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Dailyfed Staff

May 2, 2025

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DoD DRP Concerns

The Department of Defense’s rollout of the Deferred Resignation Program 2.0 has been criticized for inadequate communication. Some civilian employees were still waiting for separation agreements and approvals as the May 1, 2025, administrative leave deadline approached, creating uncertainty and frustration. Clauses in the DRP contract, including one that waives employees’ rights to pursue any legal action against the DoD related to their employment or the DRP, including disputes over payouts like annual leave, have raised concerns among employees and legal experts.

Most View Feds Favorably

A new survey by the Partnership for Public Service showed that the majority of respondents, 55%, have a favorable opinion of federal employees. This number has ticked up slightly since the prior survey. Democrats are more likely to have a favorable opinion of federal employees (73%) than Republicans and Independents (49% and 48%, respectively). Changes to the federal workplace are being closely followed by 78% of those surveyed, and 73% are keeping an eye on the actions of DOGE. Nearly one-third (29%) have experienced the impacts of federal workplace reductions, 20% through a personal acquaintance, and 9% directly.

OPM Gives Guidance on the Termination of Probationary Employees

Under new rules established by Executive Order and effective immediately, agencies no longer need to justify terminations with detailed explanations of performance or conduct issues. Previously required notices about “inadequacies” or pre-appointment conditions are eliminated, allowing terminations for reasons like operational needs or agency goals. Agencies now assess probationary employees based on four factors, at their “sole and exclusive discretion”:

  • Performance and conduct.
  • Agency needs and interests.
  • Alignment with organizational goals.
  • Efficiency of the federal service.

The Executive Order also strips the Merit Systems Protection Board (MSPB) of jurisdiction over appeals from terminated probationary employees.

TSP Experiences Dramatic Swings in April

A volatile stock market resulted in the TSP taking a nosedive in early April before rebounding at the end of the month. The F and I Funds managed to claw their way back into positive territory while the C and S Funds just missed the mark. TSP returns in April:

G Fund: 0.35% (1.48% YTD)
F Fund: 0.39% (3.18% YTD)
C Fund: -0.68% (-4.93% YTD)
S Fund: -0.78% (-9.65% YTD)
I Fund: 4.26% (9.00% YTD)

Not sure your TSP allocations align with your risk tolerance and retirement goals? Reach out to a Federal Retirement Consultant (FRC®) who can offer expert insight.

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