Prosperity Capital Advisors, Formerly Franklin Planning

09/09/2026

OPM's Guidance on The New RIF (Reduction in Force) Procedures

OPM's revised RIF regulations, along with a separate new RIF appeals rule, took effect September 2, 2026. OPM has now issued an initial guidance memo — including a set of FAQ documents — reminding agencies that these provisions are now in effect and clarifying how to apply them.

Key points from the guidance:
• Employee coverage: Initial probationary and trial-period employees, specified temporary or short-term time-limited employees, and Schedule C and Schedule G employees are excluded from RIF competition.
• Competitive areas: Agencies may define competitive areas using official organizational units or geographic locations. Establishing or materially changing an area within 90 days of issuing RIF notices requires OPM approval beforehand.
• Transfers of function: The transfer-of-function procedures apply only to transfers of work between agencies — not internal reassignments of work within a single agency.
• Retention standing: Competitive service and excepted service employees are placed on separate registers. Within those, employees are ranked primarily by performance credit, augmented by veterans' preference points, with tenure subgroup and service computation date used as tie-breakers. This replaces the older framework where tenure/seniority was the top factor.
• Records access: Employees (or their representatives) may inspect the completed records used in a RIF action, including the applicable retention register and other registers affecting their competitive level or assignment rights. Agencies must preserve RIF registers and records for at least two years after issuing specific notices.
• OPM noted it plans to issue additional guidance later on implementing the revised regulations.

Broader context: This guidance follows OPM's finalized rule (published August 3, 2026) that elevates performance ratings over tenure in RIF decisions and shifts RIF appeal authority from the Merit Systems Protection Board to OPM's own Merit System Accountability and Compliance (MSAC) office, with a record-based (rather than hearing-based) appeals process.

Source:
https://www.fedweek.com/federal-managers-daily-report/opm-issues-initial-guidance-on-new-rif-procedures-reminds-agencies-they-are-now-in-effect/

09/08/2026

Federal Employee Retirement Planning

Federal employee retirement planning centers on coordinating three income sources:

 FERS Pension
 Social Security
 Thrift Savings Plan (TSP) — and making key timing, service credit, and benefit elections that maximize lifetime income.

Core Framework: The Three Pillars of Federal Retirement
Federal employees under FERS rely on a three part system:
• FERS Basic Annuity (Pension) — Defined benefit based on High 3 salary × years of service × 1% or 1.1% multiplier.
• Social Security — FERS employees pay into and receive full benefits.
• Thrift Savings Plan (TSP) — 401(k)-style account with agency automatic 1% and matching up to 5%.

FERS Pension — What Determines Your Benefit
• High 3 Salary: Average of your highest-paid consecutive 36 months.
• Years of Creditable Service: Includes civilian service, military deposits, and unused sick leave.
• Multiplier:
o 1% for most retirements
o 1.1% if retiring at 62+ with 20+ years, increasing pension by ~10%
• Retirement Eligibility:
o Age 62 with 5 years
o Age 60 with 20 years
o MRA (55–57) with 30 years
o MRA +10 with 10–29 years (permanent reduction)
• FERS Supplement: Paid to certain retirees until age 62; replaces part of Social Security.
• Sick Leave Credit: 2,087 hours = 1 extra year of service credit.

Thrift Savings Plan (TSP) — Your Growth Engine
• Contribute at least 5% to receive full agency match.
• Increase contributions annually to build long-term compounding.
• Investment strategy:
o Under 50 → Growth funds (C/S/I)
o 50–60 → Balanced mix
o 60+ → More G/F stability
o Or use L Funds for automatic lifecycle allocation.
o
Social Security — Critical for FERS
• FERS employees pay full payroll taxes and receive full benefits.
• Claiming age affects lifetime income — delaying increases benefit amounts.
• Must coordinate with pension + TSP withdrawals to avoid tax spikes.

Health & Survivor Planning
• FEHB: Must be enrolled for 5 years before retirement to keep coverage. Missing this rule is one of the most costly mistakes.
• Medicare: Most retirees keep FEHB + Part A; Part B is optional based on cost/usage.
• Survivor Benefits: Electing a survivor annuity ensures spouse keeps FEHB and part of your pension.

