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Amid the ongoing global competition between U.S. and China, a Senate panel debated placing new restrictions and safeguards on companies that perform work for both governments in a hearing on Tuesday, while also criticizing agencies that have not yet implemented policies that Congress has already passed to address the issue. 

“It goes without saying that major U.S.-based technology service providers working for foreign adversaries while performing multibillion-dollar contracts for the U.S. government risks exposing vulnerabilities that can be exploited by our adversaries,” said Senate Homeland Security and Governmental Affairs Committee Chairman Gary Peters, D-Mich. “We can and must stop this.”

Peters pointed to 2023 cyber espionage campaigns by China that breached several government email accounts partly through a flaw in Microsoft’s cloud-computing environment. 

“This attack has raised serious concerns that China-backed hackers were able to steal this information because of [Microsoft’s] partnership with a Chinese entity, while they were providing services to the U.S. government at exactly the same time,” Peters said. 

He also brought up reports that consulting firm McKinsey & Co. advised Chinese state-run enterprises while also contracting with the Defense Department. 

That incident is one reason why Sen. Josh Hawley, R-Mo., introduced legislation to prohibit federal consulting contracts from going to an organization that provides consulting services to the governments of China, Russia or any country that the Secretary of State determines has repeatedly provided support for acts of international terrorism. 

The Senate Homeland Security and Governmental Affairs panel advanced Hawley’s measure back in May in a 10-1 vote. The lone “no” vote came from ranking member Rand Paul, R-Ky., who criticized the purpose of Tuesday’s hearing. 

“People worry that contractors who work for the Chinese government will be influenced by Chinese communism. It’s also that the reverse may be true — that American contractors contracting for the Chinese government may be bringing in influence from America and from American capitalism, as well,” he said. 

Bryan Riley of the National Taxpayers Union testified that Hawley’s bill represents a “slippery slope.” 

“This legislation, in particular, does not appear to require a demonstration of a specific national security threat resulting from covered transactions,” he said. “It is simply — you provide a service to the Chinese government, you get banned here.” 

Unimplemented laws 

The Government Accountability Office last week reported that the federal government has missed deadlines to put into effect three out of five laws or provisions regarding conflicts of interest in contracting: 

• The Defense Department has not followed a provision in the fiscal 2020 National Defense Authorization Act directing it to improve its procedures for assessing the risk of foreign ownership, control or influence for defense contracts and subcontracts that are more than $5 million. DOD officials told GAO that they are still in the earliest stages of the rulemaking. 
• DOD has not revised the Defense Federal Acquisition Regulation Supplement, in accordance with the fiscal 2024 NDAA, to prohibit the department from entering consulting contracts with vendors that provide such services to China and other certain foreign entities, unless the company maintains a conflict of interest mitigation plan that can be audited or a waiver is issued. The Defense Acquisition Regulations Council is currently working on an interim rule to promulgate the requirement. 
• The Federal Acquisition Regulatory Council has not implemented requirements in a 2022 law to update the Federal Acquisition Regulation with definitions, guidance and examples for contractor relationships with foreign entities that could cause conflicts of interest involving undue influence. Officials from the Office of Federal Procurement Policy, the administrator of which chairs FARC, said to investigators that the update is “complex and has required more time than normal to address.” 

Regarding the 2022 law, Peters, who sponsored the legislation, during Tuesday’s hearing criticized FARC for delaying implementation of the measure’s requirements. Jessica Tillipman, the associate dean for Government Procurement Law Studies at George Washington University, testified that, until the law is implemented, agencies will continue to use “uneven” practices for gauging contractor conflicts of interest. 

“[E]ach agency is basically left on their own to come up with their own approach to organizational conflicts of interest, which has led to severe inconsistencies among agency approaches,” she said. “Moreover, given the failure of [FARC] to update the FAR in several decades, we have outdated definitions and guidance that have not appropriately captured the many risks that continue to grow and create more conflicts of interest ranging from the security concerns we’re talking about here to commercial conflicts of interest to even the risks associated with emerging technology.”

DOD and OMB agreed with GAO recommendations to set milestones in order to carry out the unimplemented laws in as timely a manner as possible, with the watchdog stressing the need for expediency in their action. 

“Without DOD and the Office of Management and Budget’s [OFPP] establishing milestones for completing the necessary and legally required steps to ensure these laws are implemented as expeditiously as possible, acquisition officials will continue to lack the knowledge that could help protect U.S. national security when awarding contracts to consultants,” the authors of the GAO report wrote. 

With respect to the two contracting conflict of interest laws that have been implemented, government officials told GAO that they are not aware of any foreign influence risks that have been identified as a result of their applications.  

DOD enacted a provision in the fiscal 2022 NDAA requiring contractors to disclose whether they have employees who will work in China on contracts worth more than $5 million, and agencies like DOD and the Homeland Security Department have implemented a 2022 law mandating a risk-based approach when assessing small businesses seeking certain research and technology awards. 

Federal agencies between fiscal years 2019 and 2023 spent more than $500 billion on contracts for consulting services. DOD and the Homeland Security Department accounted for more than half of that amount.

Federal employees and retirees will pay an average of 13.5% for more on their health care premiums in 2025, a figure that is nearly double last year’s increase and marks the largest price hike in recent memory.

The government’s share of Federal Employees Health Benefits Program premiums will increase by an average of 10.01%, bringing the overall premium increase to 11.2%. In 2024, civilian federal employees were estimated to pay an average of 7.7.% more on premiums than the previous year, a slight decrease from the 8.7% rate hike in 2023, the largest the program had seen in a decade.

On average, federal workers enrolled in “self-only” plans will pay an additional $16.24 per biweekly pay period, while feds in “self plus one” insurance plans will pay $33.73 more per pay period. Employees enrolled in family coverage will pay an average of $26.10 more per pay period next year.

