Federal employee legislation 2027 is a status check, not a forecast. As of October 28, 2026, the Equal COLA Act and the FAIR Act pay bills remain in committee, and the President's alternative pay plan holds 2027 General Schedule base and locality pay at 2026 rates. A new House bill would also require OPM to provide and correct records for people who left federal service in 2025 or later.
Federal clients hear about these bills from coworkers, unions and the news, and they ask advisors what it means for them. The most valuable answer you can give is an accurate one: what is law today, what has only been proposed, and where to verify it.
Why Federal Employee Legislation 2027 Matters to Advisors
Planning has to be built on current law. A client who assumes a bill will pass and makes a retirement decision on that basis is taking a risk they may not realize. At the same time, ignoring proposed changes entirely leaves you unprepared when a client asks.
A simple rule works well in client meetings. Plan on current law, monitor proposals, and update the plan only when something is enacted. Each bill below includes its status as of October 28, 2026, taken from congress.gov and GovInfo.
The Equal COLA Act (H.R. 491 and S. 624)
What it would do: Give FERS retirees the same cost-of-living adjustment as CSRS retirees, ending the "diet COLA." For 2027, CSRS annuities increase 3.6% and FERS annuities increase 2.6%.
Status:
- H.R. 491 was introduced January 16, 2025 by Rep. Gerald Connolly and referred to the House Committee on Oversight and Government Reform. Rep. James Walkinshaw became the first sponsor on September 16, 2025. It has 90 cosponsors.
- S. 624 was introduced February 18, 2025 by Sen. Alex Padilla and referred to the Senate Committee on Homeland Security and Governmental Affairs. It has 20 cosponsors.
Neither bill has passed either chamber.
What to tell clients: FERS COLAs for 2027 follow current law, and income projections should use the current FERS formula. The FERS formula pays the full CPI-W increase when it is under 2%, 2% when it is between 2% and 3%, and the CPI-W increase minus one point when it is above 3%.
The FAIR Act (H.R. 7480 and S. 3823)
What it would do: As introduced, the Federal Adjustment of Income Rates Act would provide a 3.1% increase in statutory pay schedules and prevailing rate pay, plus a 1% increase in locality pay, for 2027. The bill's official title describes this as a 4.1% increase for federal employees.
Status: H.R. 7480 (Rep. Walkinshaw, 39 cosponsors) was referred to the House Committee on Oversight and Government Reform. S. 3823 (Sen. Brian Schatz, 12 cosponsors) was referred to the Senate Committee on Homeland Security and Governmental Affairs. Both were introduced February 10, 2026 and remain in committee.
The 2027 Alternative Pay Plan
The pay picture for 2027 is set by the President's alternative pay plan, not by a bill. In a letter to the Speaker of the House dated August 26, 2026, published as House Document 119-189, the President determined that "for 2027, base pay and locality pay for civilian Federal employees will not change from the 2026 rates."
Key points from the document:
2027 pay plan highlights
0%
GS base and locality pay change for 2027
3.8%
Increase for certain law enforcement personnel, via OPM
5% to 7%
Military basic pay increase, by grade
- Without the alternative plan, the letter says locality pay would have risen by an average of 20.6% under current law, along with a 3.1% across-the-board General Schedule increase.
- OPM is raising 2027 pay for certain law enforcement personnel by 3.8% through special salary rates, a separate process from the alternative plan. OPM publishes special rate details on its website.
- Military basic pay rises 7.0% for grades E1 to E5, 6.0% for E6 to O3, and 5.0% for O4 and above, subject to statutory caps.
Why it matters for planning: Pay drives the high-3 average salary used to compute the FERS annuity. For clients retiring in the next few years, a year with no GS raise affects both the high-3 and how much they can save. Use the actual 2026 rates in 2027 projections unless and until a different adjustment is enacted.
The Federal Employee Records Relief Act (H.R. 10718)
What it would do: This new bill responds to a practical problem. People who left federal service need accurate records to apply for retirement and benefits. As introduced, H.R. 10718 would:
- Apply to people who separated from federal employment for any reason on or after January 20, 2025, other than members of the uniformed services. Annuitants are included.
