In this episode of The FED Weekly, we cover the critical challenges facing federal employees and retirees for the week of October 12-18, 2025. Key topics include the deepening financial crisis from the ongoing government shutdown, with hundreds of thousands missing paychecks and facing uncertainty over back pay. Military pay was protected through an executive order, heightening workforce tensions. The Office of Personnel Management (OPM) announced a sharp 12.3% increase in 2026 Federal Employees Health Benefits premiums and the exit of several health plans, forcing many to switch coverage under financial stress. The shutdown delayed the 2026 COLA announcement, impacting retirees’ planning, and highlighted structural disadvantages for FERS annuitants. OPM faces a massive retirement processing backlog, exacerbated by record retirements and administrative furloughs. New layoffs targeted at specific agencies and a sweeping executive order tightened political control over federal hiring. Several bills to protect affected workers and retirees were discussed, including relief for TSP participants and efforts to ban RIFs during shutdowns. The episode emphasizes the importance of staying informed amid ongoing instability in pay, benefits, and job security.