Your federal benefits changed this year. Here’s what to know

What changed in your federal benefits in 2026 — and what could change next? Agencies updated federal retirement, insurance, Social Security and Thrift Savings Plan programs, while Congress considered proposals affecting future pay and benefits. This article summarizes the changes that took place in 2026 along with the links to official sources.

Review the 2026 changes now and watch for 2027 updates this fall. During Federal Benefits Open Season, OPM will soon begin to publish 2027 plans, premiums and coverage information. The September CPI release on Oct. 14, 2026, will provide the final CPI-W data used to determine 2027 Social Security and federal retirement COLAs.

Legislative watch: enacted changes and congressional proposals

Status as of Sept. 24, 2026: A proposal changes benefits only after both chambers pass identical text and the president signs it. The section below separates current-law changes from selected 119th Congress proposals.

How likely is enactment? Remember that most proposals do not become law. By September 2026, 112 of the 18,956 measures in the 119th Congress had become stand-alone laws; 431, or only about 2%, had been enacted alone or through another measure. Bills often stall in committee, lose floor time, face policy or budget objections, fail to clear Senate procedures or expire before both chambers agree.

H.R. 8364 has advanced the furthest among the proposals below because it passed the House. These are not bill-specific forecasts. 

Track a bill: Search its number on Congress.gov, then review “Latest Action,” committees, text and related bills. Cosponsors show support; committee action or chamber passage shows more meaningful progress. 

Other resources: Membership associations, unions and nonpartisan public-interest organizations may provide education and legislative updates. Compare their information with official OPM, SSA, TSP and Congress.gov sources. Examples: NARFE serves active and retired federal employees; AFGE and NTEU serve represented employees; FMA serves eligible managers, supervisors, executives and retirees; and NAPS serves eligible Postal Service supervisors, managers and postmasters. Eligibility, dues, services and viewpoints vary.

Federal employee pay for 2027

• Administration plan: The Aug. 26 alternative pay plan would keep most 2027 General Schedule base and locality rates at 2026 levels. OPM is developing a 3.8% special-rate increase for covered law-enforcement personnel, tentatively effective Jan. 10, 2027; final coverage is still pending. OPM pay information.
• FAIR Act (H.R. 7480/S. 3823): Would raise statutory basic and prevailing-rate pay 3.1% and locality pay 1% for 2027 — an average 4.1%, according to sponsors. Both bills remain in committee. House bill; Senate bill.

Federal retirement benefits

• No broad 2026 FERS reduction: House-passed 2025 proposals, including elimination of the FERS annuity supplement for many future retirees, were not included in the enacted law. C
• Equal COLA Act (H.R. 491/S. 624): Would give eligible FERS annuitants the full CSRS/Social Security COLA formula. Both bills remain in committee and neither has passed a chamber. 
• Federal Retirement Fairness Act (H.R. 1522): Would allow certain post-1988 temporary service to count under FERS after a deposit. Introduced Feb. 24, 2025, it remains in House committee. 
• Targeted proposals: H.R. 8364, allowing a Capitol Police retirement age of 57-65, passed the House April 27, 2026, and awaits Senate action. H.R. 10283, limiting retirement credit for certain Members, remains in House committees. Neither affects the general workforce. 

Federal insurance benefits

• No broad 2026 FEHB, PSHB, FEGLI or FEDVIP benefit law identified: The 2026 premium and plan-option changes described below are annual program changes, not newly enacted benefit statutes.
• FEHB Protection Act (H.R. 2193): Would require OPM to verify qualifying life events and family-member eligibility when dependents are added to FEHB or PSHB coverage and to include ineligible enrollment in fraud-risk reviews. The House committee ordered the bill reported, but it has not become law. 

