Congress yesterday showed it can get something done. Although the fiscal year started two months ago, House and Senate negotiators reached a final compromise on a Defense Authorization Bill. But Congress still hasn't passed, and therefore the president hasn't signed, an appropriations bill. So where does that leave DoD in reality?

More federal employees retire at the end of the year than at any other time. For this reason alone, the Office of Personnel Management has put the proposed rules to implement phased retirement on the fast track. John Berry, OPM director, tells executive editor Jason Miller about the new approach the agency is taking to develop the new phased retirement rules.

Recent storms and floods have not shown a massive movement to federal telework. In fact, the majority of federal employees are uncertain what their agency telework policies actually are, or whether they are authorized to telework. But that will change, according to one of the authors of the Telework Enhancement Act. Rep. John Sarbanes (D-Md.) told us what he thought were the main benefits of the law.

When Congress approved a phase retirement approach for federal employees, it was part of an effort by a few lawmakers to create a more flexible workplace. The Office of Personnel Management is expected to release the phased retirement proposed regulations in early 2013. Rep. Gerry Connolly (D-Va.) represents Northern Virginia. He tells executive editor Jason Miller why he thinks workplace flexibility, including the idea of banking leave, is so important to attracting and retaining employees.

President Obama may be with us for another four years, but many in his cabinet will not. Vivian Riefberg is a leader of the public sector practice in the Americas at McKinsey and Company. She thinks this next inauguration is also a major transition, perhaps as big as if someone else had been elected.

President Barack Obama and House Speaker John Boehner may be closing in on a deal to avoid the fiscal cliff. It's one sure to make federal retirees frown. The White House's new proposal includes a measure that could reduce future cost-of-living adjustments for federal and military retirees — and anyone who gets Social Security. Payments could shrink by 0.3 percent each year. Things are far from certain. The White House won't describe this proposal as the president's final offer.