this earth is finite, and at 76, I’m acutely aware of life’s limitations, which my body reminds me of daily.

As a final note, I was unable to provide a link to the Kiplinger article because it is only available to Kiplinger Retirement Report subscribers.

Helpful Retirement Planning Tools

Join other federal workers on the FedWork Network.
Sign up for this Free Service to get started.

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information 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 should not be considered investment advice and 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, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Thursday, 17th July 2025 by

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Please forward this to others needing retirement planning assistance.

Many federal employees are actively considering retirement today due to early, regular, and deferred options that are now or soon will be available as downsizing initiatives continue throughout the federal sector.

The reconciliation bill includes funding for the major reorganizations, reductions in Force (RIF), and relocations that will result from shedding 10 percent or more of the total federal civilian workforce. Now more than ever, those affected are seeking guidance on how to proceed and protect the benefits that have accrued during their careers.

Finding Your Way

Those planning their retirement and annuitants require accessible resources tailored to their specific situation.

It’s often frustrating and challenging to find competent help. There are many variables to what initially might seem like an obvious resolution; it makes sense to seek out clarifications. There are limits to what OPM can provide.

Retirement planning is, in itself, a complex process with numerous avenues to explore. Fortunately, help is available; what service you require depends on the complexity of the issues and the level of assistance you personally need. Please forward this to others needing retirement planning assistance.

LEVELS OF ASSISTANCE

  • General Assistance
  • Comprehensive Guidance
  • One-on-One Counseling / Assistance

GENERAL ASSISTANCE

Retirement Planning Seminars

Contact your HR department to sign up for a retirement planning seminar. They cover FERS and CSRS employees (including Special provisions) and may be offered in Full or Half-day sessions. The information is generally divided into seven key areas:

  • CSRS or FERS retirement annuity
  • Thrift Savings Plan (TSP)
  • Voluntary Contribution Plan (VCP) – CSRS and CSRS Offsets only
  • Federal Employees Group Life Insurance (FEGLI)
  • Social Security
  • Federal Employees Health Benefits (FEHB)
  • Federal Employees Dental and Vision Insurance Program (FEDVIP) and disability programs

OPM

The Office of Personnel Management (OPM) serves as the HR department for the federal government, administering the retirement benefits program. Active federal employees can research various aspects of retirement on OPM’s site. However, federal employees must contact their agency’s HR office to initiate the process. OPM has helpful retirement planning tools and guides that all should review and use when exploring their options:

OPM services the federal retirement community. If you are an annuitant (retiree), call or use their online services portal to obtain current benefit information, related documents, and payment statements online if registered for their service.

It’s not easy getting through to them by phone, and when you do, expect long wait times. OPM is the only entity that can effect desired changes or update your records.

Federal employees with retirement questions should contact their HR department; OPM only services annuitants and survivors. Your HR department will explain your benefit options and arrange for you to attend a retirement seminar.

COMPREHENSIVE GUIDANCE

Federal Employee’s Retirement Planning Guide (www.federalretirement.net)

I launched this site in 2004 when I was planning my retirement. It is designed to help federal employees and retirees find the information they need to make informed decisions about their benefits and retirement.

A site visitor commented, “I spent 3 hours on the web looking for answers to questions concerning federal retirement. After a Google search yielded your address, it took only 20 minutes to find all the answers I needed. Thank you!!!”

How to Find Essential Retirement and Benefits Information on This Site

Abundant retirement planning guidance is compiled from a multitude of federal agencies: OPM, Social Security, Medicare, TSP, the Department of Labor, and others. Use the main menus and search box at the top of each page to find benefit clarifications, financial planning guidance, FERS / CSRS eligibility determination, annuity estimates, and suggestions that you won’t find elsewhere. The related blog and weekly email newsletter offer advice on current topics of interest.

Federal Employee’s Retirement Planning Software (https://fedretiresoftware.com/)

This easy-to-use and reasonably priced software is uniquely designed for federal employees (full-time, regular CSRS and FERS) to calculate their federal benefits, from start to finish, throughout retirement. You can also add income and/or expenses from other sources.

This calculator is used by tens of thousands of federal employees as well as Federal HR departments to make informed retirement planning decisions. Check out their Sample Report to get a better understanding of how comprehensive their calculator is for federal employees planning their exit.

ONE-ON-ONE COUNSELING / ASSISTANCE

Often, individuals require expert assistance to address complex issues and make informed decisions about what is best for their situation. A professional federal benefits consultant can address your concerns and answer any questions that you may have.