Social Security retirement and survivor benefits

• Current-law changes affecting 2026 payments: The 2.8% COLA, higher taxable maximum and revised earnings-test thresholds took effect automatically under existing law; they were not created by a new 2026 act of Congress. The most recent major statutory benefit change remains the Social Security Fairness Act, enacted Jan. 5, 2025, which repealed the Windfall Elimination Provision and Government Pension Offset for benefits payable after December 2023. 
• Social Security 2100 Act (H.R. 9519/S. 5042): Would temporarily raise benefits, revise COLAs and minimum and survivor benefits, add caregiver credits and increase revenue. Both 2026 bills remain in committee. House bill; Senate bill.
• Senior Citizens’ Freedom to Work Act (H.R. 8344): Would repeal the Social Security retirement earnings test, which currently withholds some benefits when a beneficiary below full retirement age has earnings above the annual limit. Read the bill.
• Other proposals: H.R. 1700 and S. 3462 would raise benefits, change the COLA measure and tax higher earnings. Both remain in committee, and neither has passed a chamber. 

Medicare

• Current-law changes effective in 2026: Under the Inflation Reduction Act, negotiated prices took effect for the first 10 selected high-spending Medicare drugs, and the Part D annual out-of-pocket threshold rose to $2,100 after inflation adjustment.
• Medicare Advantage Improvement Act of 2026 (S. 4384): Would shorten certain prior-authorization decision timeframes and make other Medicare Advantage reforms. Introduced April 27, 2026, it remains referred to the Senate Finance Committee.
• Commission on Sustaining Medicare and Social Security Act (H.R. 9089): Would establish a commission to recommend options on solvency, premiums, fraud and program integrity. Introduced June 2, 2026, it remains in House committees.

Thrift Savings Plan

• SECURE 2.0 rules effective in 2026: Under legislation enacted in 2022, catch-up contributions must be Roth for participants whose prior-year wages from the plan sponsor exceeded $150,000, and participants ages 60 through 63 retain the higher $11,250 catch-up limit. The regular 2026 TSP deferral limit is $24,500 and the general age-50 catch-up limit is $8,000. 
• TSP Modernization Act (H.R. 9214): Would require permitted transfers from TSP accounts to qualified retirement plans at brokerage firms to be available electronically. The bill was introduced June 9, 2026, and remains referred to the House Committee on Oversight and Government Reform; it has not become law. 
• TSP Fiduciary Security Act (H.R. 7357): Would add a national-security consideration to TSP fiduciary duties and require a compliance review.
• Emergency withdrawals: S. 2966/H.R. 5674 would waive the 10% additional tax on up to $30,000 during a shutdown; H.R. 6929 would allow certain separated employees up to $100,000 in penalty-free distributions. All remain in committee. 
• FORWARD Act (H.R. 4996): Would allow certain retired or totally disabled former uniformed-service members with an existing TSP account to continue contributing from retired pay or disability compensation, without agency matching.

The proposals above may shape future policy, but the sections below focus on changes already affecting employees, annuitants, survivors and TSP participants in 2026. Each section links directly to the agency responsible for administering the program.

Recent OPM updates

• 2026 retiree COLAs: Eligible Civil Service Retirement System annuitants receive a 2.8% increase, while eligible Federal Employees Retirement System annuitants receive 2.0%. The adjustment took effect Dec. 1, 2025, and was reflected in January 2026 payments. A first COLA may be prorated. FERS COLAs generally do not apply before age 62, subject to statutory exceptions, and do not increase the FERS annuity supplement.
• Federal Workforce Data site: In January 2026, OPM launched the redesigned Federal Workforce Data site to replace FedScope. The separate data site offers interactive visuals, downloadable datasets, monthly updates and expanded workforce information; it was not a redesign of the entire OPM.gov website.
• CHCO Council memoranda: On Aug. 28, 2025, OPM moved Chief Human Capital Officers Council memoranda directly onto OPM.gov. The change organizes agency guidance alongside other OPM resources, making policy updates easier to find and access.
• Online retirement processing: OPM’s digital Online Retirement Application provides pre-filled information, annuity estimates, document uploads, completeness checks and status tracking. Contact your agency HR office to begin; OPM assists after receiving the case and assigning a CSA claim number. 
• August 2026 processing: OPM received 7,618 claims, processed 15,281 and ended with 15,427 pending. Average processing time was 70 days for digital claims, 150 for paper and 79 overall. 
• Reemployed annuitants: OPM issued new decision tables on March 24, 2026, to help agencies determine CSRS/FERS retirement coverage and the treatment of FEHB and FEGLI benefits when an annuitant is reemployed, separates or dies during reemployment. 
• 2026 coverage: OPM offered 132 FEHB, 75 PSHB, 21 FEDVIP dental and 10 vision options. Average enrollee premiums rose 12.3% for FEHB, 11.3% for PSHB, 3.35% for dental and 0.47% for vision.

