This bill lets certain Foreign Service employees retire early with a pension when their agency is going through major workforce changes, like reorganization, downsizing, or when jobs become surplus. To qualify, a person must be at least 43 years old, have at least 15 years of service, not already eligible for another Foreign Service pension, and leave during a period approved by the Office of Personnel Management. With the agency’s consent, they can retire and receive a pension calculated under the standard federal formula.

It covers people who left (voluntarily or involuntarily) starting January 20, 2025, up to the date the bill becomes law, and those who choose to leave after it becomes law. If the Foreign Service retirement fund doesn’t have enough money, the U.S. Treasury can pay the benefits. Congress also says it expects people who use this option to keep their federal health insurance if they had it when they left.

• Who is affected: Members of the Foreign Service (and agencies that use the same personnel system) who are 43+ with 15+ years of service and not already getting another Foreign Service pension.
• What changes: Allows early retirement with a pension during approved periods of workforce cuts or restructuring, with the agency’s consent; pension uses the standard federal calculation; health insurance is expected to continue for those already enrolled.
• When: Applies to separations from January 20, 2025, through the date it becomes law, and to voluntary separations after it becomes law; benefits can be covered by the Treasury if the dedicated fund runs short.