Here is a list of those you can contact to help you address your concerns when the research you’ve done hasn’t provided an answer.

Pensioned Americans Retirement Company (PARCO)

This easy-to-use, free platform enables all Federal Employees (FERS, CSRS, Special FERS, and FSPS) to view all their benefits and optimize their federal retirement. PARCO’s Platform is what I wish existed when I was planning for retirement, and it is used by thousands of FERS and CSRS employees across the country and around the world.

Their team comprises the best federal fiduciary retirement experts who will help you maximize your pension and the benefits that accompany retirement. Their platform guides you through the process step by step.

Federal employees complete their online profile, and PARCO evaluates where you are and what you may need to do to achieve your retirement goals. They put you in touch with specialists who can address your concerns and recommend a personalized path to keep you on track.

 

Retire Federal

This consulting firm is owned by Tammy Flanagan, a federal benefits expert who has been assisting feds since her days of employment with the Federal Bureau of Investigation. She and her staff of experienced counselors offer invaluable fee-for-service personal consulting for civilian federal employees and annuitants, covering pre-retirement preparation to post-retirement decisions and events.

Their staff will assist you with a thorough review of your pre-retirement tasks and help you determine whether to enroll in Medicare Part B and which FEHB plan will best coordinate with your situation. They can address your concerns, answer questions, recommend options, provide details as to why one path is preferred over another, and put your mind at ease.

Consultant – Divorce Related Issues for Federal Employees

Ann Ozuna is a retired Personnel Management Specialist.  She founded Personnel Solutions Federal Benefits Counseling upon retirement from federal service in 1996. In addition to her 25-year federal personnel career, she holds an MBA from Gonzaga University and the Senior Professional in Human Resources (SPHR) and Chartered Federal Employee Benefits Consultant (ChFEBC) designations. She provides consulting services for federal employees facing divorce and attorneys working with federal clients.

If you need answers to retirement questions or don’t know what options are best for you and your family, use the resources listed above or other reputable services.

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information 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 should not be considered investment advice and 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 on Friday, 11th July 2025 by

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The Department of Veterans Affairs announced on July 7, 2025, that it’s on pace to reduce the total number of VA staff by nearly 30,000 employees by the end of the fiscal year. Employee reductions through the federal hiring freeze, deferred resignations, retirements, and normal attrition have eliminated the need for a RIF.

During President Clinton’s term, he reduced the federal workforce by 400,000, with most of the staffing reductions achieved through normal attrition, the Voluntary Early Retirement Authority (VERA), often accompanied by a $25,000 Voluntary Separation Incentive Payment (VSIP), and by not filling non-critical staffing vacancies.

I believe much of the same will account for the majority of downsizing initiatives by the new administration, considering they also offered deferred resignations initially with almost 8 months of severance pay.  Other agencies will surely follow suit to avoid RIFs.

OPM’s Retirement Application (ORA) Portal Clarification

Paul, a site visitor who recently retired, sent clarification on accessing OPM’s portal using a private email address.

In my ORA article, I mentioned that only those with a .gov email address can access the portal.  Those who accepted a deferred resignation under the Fork in the Road program had no access to government resources or agency email accounts.

The former employee’s Human Resources office must submit their non-government email address, which they will use to complete their retirement application, to the portal. This email address must match the one provided by the employee to HR.

The separating employee then logs into the ORA portal using that email address via “Login.gov”.  Paul completed all required steps in the ORA portal using his personal Gmail address with no issues.

Paul advised that you can use a private non-government email address if it is “pre-authorized” by HR.

New Car Interest Deduction

This new deduction is not only beneficial for many new car purchases but also benefits American-made cars and foreign models assembled in the United States. The One Big Beautiful Bill Act allows auto loan interest deductions of up to $10,000 per year for interest paid on a qualifying auto loan, good news for many but not all.

Fortunately, this tax break starts with purchases made in 2025 and runs through 2028, and you don’t have to itemize to claim the deduction.

Qualifying Criteria

  • New cars must be assembled in the United States, excluding many imports including popular Toyota, Nissan, and Honda models.
  • The deduction is limited to $10,000 per year and is eliminated for individuals earning more than $100,000 or couples making over $200,000. This will exclude many households.
  • The deduction applies to cars purchased after December 31, 2024, and is limited to vehicles assembled in the U.S.
  • This is a temporary tax break, available starting this year and ending in 2028. These dates could be extended when they run out by the new Congress.
  • ATVs, trailers, and campers wouldn’t be eligible.

