Surviving Policy Changes: Must-Dos for Federal Employees

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Surviving Policy Changes: Must-Dos for Federal Employees

Well. It’s been quite a couple of weeks for Feds, hasn’t it?

From the issuance of numerous executive orders calling for a return to in-person work, a hiring freeze, and enhanced accountability across all levels of the federal government to a flurry of emails offering an unprecedented “deferred resignation” deal to representatives from DOGE physically removing sensitive information from government offices and locking out information systems while purportedly under the guidance of a non-elected official, things have been… challenging for Feds lately.

Suffice it to say, recent events have caused uncertainty among many federal employees, leaving many to question the security of their careers and their own financial future. So, what can we do? Click link to read more from Serving Those Who Serve. https://stwserve.com/surviving-policy-changes-must-dos-for-federal-employees/

 

Employee Groups, Democrats, Experts Warn Feds Not to Accept ‘Deferred Resignation’ Offer 

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Employee Groups, Democrats, Experts Warn Feds Not to Accept ‘Deferred Resignation’ Offer 

The lack of a legal underpinning for the purported eight-month severance package, and Elon Musk’s history of offering—and then revoking—severance  payments1 have many federal workers wary of the measure.

Following the haphazard rollout Tuesday of a plan the White House claimed offered “buyouts” to nearly the entire federal workforce but ultimately looked more like extended paid leave prior to leaving government, federal employee groups, Democratic lawmakers and good government experts are warning federal workers not to respond to the Trump administration’s “deferred resignation” email.

According to the terms of the offer, if a federal employee decides to resign by Feb. 6, they can retain their current pay and benefits until Sept. 30. Although federal regulations cap buyouts through the Voluntary Separation Incentive Payment program at $25,000, the administration appears to be circumventing this by instructing agencies to place resigning employees on paid administrative leave for the remainder of the fiscal year. Follow link to read more from Government Executive. https://bit.ly/3WC6A2Q

 

  1. https://bit.ly/4aH1cRJ

As Trump Seeks To Reshape The Federal Workforce, Unions Blast His Schedule F Plan

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As Trump Seeks To Reshape The Federal Workforce, Unions Blast His Schedule F Plan

From meat inspectors to border patrol officers, many Americans who work for the federal government could soon see their jobs reclassified into at-will positions, meaning they can be dismissed for nearly any reason.

In a related development, the White House expects up to 10% of federal employees to quit in September in a program meant to end work-from-home practices, senior administration officials told CBS News. Follow link to read more from CBS News. https://www.cbsnews.com/news/donald-trump-executive-order-schedule-f-unions/

2025 Tax Season is Here: TSP, IRA Considerations for Contributions and RMDs

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2025 Tax Season is Here: TSP, IRA Considerations for Contributions and RMDs

You can fund a spouse’s IRA even if he or she had no earned income in the prior year, and take the deduction this year; less tax and more savings.  

One of the rules around Individual Retirement Arrangements (IRAs) is that one must have earned income to contribute to an IRA and that the contribution cannot exceed the amount of income one has earned, even if that level of income is below the annual contribution. For example, If I had $5,000 of earned income in 2024, I can’t contribute more than that amount to an IRA, even though the 2024 contribution limit is $7,000 (plus another $1,000 if over 50).

Some readers may have noticed that I used the present tense “is” when referring to last year’s limit. Why didn’t I say “was”? Follow link to read more from FEDweek. https://www.fedweek.com/tsp/2025-tax-season-is-here-tsp-ira-considerations-for-contributions-and-rmds/

 

TSP: Changes in 401(k) Plans Take Effect This Year

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TSP: Changes in 401(k) Plans Take Effect This Year

The changes in 401(k) plans that take effect this year can have implications for the Thrift Savings Plan (TSP) as well, since both are retirement savings vehicles. Here are a few potential impacts:

  • Contribution Limits: If the contribution limits for 401(k) plans increase, a similar adjustment may apply to the TSP, allowing participants to save more toward retirement.
  • Salary Deferral Changes: Enhancements to salary deferral options in 401(k) plans may encourage similar updates in TSP policies, potentially giving government employees more flexibility in how they contribute.
  • Employer Matching: Changes in employer matching contributions could prompt discussions about adjustments in TSP matching policies, impacting how much employees can receive from the government based on their contributions.
  • Withdrawal Rules: Any new rules related to withdrawals from 401(k) plans might influence decisions regarding withdrawal options available in the TSP.
  • Roth Option: If there are expansions in Roth 401(k) options, the TSP might consider similar offerings, allowing participants to make after-tax contributions.

It’s important for TSP participants to keep an eye on these changes and understand how they might affect their retirement planning. For specific details, checking the official TSP website or consulting a financial advisor can provide more tailored guidance.