The Office of Personnel Management (OPM) has officially expanded the list of federal employees eligible for the targeted 3.8% pay raise in 2026, widening the gap between “mission-critical” law enforcement roles and the rest of the federal workforce (who received 1.0%). As reported by FEDweek, this higher increase is now retroactive to January 11, 2026, for newly added categories at DHS, Commerce, and the IRS.
Even more significant is the signal that Air Traffic Controllers (ATC) may be next in line. With a legislative provision currently pending in Congress, the FAA administrator could soon have the discretion to grant this same 3.8% hike to controllers—a move driven by undeniable staffing data.
📋 The Confirmed “3.8% Club”
While the general workforce settles for a 1% adjustment, OPM is using its “special rate” authority to boost pay for high-attrition roles. The latest guidance confirms that the following groups will now see the higher 3.8% increase in their paychecks, retroactive to the first full pay period of the year:
- DHS:
- USCIS: GS-1811 Criminal Investigators.
- Coast Guard: GS-1811 Criminal Investigators.
- FLETC: GS-1811 Criminal Investigators and qualified GS-0080 Physical Security Specialists.
- IRS: GS/GL-1811 Special Agents (across all grades).
- Department of Commerce:
- Bureau of Industry and Security: GS-1811 Criminal Investigators/Special Agents.
- Office of Security: GS-0083 Police Officers.
Why It Matters: This is not a bonus; it is a permanent increase to basic pay. This means it counts toward your “High-3” average salary calculation for retirement purposes. A 2.8% differential over three years can significantly boost your lifetime pension annuity.
📉 Sound Data: Why Controllers Are Likely Next
The push to include Air Traffic Controllers in this raise isn’t just about fairness; it’s about a critical operational failure. The data suggests the FAA has no choice but to use pay as a retention tool.
1. The 40% Deficit: According to recent staffing reports, over 40% of FAA terminal facilities are currently understaffed. This creates a safety risk and forces mandatory overtime that drives burnout.
2. The Hiring Math Doesn’t Add Up:
- The Goal: The FAA aims to hire roughly 1,800–2,000 new controllers annually.
- The Reality: Attrition is eroding these gains. In FY 2024, the agency lost nearly 1,400 controllers to retirement, resignation, and training failure.
- The Gap: With a net gain of only a few hundred controllers per year, the agency cannot keep pace with the 10% increase in flight volume projected over the next decade.
3. The “Shutdown” Strain: The pending legislation links the pay raise to “workforce scheduling and staffing utilization.” Essentially, Congress is offering the FAA a tool: Fix the staffing crisis, and you can pay your people more. With the threat of funding lapses (like the one looming in late January), retention incentives become the only leverage the agency has to keep talent from walking out the door.
🛡️ Maximizing the “Special Rate” in Your Retirement
If you are in one of these “3.8%” categories—or if you are a controller hoping to join them—you need to understand how this impacts your financial future.
Internal Benefit Advisors helps you capture the full value of these specialized pay adjustments.
How We Help You Leverage the Raise:
- High-3 Recalculation: We help you project how this retroactive 3.8% increase changes your High-3. If you were planning to retire in 2026, it might pay to wait a few months to let this higher rate bake into your average.
- Special Provision Retirement Audit: For LEOs and ATCs with mandatory retirement ages (57 or 56), we ensure your “special provision” annuity calculation (1.7% for the first 20 years) accurately reflects these new special rate tables.
- Retroactive Pay Management: When the retroactive lump sum arrives (dating back to Jan 11), we help you decide whether to direct it to your TSP to maximize the match or use it for debt reduction.
The pay gap is widening. Make sure your retirement plan bridges it.
Contact Internal Benefit Advisors today for a specialized LEO/ATC benefits review.
References
- FEDweek. “Higher Raise Extended to More Law Enforcement Categories; Controllers Might Benefit, Too.” January 28, 2026.
- Office of Personnel Management (OPM). CPM 2026-02: Extension of Special Rate Coverage for Law Enforcement.
- Government Accountability Office (GAO). Air Traffic Control: FAA Needs to better Address Staffing Shortages.
- Internal Benefit Advisors. Retrieved from https://internalbenefitadvisors.com
