Executive Order Revokes Union Rights for Majority of Federal Employees

What It Means for Your Job Security, Benefits, and Retirement Plans

March 31, 2025

A new executive order has revoked collective bargaining rights for a large portion of the federal workforce, impacting employees across several key departments:

  • Agriculture

  • Defense

  • Health and Human Services

  • Justice

  • State

  • Veterans Affairs

This action affects approximately 67% of federal employees and 75% of unionized workers.

The administration says it’s part of a plan to bring the federal workforce under tighter executive control. But federal employee unions are pushing back, calling the move retaliatory and pledging to challenge it in court.

Why This Matters to You

This isn't just about union politics—it could directly affect your workplace protections, benefits, and financial future.

Here’s what to watch:

Contract Protections at Risk

  • Without union-negotiated contracts, policies around job security, performance evaluations, telework, and early retirement options could be changed unilaterally by agencies.

Potential Impact on Pay & Benefits

  • Unions have historically played a role in defending retirement formulas, cost-of-living adjustments (COLAs), health insurance contributions, and even TSP match protections. Weaker union influence could open the door to changes that may reduce long-term compensation or retirement readiness.

Morale and Stability

  • This kind of disruption can lead to lower morale, increased turnover, and uncertainty—especially concerning for those nearing retirement who depend on stable employment, high-three averages, and uninterrupted service years.

What You Can Do Now

Stay Alert: Monitor updates from your agency’s HR department and union representatives. Legal challenges are underway, but changes could move quickly in the interim.

Reassess Your Retirement Strategy: Now’s a smart time to review your TSP allocation, projected retirement date, and service years. Proactive planning can help protect your retirement goals in an evolving policy landscape.

Stay Engaged: If you're in a unionized role, stay in touch with your union for updates, legal support, and advocacy strategies. If you're not in a union, now may be a time to weigh the value of collective support in protecting long-term benefits.

Your Future Deserves Clarity—Not Chaos

This executive order may create uncertainty in the short term, but it also reinforces the importance of taking control of what you can manage: your financial decisions, your retirement readiness, and your long-term strategy.

No matter how policy winds shift in Washington, your financial peace of mind shouldn’t be left to chance.

We’ll continue to deliver timely updates, actionable insights, and expert guidance to help you stay prepared, protected, and empowered.