Understanding Trump’s Schedule F Proposal: What It Means for Federal Government Employees and Retirees

Key Elements of Schedule F

1. Reclassification of Positions: The proposal allows the president to reclassify certain career positions within the federal government, particularly those in policy-making, leadership, or confidential roles, into Schedule F. This would give the administration greater control over staffing decisions in these areas.
2. Reduced Protections for Employees: Federal workers under Schedule F would lose key protections typically available under the Civil Service Reform Act, such as job security and procedural rights for promotion and dismissal. This makes it easier for the president to remove these employees, as they would no longer be subject to the same merit-based procedures that protect most federal workers.
3. Increased Political Appointees: By reclassifying certain jobs, Schedule F could lead to an increase in the number of politically appointed staff within the government. These employees would serve at the discretion of the president, rather than being hired based on qualifications and experience alone.
4. Impact on Labor Unions and Advocacy: Many labor unions and advocates for federal employees have strongly opposed Schedule F, fearing it could erode protections for workers and lead to an erosion of the non-partisan nature of the civil service. Some have argued that Schedule F could be used to push out employees with differing political views, leading to a less diverse and more politically-driven workforce.

What Does Schedule F Mean for Federal Employees?

For current federal employees, the most immediate concern is job security. If Schedule F were to be reinstated, employees in positions targeted for reclassification could face layoffs or be replaced by new political appointees, potentially creating instability within agencies. Positions that might be reclassified under Schedule F are typically those involved in policy development or high-level administrative functions.

However, the proposal’s impact extends beyond job security. For those nearing retirement, the uncertainty surrounding the future of federal employment could influence decisions related to pension benefits, retirement savings, and overall career planning. As Schedule F would likely create a more politically fluid workforce, employees may find themselves reconsidering their long-term career path in the federal government.

What Does Schedule F Mean for Federal Retirees?

For retirees, the direct effects of Schedule F might seem less immediate, but there are still key considerations. The shift to a more politically-driven civil service could impact the long-term stability of the pension and benefits system. If certain positions are politicized or removed, it could lead to a reduction in overall government efficiency, potentially impacting the funding and operation of the federal retirement system (FERS) and the Civil Service Retirement System (CSRS).

Moreover, retirees who are receiving benefits from agencies where positions have been affected by Schedule F may face indirect consequences. For example, shifts in workforce composition could affect the administration of retirement benefits or the overall financial health of agencies tasked with managing retirement systems.

So What Can We Do About It? 

At STWS we have the unique perspective of working closely with Feds for nearly four decades to help them achieve their goal. Over this time, we have seen many changes and administrations vowing to bring around the restructure and reduction of government. From this, we have learned that typically the fears are worse than the actual outcomes.

Fear is fine—but don’t freeze.

Now is the time to ask questions and learn.  There are many opinions as to how Schedule F might ultimately be implemented and how many Feds could be affected. There are likely legal challenges ahead of full implementation. The most probably net result is that it will take some time.  

Use that time.

Follow reliable news sources. We will be of course following this and publishing as new updates arise. We love our friends at the Federal News Network, as well as Government Executive. Keep an ear to the ground and learn the procedures that will be followed for Schedule F actions as they are published.

Know where you are in your retirement preparation process. Read up on early, postponed, and deferred retirement options. Take advantage of our free webinars, articles and podcasts on your benefits.

Follow best practices as if you were preparing for a shutdown.  Review your obligations and budget. Beef up your emergency fund.

Most importantly, take care of your mental state. Fear of the unknown can be excruciating, but the simple truth is that man’s worst fears seldom come to pass. Make sure you are making time for self-care during these periods of stressful uncertainty.

The reality is that Trump’s Schedule F proposal could drastically change the landscape of federal employment, with significant implications for both current workers and retirees. While it is unclear what the future holds, it’s important for federal employees and retirees to stay informed and be proactive in their financial planning. Whether it’s adjusting retirement savings, diversifying investments, or preparing for potential shifts in job security, staying ahead of potential changes will ensure that you’re best prepared for whatever the future may hold.

And remember: you are not alone.  We are honored to navigate these challenges with you. 

Stay tuned for more information.

**Written by Katelyn Murray, CFP® and Dan Sipe. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Katelyn Murray and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional.