Posted on Friday, 21st March 2025 by Dennis Damp

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Most retirees and federal employees approaching retirement are concerned about rising cable and Internet costs, largely due to the cable companies’ decades-long monopoly. My monthly cable bill is currently $347.76, which is my largest utility bill.

I wrote an article last year about cutting the cord, which focused on ways to reduce excessive cable bills, and I experimented unsuccessfully with several streaming options. My son, Dennis Jr., took the lead and just cut his bill in half. Here is his story that I edited and added a closing.

The Saga Begins

I received my cable and internet bill in January 2025 and was shocked by the increase in cost. I’m sure some of you reading this article have felt the same way. In 2024, I was paying $195 per month through Xfinity (Comcast), and my January bill increased to $212.

For reference, I live in Pittsburgh, PA.  While this may not seem like a significant increase year over year, I had negotiated my price down to approximately $ 150 five to six years earlier. Every year, I seemed to receive a price increase, yet my service remained unchanged.

My Subscription

I had considered cutting the cord for many years and finally decided to make the change. My cable services are listed below and aren’t worth the year-over-year cost increases.

• Cable TV, including most sports channels like the NFL Network and local sports networks, as well as AMC, TBS, and TNT.
• 500 Mbps Internet service
• One cable box which included DVR service
  • I didn’t have pay channels or Apps like HBO or Netflix
  • No paid sports packages, such as Red Zone, were included in my cable package, except for ESPN and NFL.

I had one cable box with internet and no pay channels. I kept cable for years since my kids liked Disney Jr., and I watched local sports. Recently, I noticed that my kids were spending more time watching YouTube Kids on their iPads than they were watching Disney Jr. I decided it was time to try a new lower-cost streaming service by cutting the cord.

First Things First

Before you cut the cord, contact your local cable service to see if they can offer you a reduced rate. I did call Comcast, and they were willing to make changes, but the savings weren’t quite what I was looking for. They excluded some of the channels that I wanted to keep. With prices skyrocketing everywhere, any savings you can achieve is worth pursuing.

Verizon was offering two packages: 300 Mbps internet for approximately $36 per month or 1 GB for around $66 per month. All taxes and fees were included in the price, along with free installation. Additionally, a 5-year price lock was offered if you ordered by a specific date.

My kids and I have numerous internet-connected devices in the house, including computers, game consoles (such as the Nintendo Switch and PlayStation), phones, and televisions. You would be surprised at how many electronic devices in your home utilize the internet, including smart devices such as thermostats, cameras, video doorbells, and even appliances in some instances.

I opted for the faster internet speed, especially for online gaming, such as Fortnite and Call of Duty. The cost was reasonable, with a 5-year price lock, and included a router and one extender. They also included a free year of Netflix and Max (with ads). After the first year, the cost would be only $10 per month for both. This seemed like a great deal over time.

Live TV

My next step was researching how to get live TV, including local news, sports, and kids’ channels. Although there are several others available, I focused on FUBO and Google TV. The two options were relatively similar, featuring local news and children’s channels.

I watch local Pittsburgh sports, so I wanted an option that potentially included Sports Net Pittsburgh.  While Google TV offered a wide range of sports options, they didn’t include local sports.

FUBO offered a local sports option as part of their pro package.  Both option’s pricing ranged from around $85 to $90 at the time of writing.  You need to visit their websites and verify that the channels you require are available on the specific services.

Saving Even More!

Could I survive without a live TV service?  I purchased an affordable digital antenna on Amazon that offers 1080p picture quality or higher, boasting 5-star reviews, and you’ll find several options to choose from.  I chose one that is flat and fits behind my smart TV.

Essentially, my primary local channels include CBS, ABC, FOX, and NBC, as well as many others, such as LAFF TV and QVC, which are also available using the digital antenna hooked up to the TV’s coaxial cable port.  I receive approximately 50 channels, and the main local broadcasts are actually in HD quality!

You may need to position the antenna closer to the window for certain channels.  For example, ABC only came in on my TV if I placed the antenna near a window.  I decided to keep my antenna behind the TV for now, as it looks better that way. However, if I ever watch ABC, I can place it near the window.

