FERS Pension Reform Proposals in 2026: Will Congress Cut Your Federal Retirement Benefits?
Breaking: Congressional proposals to change FERS pension benefits are advancing through committee, and every federal employee needs to understand what is at stake. If enacted, these changes could reduce your retirement income by 5-15% or more — costing you tens of thousands of dollars over a 25-30 year retirement. At Warrior Retirement , we are tracking every proposal and breaking down exactly what each change means for your paycheck, your pension, and your retirement timeline. The Four Major FERS Pension Reform Proposals 1. Switching from High-3 to High-5 Salary Calculation Currently, your FERS pension is calculated using your high-3 average salary — the average of your highest three consecutive years of basic pay. The proposal would change this to a high-5 average , meaning your pension would be based on the average of your highest FIVE consecutive years. Why this matters: For most federal employees, salary increases most rapidly in the final years of service. Adding ...