This year’s pending rules, executive orders (EOs), and proposals have certainly upset the applecart across the federal sector, including for annuitants. Recently, a new rule was posted on the Federal Register for comment expanding OPM’s existing authority to take suitability actions against employees for conduct falling under specific criteria typically reserved for new hires.
This aligns with the proposed rule eliminating merit-based civil service protections for certain federal employees.
The Sum of it All
The list of changes, agency closings, and reorganizations is extensive, and many disruptions won’t take effect until later this year after the 2025 reconciliation bill is passed. That is when RIF notices will be sent to impacted agency personnel, the 2017 tax cuts will become permanent, and other programs will be funded.
This all started with the President’s initiative to reduce the size of government. Since late January, dozens of executive orders, fact sheets, and memoranda have been issued to effect this and many other government and federal workforce changes.
The Good, Bad, and the Ugly
It hasn’t all been bad news for feds and retirees. The Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) were repealed last December, putting more money into the hands of many annuitants. OPM is streamlining its operations and most recently announced that all retirement applications will be submitted online, no more paper applications! This was long overdue.
Employees’ personnel files are now available online through OPM’s new platform, which was launched this June. Certain agencies are expanding; others are going the other way, including the Department of Education, which may soon be sunsetting its operations and shifting its primary functions to other federal agencies and back to the States.
It’s a mixed bag for everyone, and federal employees across the country are walking on a tight rope, wondering if their jobs will be impacted. It’s not a comfortable position. Even those keeping their jobs may have to relocate. The FBI is reassigning 1,500 of its agents from the DC area to field offices around the country.
Returning to the Office
In January 2025, President Trump issued an executive order requiring federal employees to return to the office full-time. Agencies have some flexibility in approving exemptions when needed.
Since the COVID pandemic, almost half of the federal workforce has been working from home until recently. Most were ordered back to the office, with exceptions for specific occupations and those covered by union contracts that had negotiated agreements extending work-from-home practices. In many cases, these contracts are pending renegotiation.
This was a significant change for many who were accustomed to working from home. They had to reorganize their priorities, arrange for child or eldercare, and restart commuting to work every day.
Downsizing the Workforce
Federal agencies face significant downsizing initiatives, including involuntary and voluntary workforce cuts. Legal challenges have paused some agency mass layoffs; others are continuing with restructuring and reduction-in-force (RIF) actions. The total staffing reductions could match or exceed the 400,000 that former President Clinton made in the late 1990s. Approximately 10 to 15 percent of the civilian federal workforce will be impacted.
Much of this downsizing can be achieved through Voluntary Early Retirement Authority (VERA) with accompanying Voluntary Separation Incentive Payments (VSIPs). That’s what happened in the late 1990s during the Clinton downsizing efforts. I was a federal manager then; many took advantage of early-out offers.
Stay Agile
Over my 35-year career, I worked for the government in multiple capacities. During that time, I went through four major reorganizations and downsizing initiatives. None were pleasant, and all of my work associates felt the impact to one degree or another. Twice, the organizations I served in were shuttered, and I had to move to another. It happens.
I can say without reservations that the reorganizations I went through cleared my path to bigger and better things. When one door closes, another often opens for those who take the initiative and make things happen.
Change is a constant in life; no matter how much we hate it, it happens at lightning speed. This is one of those times, so hold on to your hat; it could be a bumpy ride for many.