It took me a while to set up the over-the-air channels on my smart TV. Check your TV’s broadcast settings. Typically, newer smart TVs feature a search function that allows users to find channels.  This process can take several minutes to complete.  Overall, it’s relatively easy to set up, and I find myself and the kids watching LAFF TV a lot, as it includes several very funny sitcoms from the past.

Additional Agency Reductions Planned & More Executive Orders Repealed

The End Game

Ultimately, I decided to go with Verizon Internet, including Netflix and MAX. I’m getting my local channels through the digital antenna, which works great.  As I mentioned earlier, I wanted a local sports channel, so I opted for a monthly subscription to SportsNet Pittsburgh, which, at the time of writing, costs approximately $18 per month. I can now watch the Pittsburgh Penguins and the Pittsburgh Pirates baseball games. The Steelers games are sold out, so all of their games are broadcast live on the local channels.

My total bill is currently under $100 per month, but I still have some nice options.  I’ve decided to forgo both FUBO and Google TV.  If I were to opt for those options, plus my Verizon internet, I’d be spending around $150 or more per month.  It would still be a savings over cable, and I would get more popular channels, plus other sports networks like ESPN and the NFL Network.

I’m about a month in, and honestly, I don’t miss much in the way of network programming. This ultimately comes down to a matter of personal preference, and everyone must conduct their own research to determine what works best for their family.

While I may switch to another live internet TV service in the future, I don’t see myself going back to cable.  Cutting the cord is saving me just over $112 a month, or $ 1,344 a year. It can be worthwhile in the long run, but you’ll need to learn new apps and adapt to new programming methods using your TV remote.  Best of luck in your research and cutting the cable cord!

Conclusion

You can save a substantial amount by converting to streaming, but, as my son suggests, it takes time, research, and a learning curve before it becomes second nature.  Frustration can prevail for some time because you don’t have the cable company to call to get you up and running and back on track.

Cable companies offer standardization between different TVs and include apps in their setup, all of which can be controlled with a single cable remote. These costs are becoming increasingly disproportionate to what they offer. For example, we have hundreds of channels that we never watch, and they won’t let you select only the channels you want to watch.

You would think a cottage industry would be flourishing across the country, offering streaming conversions like this since it can save substantial costs, especially for retirees living on a fixed income.  These streaming conversion companies could operate on a commission basis, asking clients to pay a percentage of their first year’s savings with no upfront fees after everything is up and running.

This is a great startup company idea for some of the younger folks reading my column. If someone came to me and said they would save me around $2,000 a year, I wouldn’t mind paying them a one-time fee with some phone support included to move from cable to a lower-cost streaming service.

I may still follow my son’s lead, especially since I can call on him, not if but when I run into technical problems.

Helpful Retirement Planning Tools

Federal employees and recent retirees with security clearances can
search thousands of high-paying defense and government contractor jobs.

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

 

Tags: cable services, Cutting the Cord, Internet Services, Reducing Costs
Posted in FINANCE / TIP, LIFESTYLE / TRAVEL, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Thursday, 13th March 2025 by Dennis Damp

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In 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 the last meeting, the Fed indicated that economic activity continues to expand, the unemployment rate has stabilized at a low level in recent months, labor market conditions remain solid, and inflation remains somewhat elevated.

In February, the inflation rate decreased for the first time in three months, and the unemployment rate held steady at 4.1 %, a slight decrease from January’s 4.0 %. The next Federal Reserve interest rate meeting and decision is due on March 19th, 2025.

While the stock market offers the potential for higher gains, it doesn’t come without risks for those approaching retirement and retirees, as evident from the volatility this past several weeks.

Treasury Bill Rates Still Attractive

According to the FDIC, the national average savings account yield has dropped to 0.41 percent APY, while the average checking account rate is a meager .08 %, and money market rates average .68 percent.

Higher rates are available from some banks, including those available online. The average money market yield would earn you a measly $68 per $10,000 savings for the entire year!