Common Mistakes to Avoid
• Retiring before earning the 1.1% multiplier at age 62 with 20 years.
• Misunderstanding the FERS Supplement rules.
• Not contributing enough to TSP early in career.
• Missing FEHB 5-year rule.
• Retiring at MRA with too few years and triggering permanent reductions.
• Poor withdrawal timing causing unnecessary taxes.

Putting It All Together: What a Strong Plan Includes
• Target retirement age based on eligibility + multiplier.
• High 3 optimization (promotions, locality pay).
• TSP growth strategy + Roth vs Traditional planning.
• Social Security timing strategy.
• Survivor benefit and FEHB retention decisions.
• Written income plan coordinating pension, TSP, and Social Security.

Sources:
OPM
Federal Pension Advisors

09/05/2026

Bond Market Movements Point to Growing Fiscal Risks
With bond yields soaring and the national debt crossing $40 trillion, global investors appear to be weighing the risks of financing U.S. deficits more heavily. The recent reaction of the bond market sends an important message for fiscal policymakers.
Please follow the link to read more from The Peter G. Peterson Foundation
Bond Market Movements Point to Growing Fiscal Risks

09/02/2026

TSP Monthly Returns — August 2026 (All Funds Positive)

Core Funds
• I Fund: +3.32% — strongest performer; one of its best Augusts in 20 years.
• C Fund: +2.72% — S&P 500 hit record highs mid-month before a late pullback.
• S Fund: +2.27% — small caps benefited from cooling inflation and strong earnings.
• G Fund: +0.41% — steady, typical monthly gain.
• F Fund: +0.40% — bond yields fluctuated, but settled low enough for a modest gain.

Lifecycle (L) Funds
All L Funds gained between ~1% and ~3%, with later dated funds performing best due to heavier stock exposure.

What Drove August’s Performance
• Cooling inflation: July CPI rose just 0.1%, boosting investor confidence.
• Strong corporate earnings: Tech and AI linked companies continued to lead markets.
• Late month volatility: A hawkish Fed speech caused a brief pullback, but all funds still finished positive.

Additional Context from Weekly Data
Weekly reports throughout August confirm the same trend:
• Early August (Aug 3–7): All core funds positive; S Fund +4.75%, C Fund +3.59%.
• Mid August (Aug 10–14): S and I Funds each gained over 1%.
These weekly gains contributed to the strong full month performance.

Quick Takeaway
August 2026 was a uniformly positive month for TSP investors, led by international stocks (I Fund +3.32%) and supported by cooling inflation, strong earnings, and resilient equity markets despite late month Fed concerns.

Sources:
FEDweek
Government Executive

09/02/2026

How Could The EEOC’s Proposed Reforms Affect Federal Employees

The EEOC’s proposed reforms would fundamentally reshape how federal employees file, investigate, and pursue discrimination complaints — reducing several long standing protections while aiming to speed up case resolution. Below is a clear, sourced, client ready summary.

Key Changes Federal Employees Would Face
1. End of Mandatory Pre Complaint Counseling
Federal employees would no longer be required to undergo the 30–90 day EEO counseling stage before filing a formal complaint. Instead, they could file directly with their agency within 60 days of the alleged incident.

Impact:
• Faster filing, but fewer opportunities for early settlement.
• Removes a step that currently resolves only ~1% of cases via counseling, compared to 11% through ADR.

2. Loss of Automatic Right to a Hearing Before an EEOC Administrative Judge

Employees would no longer be guaranteed a hearing. Hearings would be granted only when EEOC officials deem them necessary, and complainants may need to justify why a hearing is needed.
Impact:
• Fewer independent reviews by EEOC judges.
• Agencies may have more control over outcomes.
• Could reduce years long delays (current average wait: 2.63 years).

3. Elimination of Administrative Class Complaints
Employees would no longer be able to file class action discrimination complaints through the EEOC’s administrative process.

Impact:
• Employees with similar claims must each exhaust individual cases, then file a class action in federal court.
• Makes systemic discrimination cases harder to pursue administratively.

4. More Limited Discovery Rights
For cases that do receive hearings, employees would lose access to discovery, meaning they cannot request documents or evidence from the agency.

Impact:
• Harder for employees to gather evidence.
• Agencies retain more control over the investigative record.

