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Federal Employees Update
May 21, 2025

Regarding the FERS proposals contained in the House budget bill, below is a quick list of where things stand now. 

  • Increased FERS annuity contributions OUT for current employees hired before 2014 with a lower contribution percentage, IN for new employees (no date), depending on their at-will employment election

  • Supplemental Annuity takes effect on January 1, 2028, but anyone who is entitled* to the supplement prior to that is grandfathered in; employees who are part of an ‘early retirement’ (i.e., VERA or DRS) are also exempted

  • The change from High-3 to High-5 for annuity calculations has been removed from the House version

  • FEHB changes have already been removed


*’Entitled’ is the language used in the U.S. Code describing the Retiree Annuity Supplement (RAS); it references an employee having met the service and age requirements to retire, thus being ‘entitled’ to the RAS.

Are you a federal employee trying to figure out how to put the FERS puzzle pieces together, especially in these trying times? Here are five ideas:

  • Keep checking this page for updates on the FERS-related provisions in the 2025 Budget Bill.