Recent Social Security updates

• 2026 benefit increase: Social Security retirement and survivor benefits increased 2.8% for 2026. SSA estimates the average retired-worker benefit at $2,071 per month and the average benefit for an aged widow or widower living alone at $1,919 per month after the increase. 
• Working while receiving benefits: The 2026 earnings limit is $24,480 before full retirement age, with $1 withheld for every $2 above it. In the year full retirement age is reached, the pre-birthday-month limit is $65,160, with $1 withheld for every $3 above it. No limit applies afterward. 
• Survivor eligibility: A surviving spouse may qualify at 60, at 50 if disabled or at any age while caring for the deceased worker’s child under 16 or with a disability. Eligible divorced spouses may also qualify. Benefits generally range from 71.5% to 100% based on claiming age. 
• Applying: Survivor benefits cannot currently be requested online; call 1-800-772-1213. If both retirement and survivor benefits apply, SSA generally pays the higher amount rather than adding them together.

Recent Medicare updates

• 2026 Parts A and B costs: The standard Part B premium is $202.90 per month. The Part A inpatient deductible is $1,736 per benefit period; most beneficiaries continue to receive premium-free Part A. 
• Part D prescription costs: The annual out-of-pocket threshold is $2,100 in 2026. Negotiated prices for the first 10 selected drugs also took effect Jan. 1, 2026, alongside updated Part D plan, manufacturer and Medicare payment responsibilities. 

Recent Thrift Savings Plan updates

• Refreshed TSP website: It is now easier to find what you need on tsp.gov. The redesigned site helps you quickly check contribution and withdrawal information, compare funds, find guidance for major life events, use forms and calculators and get help with My Account.
• Death reporting: Anyone may report a participant’s death, although an agency reports an active employee’s death. The secure Life Events Hub accepts documents and provides updates. Gather identifying, marital and employment information plus a legible certified death certificate; foreign certificates may require English translation. Reports may also be made through the ThriftLine at 1-877-968-3778, by mail or by fax.
• My Account has a new address: TSP says the new sign-in address is tsp.gov/login and advises participants to update saved bookmarks. Sign in at the new My Account address.
• 2026 limits: The elective-deferral limit is $24,500. Catch-up limits are $8,000 for ages 50-59 and 64+, and $11,250 for ages 60-63.
• Roth catch-up rule clarification: Beginning in 2026, catch-up contributions must be Roth for participants whose prior-year FICA wages from their TSP-contributing employer exceeded $150,000. TSP updated its agency guidance in June 2026 to specify that, beginning in 2027, payroll offices should use Box 3 of Form W-2 to determine prior-year FICA wages for this rule.
• Roth conversions: Eligible participants and spousal beneficiaries may convert traditional TSP money to Roth in My Account. The minimum is $500, with up to 26 conversions per account annually; conversions are irrevocable and generally taxable that year

Summary

In 2026, key developments included retirement and Social Security COLAs, digital retirement processing, insurance changes, updated TSP limits and Roth rules and new online tools. Pending bills could affect future pay and benefits, but current benefits change only when a proposal becomes law.

To prepare for retirement, review benefit statements, beneficiaries, insurance, Social Security estimates and TSP elections regularly. Watch Open Season, COLA, pay and legislative announcements, and confirm decisions with the administering agency. Acting early can make the transition smoother and protect future income, coverage and survivors.

Beginning next month and through the end of this year, get ready for the announcements of the 2027 updates for Social Security, Medicare, health insurance, TSP and your retirement.