- Require OPM to provide employment records, including SF-50 personnel actions.
- Require OPM to administratively correct errors in those records.
- Require OPM to provide information on benefits coordination, including temporary continuation of FEHB coverage under 5 U.S.C. 8905a.
- Accept requests for four years after enactment.
The bill specifies that the relief is administrative only. It does not require any agency to recharacterize a separation.
Status: Introduced October 1, 2026 by Rep. Walkinshaw with seven cosponsors and referred to the House Committee on Oversight and Government Reform. No further action as of October 28, 2026.
What to tell clients: Whether or not this bill moves, the underlying advice holds. Clients who have separated or plan to separate should get copies of their SF-50s and other personnel records and review them for errors early. Record problems can delay retirement processing.
The Federal Retirement Fairness Act (H.R. 1522)
One more bill comes up often with clients who began federal careers in temporary positions. As introduced, H.R. 1522 would allow civilian service in a temporary position performed after December 31, 1988 to be creditable under FERS, with a deposit. It was introduced February 24, 2025, has 157 cosponsors, and remains in the House Committee on Oversight and Government Reform. Rep. Emily Randall became the first sponsor on July 22, 2025.
How to Talk About Pending Bills With Clients
A few habits keep these conversations accurate and useful:
- Separate law from proposal. Say clearly which rules are in effect and which have only been introduced.
- Give the date. Bill status changes. "As of today, it remains in committee" is accurate. "It's going to pass" is a guess.
- Cite primary sources. Congress.gov shows each bill's text, sponsors, cosponsors and actions. GovInfo publishes official bill text and congressional documents.
- Don't change the plan for a proposal. You can show a "what if" scenario, but base decisions on current law.
- Follow up when something changes. If a bill is enacted, that's a reason to reach out to every affected client.
Advisors who handle legislation this way become the trusted, calm voice in a noisy news cycle. That credibility carries over to every other part of the relationship.
Build the Expertise Behind the Answers
Explaining legislation well requires knowing how the underlying benefits work. Clients asking about the Equal COLA Act need someone who understands the FERS COLA formula. Clients asking about pay need someone who understands the high-3. For a closer look at the size of this market, read the trillion-dollar federal market and our overview of the federal market opportunity.
When you're ready to go deeper, the FedEd Academy™ program covers FERS, CSRS, FEHB, FEGLI, TSP and survivor benefits. FedEd Academy is an independent education provider and isn't affiliated with any government agency.
The bills will keep coming. Your value is the same every time: tell clients exactly where things stand, plan on current law, and be the first to call when something actually changes.
Frequently asked questions
Has the Equal COLA Act passed?
No. As of October 28, 2026, H.R. 491 remains in the House Committee on Oversight and Government Reform and S. 624 remains in the Senate Committee on Homeland Security and Governmental Affairs. Neither has passed either chamber.
Will federal employees get a raise in 2027?
Under the alternative pay plan the President transmitted to Congress on August 26, 2026, General Schedule base pay and locality pay will not change from 2026 rates in 2027. OPM is separately raising pay for certain law enforcement personnel by 3.8% through special rates. The FAIR Act would provide a larger raise, but it remains in committee.
What would the FAIR Act do?
As introduced, H.R. 7480 and S. 3823 would provide a 3.1% increase in statutory pay schedules and prevailing rate pay plus a 1% increase in locality pay for 2027, described as a 4.1% overall increase. Both bills were introduced on February 10, 2026 and remain in committee.
What is the Federal Employee Records Relief Act?
H.R. 10718, introduced October 1, 2026, would require OPM to provide employment records, correct administrative record errors and give benefits coordination information to people who separated from federal service on or after January 20, 2025. It has been referred to the House Committee on Oversight and Government Reform.
Where can clients check the status of federal bills?
Congress.gov is the official source for bill text, cosponsors and actions. GovInfo publishes official bill text and congressional documents.
