When retirement calculations don’t move on the same timeline

One of Henry Ford’s famous quotes, “Coming together is a beginning; keeping together is progress; working together is success,” describes how the business of providing retirement counseling to federal employees should work.

In the 40-plus years I’ve been helping federal employees through the process of retirement, I have learned from many experts along the way.

The late Mike Causey, one of my heroes in this business, wrote a column more than 26 years ago in The Washington Post titled “In-House Personnel Helpers Are Harder to Find.” The column began: “Downsizing has reduced the number of personnel specialists available to help federal workers get the most from their benefits package. Buyouts and early retirements also have taken away some of the most experienced people in the shrinking field of human resources, which provides counseling to workers on health and life insurance and retirement planning.”

He could have written that same column today, don’t you agree?

Although there are still experienced and caring retirement specialists throughout the federal government, many are overwhelmed by the volume of retirements they process in their agencies, and some lack the depth of experience needed to provide effective assistance. They can call the Office of Personnel Management for help; however, many employees still rely on resources like this column and outside experts to prepare for retirement.

Fortunately, I am honored to have colleagues with vast experience in this area, and I can turn to them when I need help answering questions from federal employees and annuitants.

I have a saying: “No one on this earth knows everything there is to know about federal retirement benefits.”

When a recent question stumped me, I knew just who to contact for help.

Allen, a reader of this column, wrote recently:

“I have never seen an article addressing this, so I will ask here. The USPS newest union contract was settled in April 2025. However, the Office of Personnel Management already had my monthly annuity configured on my last high-3 years prior to those new wage rates being instituted and back pay received in August 2025.

“So, I let OPM know that they needed to subtract my COLA computed for 2025 pension and then refigure my high-3 with the new contract rates and reassess my correct annuity. So far, I’ve sent two letters to OPM, and nothing has been done.

“However, in a discussion with one of the OPM reps, she agreed with my analysis and said OPM needed to correct this oversight before processing other future retirees so it can avoid additional administrative work in the future.”

I understood the question involved a retroactive pay increase dating back before Allen’s retirement. It makes sense that the increased pay rates should be included in his high-3, but I was not sure how the correction would be handled. Given the current volume of retirement applications, any adjustment could take time.

To find clarity, I first reviewed information from the National Association of Letter Carriers regarding the newest Postal Service union contract.

In 2025, the Postal Service implemented the first six wage increases under the 2023–2026 National Agreement. These include four cost-of-living adjustments and two general wage increases. Career letter carriers will receive full back pay covering the period between Aug. 26, 2023 — the effective date of the first COLA — and April 18, 2025.

Next, I turned to my longtime colleague, Joni Montroy, who specializes in helping postal workers retire across the country. She explained: “A retiree does not have to ask. The Postal Service sends registers to the Office of Personnel Management when retroactive pay is issued, including retiree names and salary adjustments. That would have occurred after August 2025 for the National Association of Letter Carriers.

“It can take up to a year after the Office of Personnel Management receives the information to review and adjust a retiree’s high-3. There are simply too many cases at once.”

She added that rural carriers and postal workers have also recently received similar adjustments, making the workload substantial across multiple bargaining units. Each contract settlement requires significant processing time and patience.

Postal retirees are also facing additional uncertainty beyond back pay issues.

A recent Postal Service Board of Governors report said the agency will temporarily suspend employer contributions for Federal Employees Retirement System annuities, effective April 10.

The Postal Service said the move is intended to conserve cash and preserve liquidity amid ongoing financial strain, with potential insolvency projected as early as February 2027.

Employee contributions to FERS will continue to be withheld and transmitted to OPM. Employer automatic and matching contributions, as well as Thrift Savings Plan and Social Security contributions, will also continue.

The Postal Service said there will be no immediate impact on current or future retirees.

In response, William Shackelford, president of the National Active and Retired Federal Employees Association, issued the following statement:

“The U.S. Postal Service’s decision to suspend its contributions toward employee retirements is legally questionable — at best, detrimental to the future retirement security of its employees, premature given USPS does not face imminent insolvency, and only serves to delay when Congress must craft a solution to maintain USPS operations due to its financial situation.

“Federal statute 5 U.S.C. § 8423 imposes a clear obligation to make employer contributions to CSRDF. It is not clear what legal authority the Postal Service Board of Governors is claiming to make this unilateral decision to ignore that obligation.

“While this pause does not pose an immediate threat to the payment of retirement annuities, it sets a dangerous precedent for the funding of postal and federal retiree pensions. Continued failure to pay employer contributions would create an unfunded liability that would need to be addressed in the future.

“USPS is not projected to run out of cash until February 2027. That should prompt Congress to act to ensure solvency. But it does not justify this action at this time.

“Congress must consider a financially viable path forward for the Postal Service while honoring commitments to postal retirees. They should start by extending the borrowing limit, which remains capped at 1990 levels. The organization is also open to a more balanced approach to retirement and health fund investment, as long as pension payments remain guaranteed.”