Treasury Bills are still earning around 4.3%. You can select “auto reinvestments” for up to two years. Auto renewals can be stopped prior to the next reinvestment date if the funds are needed. The rates change for each new issue. The shorter-term (4, 8, and 13-week) Treasury Bill yields have averaged 4.3 to 4.5 percent over the past year and the 10-year Notes recently yielded 4.625 %.

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.

 

Treasury Bill 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:

• Treasury Bills In-depth
• Treasury Notes In-depth
• Treasury rates (Yields)
• Auction schedule

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.

 Agency RIFs and Reorganization Plans (ARRPs)

CDs and Savings Bonds

Many online banks, credit unions, and some regional banks are offering competitive rates for savings accounts and CDs, from 3.5 percent to higher in many cases. Rates are not falling as fast as the Fed anticipated, and I’m still rotating savings through short-term T Bills at attractive rates. Longer term CDs or 2, 3, 5, 7, or 10-year Treasury Notes can lock in higher rates. CDs have no market risk if you stay under their insured FDIC limits.

Treasury Notes currently offer anywhere from 3.875 to 4.625 percent. These notes also have the potential for capital gains if interest rates continue to decline and you decide to sell them on the secondary market before maturity.

Treasury Note Interest Rates

I-Savings Bond Rates 

I Bonds issued November 1, 2024, to April 30, 2024, earn 3.11%. This includes a 1.2% 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 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 a 3% fixed rate and are currently earning 5.33%. 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. On the flip side, when the inflation rate goes negative, like it did in the late 1990s, I-bonds don’t decrease in value.

Dissecting DOGE – Purpose and Process explained

Market Observations

Considering the uncertainty around tariffs and other factors, the stock market has been on a roller coaster ride this past month. Brokerage accounts invested in equities have suffered the most while we wait for stability to return.

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.

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 Treasury Notes are viable options if you can lock up your discretionary savings and investments for 12 months or longer. As noted on the above charts, Treasury Bill rates are moderating down a bit.

Short-term T-Bills 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

Federal employees and recent retirees with security clearances can
search thousands of high-paying defense and government contractor jobs.

• Financial Planning Guide for Federal Employees and Annuitants
• TSP Guide
• Budget Work Sheet
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Deciding When To Retire – A 7-Step Guide
• 2025 Federal Employee’s Leave Chart
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

 

Posted in UNCATEGORIZED

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Posted on Friday, 7th March 2025 by Dennis Damp

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In last week’s article, I said, “DOGE is moving too far and fast, as evidenced by the chaos surrounding it,” and further stated, “They should allow each agency head to work within their organizations to streamline if needed.”

Someone in the administration read my last article! Actually, the President’s cabinet and many others were complaining about the problems encountered with the fast pace of the cuts.

At his second cabinet meeting last week, the President announced that Cabinet secretaries, not Musk, had the final say on staffing and policy at their agencies.

There is still some confusion about whether employees must report their accomplishments weekly. Many agency heads have advised their employees not to reply; others still require a weekly report.

_____________________________________________

__________________________________________

The Path Forward

President Trump and DOGE aren’t taking their foot off the gas; the President is reverting to cruise control to moderate the pace. On Truth Social, the President stated, “It’s very important that we cut levels down to where they should be, but it’s also important to keep the best and most productive people.” His cabinet will meet every two weeks to manage this transformation.

The cabinet heads are now fully engaged in streamlining their organizations and determining what needs to be done to reduce fraud, waste, and abuse.

The Secretaries will work with agencies and intend to be precise about who remains and who will go. The President indicated, “We say the ‘scalpel’ rather than ‘hatchet.’ The combination of them, Elon, DOGE, and other great people will be able to do things at a historic level.”

The Next 7 Months

OPM published comprehensive guidance on February 26, 2025, directing agencies to develop comprehensive Agency RIFs and Reorganization Plans (ARRPs). All agencies must develop phase 1 plans by March 13, 2025. These plans are intended to improve services, increase productivity, and reduce unnecessary positions, real property, and expenditures wherever possible.

