With President Trump’s signature on July 4, 2025, the One Big Beautiful Bill Act (OBBBA) became law. Federal employees should be relieved to know that many of the detrimental proposals to federal employee benefits did not make it into the final bill.
As of now, the Retiree Annuity Supplement will not be eliminated or modified. Pensions will continue to be calculated using the average high-3 salary instead of the proposed high-5. Lastly, increased withdrawals from your paycheck for retirement contributions did not make the cut.