5. Higher Pleading Standards & Clearer Case Requirements
The EEOC plans to impose heightened pleading standards and clarify rules for mixed case complaints.

Impact:
• Complaints may be dismissed more easily if not precisely drafted.
• Employees may need more legal assistance to meet new standards.

6. Shift Toward “Targeted Referral” Hearings
Instead of automatic hearings, the EEOC would use a targeted referral model, sending only select cases to administrative judges.

Impact:
• Faster processing for many cases.
• Reduced independent oversight for others.

Bottom Line for Federal Employees
The EEOC’s proposed reforms aim to speed up the federal EEO process, but they also reduce procedural protections that employees have relied on for decades.

Most significant effects:
• Faster filing but fewer early settlements
• Reduced access to independent EEOC judges
• No administrative class actions
• Limited discovery
• Higher standards for filing complaints

Supporters say the reforms will reduce backlogs and delays. Critics — including AFGE — warn they will make it harder for federal employees to win relief and weaken accountability.

Sources:
FedWeek
Government Executive

08/27/2026

How Do Federal Employees Feel About AI in Their Work?

Adoption is high, but trust and time are the sticking points. In what appears to be the first survey of its kind, OPM polled its own employees and found that more than four-fifths (81.4%) have used OPM-approved AI tools in some capacity in their jobs. But the perceived impact hasn't caught up to adoption: on a 0–10 scale, employees rated AI's improvement to their work unit's performance at only 7.2–7.3 on average, and OPM Director Scott Kupor framed this as "high adoption – lower perceived impact" — an opportunity to deepen integration rather than a success story yet.

The biggest barrier isn't distrust of AI itself — it's time. When OPM asked employees what's preventing them from using AI more effectively (they could pick up to three reasons):
• 47.5% cited lack of time to learn or experiment
• 34.3% cited accuracy or reliability concerns
• 23.8% cited security, privacy, or data sensitivity concerns
• 16.5% said tools lack access to the data/systems they use
• 14.9% don't see a relevant use case for their work
• 14.7% cited lack of training
• 12.8% are concerned about how AI may affect their role or job security
• Only 1.4% said their supervisor discourages AI use

Kupor pushed back on the security and accuracy worries specifically, arguing employees shouldn't need to vet tools themselves since IT already handles that, and comparing AI output review to normal proofreading of any work product (PowerPoint, Excel, etc.).

Broader workforce morale is a complicating backdrop. This AI rollout is happening amid a period of unusually low federal employee morale. A Partnership for Public Service survey of over 11,000 federal employees found governmentwide engagement scored just 32 out of 100 in 2025, with 58% of respondents saying their engagement had worsened since 2024, and only about 10% saying they trust their political leadership. Commentary from Government Executive has argued this broader disengagement and "workforce trauma" — following major staffing cuts — is itself becoming a stumbling block to AI adoption, since integrating new tools well typically requires institutional stability and engaged workers, both of which are in short supply right now.

Context matters here: the OPM survey reflects employees' experience with agency-approved tools in a controlled rollout, while the morale data reflects a separate, harder political and staffing environment. Both are shaping how AI adoption is actually landing on the ground.

Survey of OPM Employees on Using AI at Work Reveals Trust Issues-FEDweek
Secrets of OPM: Time for a Check-Up (AI adoption survey results)OPM.gov
Federal workforce trauma is creating a stumbling block for AI adoptionGovernment Executive
Survey of 11,000 feds underscores 'layer cake of trauma'Government Executive

08/24/2026

How the US National Debt Reached $40 Trillion

The US national debt crossed $40 trillion on August 19, 2026 — an event that's dominated headlines this week. Here's how it got there:

The pace of growth is historic. Treasury data showed the gross national debt reached $40,047,425,768,420.22 as of August 18. The debt first crossed $20 trillion in late 2017 and reached $39 trillion just five months ago, in March 2026 — and $38 trillion five months before that, in October 2025. At the start of the 21st century, gross debt sat at just $5.7 trillion, and the country was actually running a budget surplus at the time, on track to effectively eliminate the debt by 2009. Net interest costs approached $1 trillion in 2025, accounting for nearly 14% of federal spending, and interest payments have more than tripled over the past five years and are now roughly tied with Medicare as the government's second-largest expense, behind Social Security.

