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When Katherine Ann Reniers purchased a home in Rockville, Maryland, two years ago, she believed she had a clear path to a stable financial future. Reniers, a 53-year-old mother of two, was on track to complete two decades of service in the federal government by November 2025. This milestone would make her eligible for a pension that would yield nearly $6,000 a month, covering health insurance and ensuring a comfortable retirement, as outlined in documents reviewed by Business Insider. Each additional year she worked beyond her 20-year mark would increase her monthly retirement payments.

However, her carefully laid plans were dramatically altered in March when she received notification emails indicating that her position at the U.S. Agency for International Development (USAID) would be eliminated on July 1, following significant layoffs initiated by the White House's Office of Management and Budget, commonly referred to as DOGE. This unexpected termination came just five months shy of her 20-year anniversary, leaving her without the full retirement benefits she had anticipated.

The implications of this decision are profound, as Reniers will not be able to access her full federal pension until she reaches the age of 62. Moreover, due to the federal regulations governing foreign service retirement, her monthly pension payments are now projected to be approximately $3,000 less than her initial estimates. Ive been panicking, Reniers lamented. I realized it wasnt enough to cover my monthly mortgage and medical bills.

Reniers is far from alone in her predicament; she is one of tens of thousands of government employees whose lives have been disrupted by the DOGE's mandate to downsize federal agencies and reduce expenditures. This strategic shift is generating significant economic uncertainty for many Americans, particularly those nearing retirement age.

An official from the administration reassured Business Insider that the State Department is committed to offering additional resources and benefits to ensure the safety and security of USAID employees transitioning from service, although specifics on these resources remain unclear.

Reniers had initially believed herself to be an 'essential' employee. In January, shortly after DOGE's arrival at USAID, chaos erupted within the agency. Employees received an email dubbed the fork in the road which offered those willing to resign the opportunity to leave with full pay and benefits until September. During this tumultuous period, workers were temporarily barred from accessing computer systems and instructed to remain at home while the Washington, D.C. headquarters was shut down.

In February, Reniers was informed by leadership that she was considered an essential employee. As the division chief for Europe at USAID's Bureau of Humanitarian Assistance, she oversaw crucial programs providing food, water, sanitation, shelter, and emergency healthcare to those in crisis in regions like Ukraine and Turkey. This position led her to believe she was insulated from the widespread layoffs impacting her colleagues.

So I did not take the fork, and now Im shooting myself in the foot, Reniers reflected ruefully. On February 24, she received an email stating she was being placed on administrative leave, with a subordinate taking over her responsibilities. By March 27, she learned that her position was being officially abolished.

In an attempt to ease the transition, another email encouraged employees to volunteer for critical work as the agency underwent significant restructuring and shifted responsibilities to the State Department. Reniers plans to return for a few weeks to support her exhausted colleagues, despite her own situation.

On March 28, Secretary of State Marco Rubio notified Congress of the reorganization, revealing that approximately 83% of USAID's programs had been cut as part of these budgetary adjustments.

In light of her new reality, Reniers has been experiencing panic attacks as she scrambles to formulate a financial backup plan. With thoughts of retirement still four years away, when her son will graduate from high school, the abrupt job loss has thrown her into uncertainty. Reniers calculates that her pension will now be roughly half of what she would have qualified for had she reached the 20-year mark in service. For foreign service personnel with less than two decades, the pension formula is based on the employee's highest annual salary, multiplied by 20, multiplied by 1%, and then divided by 12. Reniers, who earned an annual salary of $177,200, now expects her monthly pension to fall just under $3,000 based on this calculation.

Had she reached the two-decade milestone, the 1% multiplier would have risen to 1.7%. This increased rate, combined with a supplemental annuity, would have allowed her to collect a pension amounting to around $6,000 per montheffectively doubling her anticipated payments.

Additionally, while she could have retired at any point after her 20th anniversary with full pension benefits, she must now wait until age 62 to become eligible for the reduced pension. Fortunately, Reniers will receive a severance package equivalent to one years salary, and she is also considering selling an apartment she owns in Belgium to create a financial buffer for her monthly expenses.

Im lucky I have that, so I can make sure to keep my home in Maryland, she expressed. But how do I find a job with a similar salary when Im 53 and dealing with a disability?

At age 59, she will be able to start receiving payments from a separate federal retirement account known as the Thrift Savings Plan without facing penalties, and at 62, both her pension and Social Security benefits will begin.

Currently, Reniers primary concern is securing affordable health insurance. She has been diagnosed with rheumatoid arthritis and requires biweekly injections of medication to manage her symptoms, including inflammation and joint pain. While she will retain federal health insurance until the end of July, she anticipates needing to find a new policy for her family, which is likely to be more costly.

Im so angry right now, Reniers said, adding that engaging in protests and communicating with lawmakers on Capitol Hill has provided her some relief from the chaos. Thats what I want to spend my time on.

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