Phase 2 plans must be submitted for review and approval by April 14, 2025, and implemented by September 30, 2025. These plans cover 17 major areas, including consolidations, preparation for RIFs, establishment of new organizational charts, technology improvements, and much more.

Conclusion

A lot will happen over the next few months in the federal sector. Changes are coming at lightning speed compared to how they took place in the past. This President is committed to rightsizing the federal sector, organizing operations to provide their intended services efficiently, reduce office space wherever possible, and eliminating wasteful spending.

Full implementation of the ARRPs is expected to begin this September, sooner once the new budget is approved and funds are available. However, many initiatives will take much longer to accomplish when you factor in employee relocations, downsizing leased space, establishing centralized offices, hiring the right mix of talent for locations, and auctioning off excess property.

Anyone anticipating being impacted from potential RIFs can explore their options to prepare for what may come their way. You should also work closely with your HR office to determine what is available based on your personal situation.

Additional information – DOGE and federal downsizing:

• Federal Agencies Prepare for Reorganizations with Planned RIFs
• Dissecting DOGE – Purpose and Process explained
• New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs
• The Future of Federal Telework: New Rules, Union Pushback, and What Comes Next in the Return to In-person Work Shift
• The Department of Government Efficiency (DOGE): Disruption Creates Opportunities
• OPM Orders Return to in-person work – Accepting Deferred Resignations

Helpful Retirement Planning Tools

Federal employees and recent retirees with security clearances can
search thousands of high-paying defense and government contractor jobs.

• Retirement Planning Guide for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Complimentary Retirement Planning Session
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Hiring a Financial Planner
• TSP Guide
• Budget Work Sheet
• 2025 Federal Employees Leave Record
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: ARRPs, Cabinet Members, DOGE, Downsizing, Elon Musk
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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Posted on Saturday, 1st March 2025 by Dennis Damp

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Two million federal employees received another email from OPM Friday evening requesting they reply with a list of last week’s accomplishments. The email states, “Going forward, please complete the above task each week by Mondays at 11:59 p.m. ET.”

After reviewing the first memo, many agencies advised their staff not to reply; they handle these requests in their own way. This includes the FBI, the Justice Department, the State Department, the Pentagon, the Department of Energy, the Department of Homeland Security, and the Office of the Director of National Intelligence.

Other departments advised employees to reply to the memo, continuing the flurry of activity across the federal sector. Most don’t know what to expect over the coming months.

The New Memo

This memo was sent out on Friday evening:

“From: HR <hr@opm.gov>

Sent: Friday, February 28, 2025 8:45 PM

Subject: [EXTERNAL] What did you do last week? Part II

Importance: High

Please reply to this email with approx. 5 bullets describing what you accomplished last week and cc your manager.

Going forward, please complete the above task each week by Mondays at 11:59 pm ET.

Please do not send links, attachments, or any classified/sensitive information. If all of your activities are classified or sensitive, please write ‘All of my activities are sensitive’.”

The White House said that approximately a million of the federal government’s over 2.3 million employees replied to the first email asking for five bullet points highlighting last week’s accomplishments.

Summary

DOGE is moving too far and fast, as evident by the chaos surrounding it. They are insensitive to the federal employees losing their jobs and discount the many federal workers who do outstanding jobs every day. Federal services touch all of our lives in one way or another.

I don’t see how this is helping matters. They should allow each Agency Head to work within their organizations to streamline if needed. They made their point on their first accomplishment request, which should have been enough.

Several employees I talked to already submitted the bullets for last week and didn’t stop at 5; many listed more, emphasizing the many things they are tasked to do weekly. Federal employees are often expected to multitask, participate in work groups, attend meetings, and take on collateral duties. I would send a laundry list of accomplishments and include the things your supervisor may not be unaware of.

Keep a hard copy of every email you send, highlight major accomplishments on each copy, and take the emails with you to your annual performance review. This could support an outstanding rating or a Quality Within Grade (QWI).

