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Did the 2025 budget law switch your pension to a High-5 or end the FERS Supplement? No. Here's what actually became law, where it reaches you this Open Season and at tax time, and the rumors that never passed.
Quick facts: The House passed H.R. 1 with FERS cuts in May 2025. The Senate version left them out, and the bill was signed July 4, 2025 as P.L. 119-21. Proposed in the House, then dropped: a High-5 pension (5 years instead of 3), eliminating the FERS Supplement for future retirees, 4.4% FERS contributions for most employees, and an "at-will" election where employees would pay 5% more to keep their protections. What hits you this Open Season: Section 90101 requires proof to add a family member to FEHB, starting Nov 9, 2026. Tax changes: a $6,000 senior deduction for people 65+ (2025 to 2028), an overtime deduction of up to $12,500 ($25,000 joint), a $7,500 dependent care FSA limit from 2026, permanent 2017 tax brackets, a $40,000 SALT cap (up from $10,000), and a $31,500 joint standard deduction for 2025. Never passed: no tax on Social Security (a senior deduction passed instead), and there's no change to retiree annuities or COLAs. To check a rumor, look for "Became Public Law" on Congress.gov.
Educational only, not tax, investment, or legal advice. Haws Federal Advisors | HawsFederalAdvisors.com
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