The Big Beauty Bill Act ends federal tax incentives for electric vehicles. It also reduces penalties for automakers that violate fuel efficiency standards.

No Taxes on Social Security Clarification

I received several comments about the article I wrote on this subject. A newsletter subscriber commented, “I believe your most recent article, ‘Social Security Tax Relief for Millions of Senior Citizens, ‘ is misleading. The bill does not contain any provisions to eliminate or even reduce taxes on Social Security. What it does do is reduce some people’s taxes through a new temporary $6,000 deduction for about 24% of seniors.”

He further states, “Social Security in a message many labeled as partisan, said the legislation included a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries”. You parroted that message, yet it bears repeating that the bill does not contain any provisions to eliminate or even reduce taxes on Social Security.”

He referenced several articles from the Washington Post, CBS News, and The Hill.




My Reply

The Senate and House Parliamentarians didn’t allow changes to the Social Security tax code in the reconciliation bill. Hence, the House and Senate worked around that and developed a senior deduction that provided a similar result, fewer taxes for many seniors.

The bill provides relief in a way that could be included in the bill. The House only approved a $4,000 deduction, and the Senate increased it to $6,000. This bill, along with the new senior deduction, will be a huge help to many. The partisan articles you mention left out these details and didn’t credit Congress for what they did accomplish, tax relief for seniors.

I generally use source documents for my research; for this article, I used the One Big Beautiful Bill Act,  Social Security’s website, and the White House press release. I don’t copy other columnists’ work; instead, I conduct my research. When I do use quotes from others, I list the source often with a link to the referenced document.

The President promised relief on Social Security taxes during his re-election campaign, and the House and Senate approved this workaround to provide relief to millions of Americans.

Even Axios, which is considered a liberal news outlet, said in a recent article, “Trump promised to eliminate taxes on Social Security income. Lawmakers couldn’t pull that off entirely, given the constraints of passing a reconciliation bill and changing Social Security law. This break comes close.”

The End Result

I want to thank all those who subscribe to my newsletter, read my blog, and visit our Federal Employees Retirement Planning site. Your input is invaluable, and I appreciate your constructive feedback; it adds clarity to often-confusing and misunderstood subjects. Please keep your input coming.

Helpful Retirement Planning Tools

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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 on Friday, 4th July 2025 by

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The reconciliation bill HR-1, passed by Congress and signed by the President on Independence Day, ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits. This bill provides meaningful and immediate relief to millions of seniors.

Social Security Commissioner Frank Bisignano recently stated, “This is a historic step forward for America’s seniors. For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”

The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can retain a greater portion of their earnings.

 

Social Security Taxation

According to a White House memo issued July 1, 2025, “88% of all seniors who receive Social Security will pay NO TAX on their Social Security benefits, according to an analysis from the Council of Economic Advisers.”

  • A senior who files as a single taxpayer and receives the current average retirement benefit (approx. $24,000) will see deductions that exceed their taxable Social Security income.
  • Married seniors who both receive the average $24,000 Social Security income — a total of $48,000 in annual income — will also see deductions that exceed their taxable Social Security income.

New Standard Senior Deductions

The new Senior Deductions, as noted in the following chart, will either eliminate or significantly reduce the taxes paid on our Social Security earnings. Married seniors will receive a $12,000 deduction, which compensates for the majority of any Social Security taxes they may be required to pay.

Before the passing of this bill, just over half of all Social Security recipients paid taxes on up to 85 percent of their Social Security benefits because their income exceeded the established threshold for taxation. This deduction significantly offsets the taxes paid for many, but not all, due to income limitations.

Deduction Examples

First, consider the case of a senior filing as a single taxpayer receiving the current average retirement benefit of approximately $24,000 (per Social Security Administration data).  The maximum amount of Social Security included in taxable income is 85% of the benefit, which would be $20,400 in this case.

Under the reconciliation bill, in 2025 this senior would be entitled to $23,750 in deductions – the $15,750 standard deduction, the $2,000 current-law additional deduction, and the $6,000 new law senior deduction – meaning that the reconciliation bill would lead to deductions that exceed the senior’s taxable Social Security income.

Second, consider a married couple of seniors both receiving the average $24,000 Social Security income.  The couple will have a total of $48,000 in annual income, of which at most 85% is taxable ($40,800).  Under the bill, this couple would be entitled to deductions that exceed their taxable Social Security income.