All reorganizations are disruptive, former President Clinton did it in the late 1990s using the Voluntary Early Retirement Authority (VERA), with an accompanying $25,000 Voluntary Separation Incentive Payment (VSIP). RIFS are typically used as a last resort.

The administration must lower the temperature and realize that its actions disrupt many lives. Federal employees aren’t the root of the problem; it’s out-of-control spending and the lack of oversight by Congress.

Additional information – DOGE and federal downsizing:

• Dissecting DOGE – Purpose and Process explained
• New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs
• The Future of Federal Telework: New Rules, Union Pushback, and What Comes Next in the Return to In-person Work Shift
• The Department of Government Efficiency (DOGE): Disruption Creates Opportunities
• OPM Orders Return to in-person work – Accepting Deferred Resignations

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

• Retirement Planning Guide for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Complimentary Retirement Planning Session
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Hiring a Financial Planner
• TSP Guide
• Budget Work Sheet
• 2025 Federal Employees Leave Record
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: DOGE, Elon Musk, OPM Memo, President CLinton, President Trump, Reporting Accomplishments, RIF, VERA, VSIP
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Friday, 28th February 2025 by Dennis Damp

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The Department of Government Efficiency (DOGE) was established by Executive Order (EO) 14158 on January 20, 2025. The EO aims to “establish the Department of Government Efficiency to implement the President’s DOGE Agenda by modernizing Federal technology and software to maximize governmental efficiency and productivity.”

DOGE is a temporary organization headed by the United States DOGE Service (USDS) Administrator and dedicated to advancing the President’s DOGE agenda. The U.S. DOGE Service Organization terminates on July 4, 2026.

DOGE Teams

In consultation with USDS, each Agency Head has established within their Agency a DOGE Team of at least four employees, which may include Special Government Employees, hired or assigned within thirty days of the date of January 20, 2025.

Each DOGE Team typically includes one DOGE Team Lead, one engineer, one human resource specialist, and one attorney. Agency Heads must ensure that DOGE Team Leads coordinate their work with USDS and advise their respective Agency Heads on implementing President Trump’s DOGE Agenda.

Primary Focus

DOGE’s Software Modernization Initiative is intended to improve the quality and efficiency of government-wide software, network infrastructure, and information technology (IT) systems. The DOGE teams, in concert with the Administrator, will work with Agency Heads to promote interoperability between agency networks and systems, ensure data integrity, and facilitate responsible data collection and synchronization.

The teams evaluate agency software and data systems for potential problems and disconnects. They don’t have access to make changes.

During a recent TV interview, Elon Musk stated that one of his primary objectives is to ensure the implementation of the President’s Executive Orders.

Major government-wide software and network infrastructure changes won’t happen overnight; years of planning, congressionally approved funds, and competitive contracts are required. You don’t turn a cruise ship on a dime. The initiative is to get the ball rolling over this 18-month period, and our politicians must keep it on track.

The implementation phase addresses fraud, waste, and abuse.

Implementation

A second Executive Order dated February 11, 2025, covers the implementation of The President’s “Department of Government Efficiency” Workforce Optimization Initiative. Its purpose is to “restore accountability to the American public; this order commences a critical transformation of the Federal bureaucracy by eliminating waste, bloat, and insularity.”

No agency appears to be excluded from DOGE’s reach, from USAID to the Department of Defense, Treasury, VA, DOT, and others. The President’s new cabinet will initiate deeper dives into each agency as they sift through the recommendations presented by these teams.

They seek ways to cut spending, reduce regulations, right-size the workforce, and modernize federal technology and software to maximize governmental efficiency and productivity. It is a tall task for any organization.

Federal employees and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

Historical Perspective

During my 35 years of federal service, I went through numerous reorganizations. President Clinton’s administration eliminated hundreds of thousands of positions through the Voluntary Early Retirement Authority (VERA), often with an accompanying $25,000 Voluntary Separation Incentive Payment (VSIP) and Reduction in Force (RIF) proceedings.

