House Bill Could Cut FERS Supplement for DRP Retirees
May 05, 2025When Congress promises stability and then moves the goalposts, anxiety spikes—especially for federal employees who planned their exit down to the dollar. Last week a House budget draft cleared committee that would eliminate the FERS “first supplement” the moment it becomes law and shift pensions to a “high-five” calculation by 2027. For many Deferred Resignation Program (DRP) participants, that supplement covers roughly one-third of post-retirement income until Social Security starts at 62. The proposal feels like a bait-and-switch, but there is still time—and strategy—to respond mindfully.
What Exactly Changes?
Under today’s rules, DRP retirees receive the FERS supplement plus full accrued leave through September. The House bill would:
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End the supplement immediately upon enactment—even for those already retired.
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Require all FERS employees to contribute the higher 4.4 % payroll deduction.
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Calculate your annuity on your highest five consecutive salary years beginning in 2027, lowering lifetime benefits for many.
The measure must still pass the full House, survive the Senate, and clear reconciliation—steps that often stall, shrink, or quietly die. Yet legislative calendars can collapse from months to days, so vigilance matters.
Who Is Most at Risk?
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Current DRP retirees counting on the supplement through age 62.
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Employees planning to separate under DRP in late 2025 or later, when a sudden enactment date could erase expected dollars.
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Mid-career feds (GS-9+) with overtime or hazardous-duty pay inflating their high-three but not their high-five averages.
Immediate Action: Audit Your Numbers
- Pull your latest retirement estimate and isolate the monthly supplement. Knowing the exact figure punctures vague dread and shows the stakes.
- Run the “no-supplement” scenario in your agency calculator or on OPM’s FERS benefit estimator. Does the gap break your budget?
- Check your calendar. If you aimed to retire after a potential vote, explore whether an earlier separation is feasible. In some cases, beating the clock preserves the benefit.
Strategic Timing and Mindful Decision-Making
Retiring sooner means weighing cash flow, health-insurance eligibility, and your readiness to leave public service. A quick mindfulness exercise—slow breath in, slow breath out—can help separate fear from facts so you act, not react. If rushing the exit feels wrong, draft a contingency plan instead.
Make Your Voice Heard
Legislators respond better to stories than spreadsheets. A brief letter explaining how the supplement shaped your DRP decision—and what losing it would mean—carries weight. Coordinate through your union, professional associations, and agencies’ legislative affairs offices to amplify impact.
Stay Informed Without Doomscrolling
Set up alerts from reputable journalists covering federal workforce policy and follow trusted union channels. Updates can move fast; balanced sources prevent rumor-driven panic. A twice-daily check-in, paired with a grounding pause, protects both awareness and wellbeing.
Legal Disclaimer: The information provided in this article is for informational purposes only and should not be construed as legal advice. While I am a federal employment attorney, this post does not create an attorney-client relationship. Every situation is unique, and legal outcomes depend on specific facts and circumstances.