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The federal workforce is currently in a state of uncertainty following an email from the Office of Personnel Management (OPM) that offered a “deferred resignation” option to employees. This unprecedented move has raised several questions and concerns, prompting a need for clarification regarding the directive.
What is known:
1. On January 27, the Return to Office Implementation Plan was released by the Office of Management and Budget alongside OPM. This memorandum aimed to provide agencies with guidance on the transition to in-person work as outlined in the presidential memo dated January 20, 2025, titled Return to In-Person Work.
2. The following day, federal workers received an email from OPM presenting a “deferred resignation” offer, with a deadline for acceptance set for February 6. Initially, many employees questioned the authenticity of the email, particularly given the title of the memo, Fork in the Road, which seemed unusual for an official government communication.
What is not known:
A number of uncertainties persist regarding this unusual directive. Here are critical aspects that require clarification before making any decisions that could have lasting consequences:
1. Will the deferred resignation be treated similarly to a Voluntary Early Retirement Authority (VERA)? The memo suggests that if an employee becomes eligible for either early or normal retirement prior to their resignation date, they maintain the right to elect for retirement at any time before resigning. Under a VERA, employees can opt for early retirement at age 50 with at least 20 years of service, or at any age with a minimum of 25 years of service. Participants benefit from immediate and unreduced retirement, and can continue receiving federal insurance coverage if they have met specific requirements prior to retirement.
2. Will salaries for those who accept the resignation be disbursed through September 30? According to the fact sheet on administrative leave, OPM does not oversee administrative leave policies—these decisions are left to individual agency heads. Past Comptroller General rulings indicate that such leave should generally be reserved for brief absences.
3. Will the salaries during the resignation period be subject to all standard payroll deductions, including FICA, Medicare, and retirement contributions for CSRS or FERS?
4. Will employees continue to accrue leave during this non-working period?
5. A significant question remains regarding how many employees will choose to accept this offer. Reports from Government Executive senior correspondents indicate that a consensus is forming among federal employee unions urging workers not to take the deal. Concerns include the legality of granting deferred resignations, uncertainty about whether resignations will be acknowledged, and doubts about the continuity of pay and benefits. With the looming influence of figures like Elon Musk in discussions surrounding mass resignations, employees are cautioned to carefully consider their options. Should a large number choose to resign or retire, there may not be sufficient personnel available in HR or OPM to process these transitions effectively.
What you can do now:
1. Stay informed by listening to guidance from your HR department in the coming days. The email indicated that once a resignation is submitted, agency HR will reach out to facilitate additional documentation, leaving employees uncertain about the potential requirements.
2. If you belong to a union or an advocacy group representing federal workers, remain engaged with their communications. If you are not a member, consider the benefits of joining one of the numerous organizations advocating for federal employees, such as the Federal Employee Education & Assistance Fund, American Federation of Government Employees, Blacks in Government, and the National Active and Retired Federal Employees Association.
3. Prepare for the best yet anticipate challenges. In light of possible unexpected retirement offers, it’s wise to consider what steps can be taken now to support your future career. Recently written columns provide valuable insights on how to prioritize and prepare for this scenario effectively.
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