President Clinton’s National Performance Review leader, Elaine Karmarck, testified in early 2000 before the House Committee on Oversight and Government Reform that 426,200 federal jobs were cut during President Clinton’s tenure.

The Office of Personnel Management (OPM) reported total federal civilian employment at the beginning of President Clinton’s term as 2,225,000. By the end of his term in 2000, it had decreased to 1,778,000, a 20% drop.

Current Administration Cuts

At the beginning of President Trump’s second term, federal civilian employment exceeded 2,300,000. This is May 2024 data released by OPM; additional hiring took place in the last half of 2024, and this data isn’t currently available.

The Trump administration’s first step in reducing the workforce was to offer deferred resignations to those who did not wish to return to the workplace. Approximately 75,000 accepted this offer, which provided a generous severance package of up to 9 months of full pay with benefits without a requirement to return to work. This was challenged in court. However, Judge George O’Toole lifted the restraining order on February 12.

The Future of Federal Telework: New Rules, and What Comes Next in the Return to In-person Work

Many probationary workers with less than one year of service were laid off shortly thereafter. According to OPM’s FedScope, about 218,000 federal workers have less than a year on the job, representing about 9% of the government workforce. Not all probationary employees will be automatically fired; those in critical or essential positions may be retained.

Their next logical step is to offer VERA and VSIP packages for positions that are being eliminated. Funds must be approved for this to proceed. RIFs could also be used; they require the government to provide a 60-day advance notice of a layoff.

I believe the administration is targeting at least a 20 percent drop in the onboard full-time equivalent positions, similar to what former President Clinton accomplished during his administration. The difference is that Clinton had 8 years to achieve this, and President Trump has just under 4 years to accomplish the same thing.

The Employee’s Plight

For many federal employees, their anxiety is overwhelming, to say the least. Federal jobs are believed to be among the most secure, and for the most part, they are.

I know how they feel. Many military installations were shuttered or downsized shortly after the Vietnam War ended. I had recently relocated to a federal civil service position at an Air National Guard base in Pittsburgh.

All civilian employees received a notice of a pending RIF shortly after I reported to work; one of the units was being decommissioned. I didn’t look forward to going home to my wife that day and telling her I may lose my job. Our son was only one year old, and we had just relocated from Topeka, Kansas, a thousand miles away after the Forbes AFB closed!

New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs

Summary

Elon Musk is in the daily news cycle for his engineering feats and, most recently, for his USDS Administrator duties. His team has purportedly found numerous issues that question how well the government manages our money. They aren’t the only ones.

The U.S. Government Accounting Office (GAO) reported on January 23, 2025, “Since FY 2003, federal agencies have made $2.8 trillion in improper payments—i.e., payments that shouldn’t have been made or were made in incorrect amounts.” When an Inspector General (IG) finds an agency non-compliant, the agency must report its compliance plans to Congress.

The report suggests that reducing fraud and improper payments is critical to safeguarding federal funds. It estimates that between $233 billion and $521 billion is lost to fraud annually within the federal government! This is the government’s GAO report, not DOGE!

We frequently hear that Elon has entered the building and discovered whatever there is to expose. He may have entered, but his teams are the ones finding inconsistencies. They comprise federal workers, including experts Elon Musk knows and trusts.

The DOGE teams post their findings online at www.DOGE.gov as they discover issues that often require further investigation and highlight their progress. For example, they found over 500 million going overseas for various projects that have since been canceled.

There will be many hiccups along the way as they backtrack on certain issues due to moving too far too fast. For instance, they rehired many probationary employees who shouldn’t have been let go.

Time will tell whether this effort bears fruit. They are even talking about a DOGE dividend, possibly a 20 percent rebate to taxpayers of the total saved! I would prefer they apply all the funds to reduce our debt and lower our taxes.