Four main forces, compounding over decades:

1. Tax cuts that reduced revenue. Trump implemented deep tax cuts for businesses starting with the 2017 Tax Cuts and Jobs Act, which slashed the corporate tax rate from 35% to 21%. Seven rounds of major tax cuts and extensions since [the early 2000s] have reduced revenue relative to spending.

2. Structural growth in entitlement and interest spending. The number of people collecting Social Security and Medicare benefits has grown as the population ages, making those programs more expensive, while interest payments have simultaneously climbed. Defense costs, Social Security, Medicare, and interest on the debt now make up an enormous share of federal spending.

3. Crisis-driven borrowing. About one-third of the debt increase since 2017 occurred in the two years following the COVID-19 pandemic's start in March 2020, as both the Trump and Biden administrations borrowed heavily for pandemic relief.

4. Persistent deficits regardless of party. The Peterson Foundation's CEO noted the US has run deficits for the last 26 years, and structural budget challenges have been largely ignored, with the problem accelerating the longer it's put off. The deficit for the first 10 months of fiscal 2026 already exceeds the total gap for all of fiscal 2025, with two months still to go.

Recent acceleration. The debt eclipsed $37 trillion years sooner than pre-pandemic projections — the CBO's January 2020 estimate had it happening only after fiscal year 2030. Trump's 2025 tax and spending legislation is projected by the CBO to add $4.1 trillion to the debt over the next decade. The $40 trillion mark itself came in above the CBO's own forecast of $39.4 trillion by the end of fiscal 2026, driven in part by tariff-refund-related revenue losses.

What it means practically. The $40 trillion figure works out to roughly $117,000 in debt per person and $297,000 per household. Debt is now projected to reach $50 trillion within a few years, and interest payments already exceed what the US spends on national defense. Economists say the rising debt is already raising borrowing costs for everyday things like mortgages and car loans.

Sources:

National debt tops $40 trillion after doubling in less than a decade-CBS News

7 questions about the national debt hitting $40 trillion-PBS News

4 Ways the United States Got to $40 Trillion in National Debt-Peter G. Peterson Foundation

National debt reaches grim $40 trillion milestone. Here's why that matters-CNN Business

The U.S. debt tops a record-shattering $40 trillion-NPR

https://www.aljazeera.com/economy/2026/8/20/us-debt-hits-40-trillion-who-does-washington-owe-and-why-does-it-matter

08/24/2026

Info For Federal Employees to Know About the FLTCIP

Enrollment is suspended through at least December 2026. OPM began suspending new FLTCIP enrollments in December 2022 and has since pushed the suspension deadline to December 19, 2026. While the suspension is ongoing, OPM will not accept any new applications for enrollments. Current enrollees will continue receiving coverage, but they will not be able to apply for increased coverage.

Why it happened. OPM determined the suspension was in the best interest of the program due to ongoing volatility in long term care costs and a diminished insurance market, which was undermining OPM's ability to set premium rates that fairly reflect the cost of benefits. This was originally meant to give OPM and the FLTCIP carrier, John Hancock Life & Health Insurance Company, time to thoroughly assess benefit offerings and establish sustainable premium rates.

If you're already enrolled, your coverage is safe. Even if you're no longer part of an eligible group — for example, if you leave government employment — you can keep your coverage as long as you continue paying the required premium and haven't exhausted your maximum lifetime benefit. The suspension will not affect the claims reimbursement process.

Premiums have risen sharply. FLTCIP premiums increased most recently on January 1, 2024, and for those who opted not to reduce benefits, the average increase was 86%. Enrollees with the automatic compound inflation option who selected that option (or made no selection) had the increase phased in over three steps: January 1, 2024, January 1, 2025, and January 1, 2026. Those with FLTCIP 3.0 coverage were not affected by this particular increase.

Who's eligible when the program reopens. Eligible groups include civilian federal employees and retirees, Postal Service employees and annuitants, active and retired military members, and qualified family members of feds.

What it covers. Care in a nursing home, assisted living facility, hospice facility, adult day care center, or at home is covered up to 100% of your daily benefit amount. If you're in a facility and need to leave temporarily (for example, for hospitalization), FLTCIP will pay for bed-reservation charges up to 100% of your daily benefit for up to 60 days per calendar year. Unlike most private LTC plans, FLTCIP has no war exclusion.

