Recession Watch: Trump Layoffs, Other Acts, And The Economic Forecast

Recession Watch: Trump Layoffs, Other Acts, And The Economic Forecast

President Trump has made major policy changes in the first few weeks of his second term. Amid the political upset, some people worry that the U.S. economy could go into recession as a result of tariffs, deportations and mass layoffs of federal employees. The recession scenario seems unlikely at this point, but we have great uncertainty about what exactly will happen. Follow link to read more from Forbes. https://bit.ly/4hKRwbH

Government-wide Firing of Probational Employees Causes Dismay

Government-wide Firing of Probational Employees Causes Dismay

The 2025 Executive Order concerning the firing of probationary federal employees builds upon earlier initiatives aimed at reforming the federal workforce. This order reinforces the ability of federal agencies to rapidly terminate employees who are still in their probationary period, further streamlining the dismissal process.

The intent behind this executive order is to enhance accountability and efficiency within federal agencies. By allowing quicker terminations of underperforming employees during their probation, the order seeks to promote a higher standard of performance and reduce bureaucratic inertia.

Supporters of such measures argue that they create a more effective government by ensuring that only capable individuals remain in federal positions. However, critics often worry that these actions could undermine job security and lead to an environment where employees may be hesitant to report misconduct or express differing opinions, fearing retaliation.

Source: CBS News https://bit.ly/3Qryon8

Big Changes Coming to the Thrift Savings Plan in 2026

Big Changes Coming to the Thrift Savings Plan in 2026

Roth TSP conversions will arrive in 2026. Who stands to benefit the most?

In November, TSP officials announced a major update that will impact all 4.1 million account holders starting in 2026: the introduction of in-plan Roth TSP conversions. But what does this mean for you and other participants? Let’s break it down.

What Is a Roth TSP Conversion?

A Roth TSP conversion allows TSP participants to move funds from their Traditional TSP to their Roth TSP—also known as an in-plan conversion. Click link to read more from FedSmith. https://www.fedsmith.com/2025/02/13/big-changes-coming-to-tsp-in-2026/

 

Retirement: How to Navigate the Current Instability

Retirement: How to Navigate the Current Instability

Amid “deferred resignation” turmoil, federal workers are in uncharted territory. Here’s a little guidance.

Federal employees have had to get familiar with the Voluntary Early Retirement Authority, which was clarified in the FAQs of the “Fork in the Road” memo from the Office of Personnel Management to mean that employees who are eligible for the deferred resignation offer and are at least age 50 with at least 20 years creditable federal service, or any age with at least 25 years creditable federal service are eligible for VERA (Voluntary Early Retirement Authority) along with the deferred resignation offer (unless your position is exempted from the program by your agency).  Follow link to read more. https://www.govexec.com/pay-benefits/2025/02/retirement-how-navigate-chaos-ahead/402996/?oref=ge-mini-feed

OPM Sets Priorities for 2026 in FEHB, PSHB

OPM Sets Priorities for 2026 in FEHB, PSHB

The letter, which begins the process of negotiating coverage and premiums, was issued in the last days of the Biden administration and could be changed under Trump.

In its annual “call letter” to carriers in the FEHB and PSHB programs outlining requirements for the 2026 plan year, OPM has stressed easing administrative burdens on enrollees and continuing initiatives of recent years in areas including fertility, mental health and obesity treatment coverage. Follow link to read more from FEDweek. https://www.fedweek.com/retirement-financial-planning/opm-sets-priorities-for-2026-in-fehb-pshb/