Helpful Retirement Planning Tools

• Financial Planning Guide for Federal Employees and Annuitants
• Complimentary Retirement Planning Session
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Hiring a Financial Planner
• TSP Guide
• Budget Work Sheet
• 2025 Pay Tables
• 2025 Federal Employees Leave Record
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: DOGE, DOGE Focus, DOGE Historical Perspective, DOGE Implementation, DOGE Teams, Federal Layoffs, RIFs, VERA, VSIP
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS

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Posted on Wednesday, 26th February 2025 by Dennis Damp

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The Social Security Fairness Act repealed the windfall elimination provision and the government pension offset last November, and impacted CSRS retirees are waiting for their Social Security checks to increase.

You are eligible for Social Security benefits if you accrued 40 quarters (10 years) of employment where Social Security payments were withheld. The Windfall Elimination Provision reduced the CSRS Social Security benefits if you had less than 30 years of “substantial” coverage and are collecting a CSRS federal retirement benefit.

 

Payments to Start

The Social Security Administration (SSA) will Start paying retroactive benefits the week of February 24, 2025. This will increase monthly benefit payments to people whose benefits have been affected by the WEP and GPO.

When a beneficiary is due retroactive benefits, they will receive a one-time retroactive payment, deposited into the bank account SSA has on file, by the end of March. This retroactive payment will cover the increase in their benefit amount back to January 2024, when WEP and GPO no longer apply.

Social Security benefits are paid one month behind. Most affected beneficiaries will begin receiving their new monthly benefit amount in April 2025 (for their March 2025 benefit).

What to Expect

Anyone whose monthly benefit is adjusted or who will get a retroactive payment will receive a mailed notice from Social Security explaining the benefit change or retroactive payment.

Beneficiaries may receive two mailed notices: the first when WEP or GPO is removed from their record and the second when their monthly benefit amount is adjusted for their new monthly payment amount. You may receive a retroactive payment before receiving the notice.

In certain complex cases that can’t be processed automatically, SSA must spend additional time manually updating the records and paying both retroactive benefits and the new benefit amount.

Social Security advised those eligible for a refund and increased benefits to wait until April to inquire about the status of their retroactive payment since these payments will be processed incrementally throughout March.

Refunds will vary depending on factors such as the type of Social Security benefit received and the amount of the person’s pension. According to Social Security, “Some people’s benefits will increase very little while others may be eligible for over $1,000 more each month.”

Summary

WEP did not significantly reduce my Social Security benefits because I had 27 years of substantial earnings, primarily through my business. I should receive a letter soon outlining what to expect. The Act applies to benefits you get on your own record (retirement or disability benefits) and to your spouse’s or surviving spouse’s benefits on another person’s record.

SSA published a comprehensive update that addresses most situations; visit their update page for complete information.

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

• Retirement Planning Guide for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Complimentary Retirement Planning Session
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Hiring a Financial Planner
• TSP Guide
• Budget Work Sheet
• 2025 Federal Employees Leave Record
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any 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, SURVIVOR INFORMATION

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Posted on Sunday, 23rd February 2025 by Dennis Damp

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All federal employees received an email from OPM on Saturday requesting they reply with a list of last week’s accomplishments. Elon Musk first mentioned this on X, and OPM sent the email shortly thereafter. The deadline to reply is 11:59 p.m. Monday, February 23!

This has created anxiety and a flurry of activity across the entire federal sector, and everyone is on edge. Read the full story about this issue and what to expect over the next few days!

Additional information – DOGE and federal downsizing:

• New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs
• The Future of Federal Telework: New Rules, Union Pushback, and What Comes Next in the Return to In-person Work Shift
• The Department of Government Efficiency (DOGE): Disruption Creates Opportunities
• OPM Orders Return to in-person work – Accepting Deferred Resignations

Sign up for a complimentary retirement planning session
and a FREE retirement planning report

Helpful Retirement Planning Tools

• Retirement Planning for Federal Employees & Annuitants
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Budget Work Sheet
• The Ultimate Retirement Planning Guide – Start Now
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: DOGE. OPM Email, Elon Musk, Feds Reporting Accomplishments
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, EMPLOYMENT OPTIONS, ESTATE PLANNING, RETIREMENT CONCERNS, SURVIVOR INFORMATION

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Posted on Thursday, 13th February 2025 by Dennis Damp

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Approximately 50% of retirees pay taxes on their Social Security benefits, compared to less than 10% in 1984!