If you're not already enrolled and need coverage now, you'll have to look outside FLTCIP — for example, private standalone LTC insurance, hybrid life/LTC policies, or self-funding through savings — since the federal program isn't accepting new applicants during the suspension.

Sources:
OPM.gov — Long Term Care (FLTCIP)
Federal News Network
Ltcfeds

08/19/2026

How Do the Two Social Security Bills Affect Federal Employees?

Federal employees covered under the Federal Employees Retirement System (FERS) depend on Social Security as the second of three retirement income pillars:

FERS Pillar Description
1️⃣ FERS Basic Annuity Government pension based on years of service
2️⃣ Social Security FERS employees pay full SS payroll taxes and collect full benefits
3️⃣ Thrift Savings Plan 401(k)-style investment account

Unlike employees under the older Civil Service Retirement System (CSRS), most FERS workers are fully integrated into Social Security — meaning any change to the program hits their retirement income directly.

What Happens If Congress Does NOTHING?
The 2026 Trustees Report projects that without action, Social Security will cover only ~78% of scheduled benefits by 2032 — an automatic 22% cut. For federal employees, this means:

• Reduced retirement income at a time when they're no longer working
• Disrupted retirement timing — workers near retirement may need to delay claiming or work longer
• TSP strategy changes — employees may need to save significantly more to compensate
• Loss of confidence in the federal retirement promise that FERS was built on

📋 Bill 1: PROMISE Act (S. 4979) — Impact on Federal Employees
What it does NOT do (important reassurance): The PROMISE Act does not — on its own — cut benefits, raise payroll taxes, raise the retirement age, or change eligibility rules.

What it DOES mean for federal employees:
• ✅ Forces a vote — Prevents Congress from indefinitely kicking the can down the road, giving federal employees planning certainty sooner rather than later GovExec.comGovExec.com. Why Social Security's uncertainty is becoming a federal workforce issue - Government Executive
• ✅ Protects against automatic cuts — By requiring a legislative solution before the 2032 deadline, it blocks the worst-case scenario automatic 22% reduction
• ✅ Affects retirement planning now — The mere existence of a structured process allows FERS employees to plan more confidently rather than assuming a worst-case cut.
• ⚠️ The outcome is unknown — The Advisory Board's recommendations could include payroll tax increases (affecting federal paychecks), retirement age adjustments, or modified benefit formulas — all still to be determined

📋 Bill 2: Bipartisan Social Security Commission Act (H.R. 9187) — Impact on Federal Employees
What it does NOT do: Like the PROMISE Act, this bill does not immediately change any benefit, tax rate, or retirement age.

What it DOES mean for federal employees:
• ✅ 75-year solvency target — A longer-term fix than the PROMISE Act's 50-year target, offering greater long-term retirement security for younger federal workers still decades from retirement
• ✅ Expert-driven process — Modeled on the 1983 Greenspan Commission, which successfully reformed Social Security while protecting existing retirees — a reassuring precedent for federal workers.
• ✅ Guaranteed floor vote — Recommendations cannot die in committee, giving federal employee unions and advocates a clear moment to weigh in publicly
• ⚠️ Longer timeline — The Commission has up to one year to report, meaning reforms may come closer to the 2032 deadline, leaving less time for federal employees to adjust plans

🔑 Special Consideration: WEP & GPO Already Repealed
It's worth noting that a major victory for federal employees already occurred — the Social Security Fairness Act, signed in January 2025, permanently repealed the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO).

The SSA has already distributed $17 billion in retroactive payments back to January 2024. metalsretirement.commetalsretirement.com. Social Security Fairness Act 2025: WEP & GPO Repeal Explained for Federal Employees The two new bills build on this momentum — they work to protect the solvency of the program whose benefits have now been fully restored to federal workers.

✅ Bottom Line for Federal Employees
Neither bill changes your benefits today — but both are critical for FERS employees because Social Security is not optional for them: it's a foundational piece of their retirement. The greatest risk remains inaction. Both bills create the legislative path to prevent the automatic 2032 cuts that would directly reduce the retirement income of millions of current and future federal retirees.

Sources:
Government Executive
My Federal Retirement
Metals Retirement

08/19/2026