Six One Way, Half A Dozen the Other

This deduction is how the administration achieved its goal of exempting Social Security from taxation. Instead of changing the tax laws, they established a new senior deduction that achieved the same thing to a degree. Some will still pay taxes, but most individuals will benefit from this new standard senior deduction.

Income limits apply. Singles with income under $75,000 and couples under $150,000 qualify for the full deduction and it phases out gradually and ends completely for singles earning over $175,000 and couples over $250,000.

This tax break is available from 2025 through 2028 and may be renewed by future legislation.




Helpful Retirement Planning Tools

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Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information 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 should not be considered investment advice and 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 on Friday, 27th June 2025 by

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Last week’s article announced the launch of OPM’s retirement application (ORA) service. The process mimics the paper application process. FERS employees must fill out the SF 3107 form, and CSRS employees must fill out the SF 2801 online. Only those with a .gov email address can access the new application portal.

 

 

I tried to log in using my AOL email address, and OPM replied with this notice: “It looks like you logged in with a personal email address. If you’re an HR or Payroll specialist, log back in with your .gov email address. Otherwise, we’re working on adding support for retirees. Check back soon!”

The login screen cautions, “First time here from retire.opm.gov? Your old retire.opm.gov username and password won’t work. Create a Login.gov account with the same email used previously.”

Your online applications are submitted to your agency’s HR department for processing. I suggest downloading and printing out the appropriate form for detailed guidance, including the four pages of instructions included with each form. They will also help you gather the required information and documents when completing your online submission. This will save you time when applying online.

Here are the form links:

Streamlined Service

Starting June 3, 2025, federal employees’ retirement applications must be submitted online through OPM’s new Online Retirement Portal. This system replaces paper-based submissions. For security purposes, this service is only available through your Login.gov account.

You only have to register once for a Login.gov ID, and then you can use it for all federal sites, including OPM’s Services Online and Social Security. You also have the option to log in using your government ID.

The one caveat is that you must use your official agency email address to enter this system. Federal employees must register again using their agency’s email address if you used a non-government email address to join other sites, such as Social Security.




Applying for Retirement

The application requires detailed information about the employee’s service history, retirement system (CSRS or FERS), benefit elections, and survivor annuity elections. When you are ready to retire, you will receive an email with instructions on completing your application using ORA. You will enter your information and complete the entire process online.

FREE Retirement Report and Analysis

Here are the steps required to use this service:

  1. Create or Link to your Login.gov Account:

If you don’t have a Login.gov account, follow this guidance to create one. This is separate from the OPM Services Online account, which lets annuitants (federal retirees or their spouses, ex-spouses, and children) manage their accounts online.

  1. Access the Retirement Application:

Go to the OPM Online Retirement Application portal.

  1. Complete Forms Online:

Fill out the required forms, including the primary retirement application forms (SF 2801 for CSRS or SF 3107 for FERS) and any supplemental forms.

  1. Collect Supporting Documents:

You must provide supporting documents, such as marriage certificates, divorce decrees, or military service records, as needed.

  1. Send the Application:

Once the application is complete, submit it electronically through the portal.

  1. Agency Review and Certification:

Your employing agency will review and certify your application, including completing the SF 3107-1 (FERS) or SF 2801-1 (CSRS), and forward it to OPM. They will contact you if additional information or clarification is needed, such as military service or benefit election questions.

  1. Follow up with your HR Department

After submitting your application, you should receive a confirmation of receipt via the email address you used for the submission. Call HR to confirm receipt if you don’t receive a timely response.

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Stay Involved with the Process

Time will tell how efficient the new system is and whether or not it speeds up processing. OPM has provided training and support for agencies to utilize the new system. The key is for your HR department to have the same ability to fast-track and send your application electronically to OPM. They will need the staff to do this, just because it is online now, applications still require detailed reviews before sending them to OPM.

Issues around military service time often arise that the applicant and HR must resolve using the employee’s eOPF and other documentation. You should download your eOPF and review it for inconsistencies before submitting your application, especially when employed by different agencies, working part-time, or having military service to add to your annuity calculation.

Effective July 15, 2025, OPM will no longer accept paper retirement applications. Any paper submissions created on or after June 2, 2025, will be returned to the agency for digital resubmission.

when employees notify their HR office of their intent to retire, they will receive an email with detailed instructions for completing their application using ORA.

Helpful Retirement Planning Tools

 

Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment, and benefit information 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. 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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