Thomas Massie (R-KY) reintroduced H.R. 1040, the Senior Citizens Tax Elimination Act. It was referred 02/06/2025 to the House Committee on Ways and Means. This bill assists seniors by eliminating the double tax on Social Security benefits. This bill supports President Trump’s campaign to eliminate this unfair tax for seniors.

Representative Daniel Webster (R-FL) co-sponsored this legislation, stating, “For decades, seniors have paid into Social Security with their tax dollars. Now, when many seniors are on a fixed income and struggling financially, they are being double-taxed because of income taxes on their Social Security benefits.

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As the Congressional Research Service reports, “Before 1984, Social Security benefits were exempt from federal income tax. Congress then enacted legislation to tax a portion of those benefits, with the share gradually increasing as a person’s income rose above a specified income threshold.”

Today, up to 85 percent of a senior’s Social Security benefits are taxable under this draconian law. They should expand this proposal to eliminate the Income Required Monthly Adjustment Amounts (IRMAA) that apply to Medicare Part B and D payments. Why should many seniors pay up to four times more for the same benefit?

If passed, this act would amend the Internal Revenue Code of 1986 to terminate the inclusion of tier I railroad retirement benefits and Social Security benefits in an individual’s gross income starting in 2025 (tax returns filed in early 2026).

New Executive Order Pushes for Federal Workforce Reduction: What It Means for Government Jobs

Alternative Proposal

The Reducing Excessive Taxation and Inefficiencies by Reforming Elder Exemptions to Support Fairness, Inflation Relief, and Simple Taxes (RETIREES FIRST) Act was introduced by U.S. Senators Roger Marshall and Marsha Blackburn, proposes significant changes to Social Security taxation, promising financial relief for millions of retirees. This proposal dramatically raises the income thresholds as noted below:

• Raising the provisional income threshold to $34,000 for single filers and $68,000 for married filers. (the provisional income threshold for single fliers is presently $25,000 and $32,000 for married filers)
• Updating the thresholds annually to prevent bracket creep and protect retirees from inflation’s impact.
• Simplifying tax rules to maintain a single 85 percent inclusion rate for benefits exceeding the new thresholds, simplifying the filing process, and reducing confusion for seniors.

Summary

These bills are long overdue. They will hopefully be reconciled and make it to the floor for a vote. Both bills require revenue neutrality; other government-wide cuts would make up the difference. With DOGE finding excessive spending, waste, and abuse in other government agencies, there should be more than sufficient funds to compensate for any lost funds.

One reason the WEP and GPO programs were repealed is the tens of thousands of phone calls that constituents made to their representatives. This week, I intend to call mine to express my support for these bills.

The Future of Federal Telework: New Rules, and What Comes Next in the Return to In-person Work

Helpful Retirement Planning Tools

Federal employees who are retiring soon and recent retirees with security clearances
can search thousands of high-paying defense and government contractor jobs.

• Financial Planning Guide for Federal Employees and Annuitants
• Complimentary Retirement Planning Session
• Deciding When To Retire – A 7-Step Guide
• How to Avoid Retirement Processing Delays (UPDATE)
• Hiring a Financial Planner
• TSP Guide
• Budget Work Sheet
• 2025 Pay Tables
• 2025 Federal Employees Leave Record
• Retirement Planning for Federal Employees & Annuitants
• The Ultimate Retirement Planning Guide – Start Now
• Medicare Guide
• Social Security Guide

Disclaimer: The information provided may not cover all aspect 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 with a financial, medical or human resource professional where appropriate. Neither the publisher or author shall be liable for any loss or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Tags: Social Security, Social Security Tax Elimination, Social Security Taxes on Income, Taxes, Taxes on Social Security
Posted in ANNUITIES / ELIGIBILITY, BENEFITS / INSURANCE, ESTATE PLANNING, FINANCE / TIP, RETIREMENT CONCERNS, SOCIAL SECURITY / MEDICARE, SURVIVOR INFORMATION

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