Under the Federal Employees Dental and Vision Insurance Program, the average premium for dental plans will increase by 2.97%, while vision plans will increase by an average of 0.87%.

2025 marks the first year of the Postal Service Health Benefits Program, which replaces the U.S. Postal Service’s previous health insurance offerings—as well as the mandate to prefund future retirees’ health benefits. As part of the shift to the new program, USPS employees will see their portions of premiums increase by an average of 11.1% next year, while the government’s portion will increase by 5.1% on average.

On a biweekly pay period basis, Postal Service workers enrolled in “self-only” plans will see their premiums increase by $10.04 in 2025, while those in “self plus one” plans will increase $29.93 on average per pay period. USPS employees enrolled in family insurance coverage will see their premiums increase by $30.68 on average next year.

The FEHBP and PSHBP’s annual open season, in which federal and postal employees can choose from a variety of regional and national insurance carriers and coverage plans, will run from Nov. 11 through Dec. 9. Among the drivers of this year’s premium increases are price increases from both providers and suppliers, increased use of some prescription drugs and increased behavioral health spending.

OPM and the White House on Wednesday announced that beginning next year, multiple national—and often several regional—FEHBP and PSHBP insurance carriers offer comprehensive IVF coverage to the tune of $25,000 or more. Also new in 2025 are requirements that all FEHB carriers cover at least GLP-1 class anti-obesity drug, such as Ozempic or Wegovy, for weight loss treatments, alongside two additional oral anti-obesity drugs. Carriers must also offer “comprehensive behavioral therapy,” including diet and exercise regimens, to those prescribed those drugs.

Wednesday’s announcement that OPM had negotiated expanded fertility coverage came as welcome news to federal employee groups and Democrats in Congress, who have been lobbying for expanded access to IVF after the Alabama Supreme Court briefly banned the treatment last spring.

“I applaud the Biden-Harris administration for taking this decisive action that I’ve called for to ensure all federal employees have access to IVF coverage—because everyone deserves the ability to access the fertility treatment they need to build their families, no matter where they live,” said Sen. Tammy Duckworth, D-Ill. “While this is welcome news, any future president could reverse this decision—so it’s critical we permanently protect and expand access to IVF nationwide and ensure no patient or doctor is criminalized simply for trying to start or grow their family.”

“In 2025, every FEHB enrollee, regardless of where they live and work, will be able to choose from multiple nationwide plans that offer comprehensive IVF coverage,” said Rep. Gerry Connolly, D-Va. “Additionally, every FEHB plan will be required to cover the prescription drugs required for three cycles of IVF annually, ensuring every enrollee in the country is able to choose a plan with fertility coverage. Providing federal employees with options to start and grow their families will in turn help the government recruit and retain the federal workforce of the future.”

Stacey Young, president of the Department of Justice Gender Equality Network, an employee association made up of nearly 2,000 employees at the Justice Department that has been on the forefront of lobbying OPM to require additional fertility coverage from insurers, said 2025’s additions will help retain a highly qualified and diverse workforce.

“President Biden, Vice President Harris, and OPM have again shown their commitment to federal employees’ reproductive healthcare needs,” she said. “Many DOJ GEN members, like countless workers across the federal government, have endured hardships without adequate IVF coverage. We expect that the expansion of access in 2025 will provide many more of our nation’s public servants with the ability to grow their families, and to do so without extreme financial struggles.”

But the rate increase is a bitter pill to swallow for other employee groups, particularly given the 2% average pay raise feds are slated to receive in January.

“This is the highest health insurance premium increase in more than two decades and will stretch employees’ paychecks beyond what they can afford,” said Doreen Greenwald, national president of the National Treasury Employees Union. “I call on President Biden and Congress to take immediate action on providing federal employees with an average 7.4% increase as called for by the FAIR Act.”

William Shackelford, national president of the National Active and Retired Federal Employees Association, urged federal employees and retirees to look closely at their coverage options during this year’s open season.

“These increases are unwelcome news that will no doubt cause sticker shock for federal and postal employees and retirees across the country,” he said. “But that sticker price may not be what you pay if you compare plans and shop for a more affordable alternative. All FEHB and PSHB plans offer comprehensive coverage, so it’s difficult to make a bad choice. But you can leave money on the table if you don’t compare costs and options.”

Download the Best Dates to Retire Calendar

It’s finally here! You are old enough and have enough service to retire. You have also determined that you can afford to retire! Now, all that is left to determine is the best date to retire. This is item #2 in Section B of the retirement application. All you have to do is insert your date of final separation… also known as your retirement date! 

• SF 3107 Application for Immediate Retirement (FERS) 

• SF 2801 Application for Immediate Retirement (CSRS)

Voluntary (CSRS, CSRS Offset, and FERS) retirement benefits commence the first day of the month after you separate from service if you have met the age and service requirements.  Of course, the last day of each month is seldom at the end of the week, or the end of a leave period for that matter, but regardless of which day of the week the last day of the month falls on, you will receive credit for each day through close of business of the day you make your retirement effective (even if it is a holiday).   

Example: James is planning to retire on Sat., May 31, 2026 (or Fri., May 30, 2026), after 24 years of service at age 60. This is the end of leave period 10. Although James will reach his 60th birthday on May 14, he will wait to retire until the last day of May so that he will receive his salary through May 31. His retirement won’t commence until June 1 regardless of whether he retires on May 14 or May 31. James will be paid his full biweekly salary for leave period 10 and he will accrue his final leave accrual for this period (8 hours of annual leave and 4 hours of sick leave). His first monthly retirement benefit payment will be for the month of June with the payment due on July 1.   

Here is a calendar to help you plan your best date for 2025 retirement.