The Office of Personnel Management (OPM) has launched a “deferred resignation” program to optimize and modernize government operations. This bold move offers financial incentives to federal employees who voluntarily resign by February 6, 2025. The goal is to streamline workforce processes, reduce operational expenses, and adapt to the federal government’s evolving needs.
What Is the Deferred Resignation Program?
The deferred resignation program provides an attractive option for eligible full-time federal employees, excluding those in military service, immigration enforcement, U.S. Postal Service positions, and national security. Employees who accept the offer will stop working but continue receiving their salary and full benefits, including healthcare coverage, until September 30, 2025.
This financial cushion ensures a smooth transition for employees as they explore post-federal career opportunities, retirement options, or other endeavors.
Key Considerations Before Resigning
While the promise of continued pay and benefits can be tempting, federal employees must carefully evaluate their unique circumstances before participating in the program. Important factors to assess include:
- Retirement Eligibility: Will resigning early impact pension eligibility or benefit levels under the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS)?
- Healthcare Continuity: How will participation affect ongoing health insurance coverage through FEHB (Federal Employees Health Benefits)?
- Impact on Future Employment: What restrictions might exist for rejoining the federal workforce after accepting the offer?
- Financial Planning: How does this decision align with current savings strategies, including Thrift Savings Plan (TSP) contributions and investments?
Given the complexity of these considerations, the fast-approaching February 6, 2025 deadline may overwhelm many employees.
The Critical Role of Internal Benefit Advisors
The guidance of experts like Internal Benefit Advisors can be invaluable in navigating this intricate process. Specializing in federal employee benefits, Internal Benefit Advisors offers personalized consultations to help employees fully understand the implications of the deferred resignation program.
Their services include:
- Benefit Analysis: Assessing how the resignation offer may impact benefits such as TSP accounts, life insurance under FEGLI (Federal Employees’ Group Life Insurance), and annuities.
- Retirement Strategy: Crafting a comprehensive roadmap to align with the employee’s financial and retirement goals.
- Healthcare Guidance: Ensuring employees understand healthcare options post-resignation.
By providing tailored, data-driven advice, Internal Benefit Advisors empower federal employees to make confident decisions that secure their financial well-being.
Making an Informed Decision
The deferred resignation program is a rare opportunity for federal employees to make a life-changing career move while receiving continued financial support. However, the decision requires thoughtful consideration and strategic planning.
Seeking professional advice from experts like Internal Benefit Advisors can alleviate confusion and ensure that every decision is made with a clear understanding of its financial implications. Federal employees can confidently navigate this complex transition and position themselves for long-term success with proper guidance.
Reference
Fedweek. (n.d.). Government-Wide Buyouts: OPM Issues Q&A on New Deferred Resignation Program. Retrieved from https://www.fedweek.com
