The federal government is offering a historic deferred resignation program, giving eligible employees the opportunity to voluntarily resign in exchange for approximately eight months of pay. While this may seem like an attractive option for some, the legal and financial implications of resigning under this program are significant and should be carefully considered before making a decision.

At National Security Law Firm, we specialize in protecting federal employees from unfair treatment, wrongful termination, and politically motivated purges. If you’re a federal employee facing pressure to resign, this guide will help you understand:

  • Who is eligible for the deferred resignation program.
  • The risks and consequences of resigning.
  • Alternatives to resignation and legal rights you should know.

What is the Federal Employee Deferred Resignation Offer?

The Office of Personnel Management (OPM) recently announced a voluntary deferred resignation program, allowing eligible federal employees to resign in exchange for eight months’ salary. According to the memo:

✔️ The offer is available until February 6—a very short window to make a major career decision.
✔️ Employees who accept will retain pay and benefits until September 30, regardless of their workload.
✔️ The deferred resignation aims to reduce the size of the federal workforce as part of broader downsizing efforts.
✔️ Those who accept must send a resignation email from their government account, stating “Resign.”

While the offer may sound straightforward, it raises serious concerns about job security, federal service rights, and whether employees are being pressured to leave.

Who is Eligible for the Federal Deferred Resignation Program?

The memo does not provide clear eligibility criteria, making it uncertain which employees can or cannot participate. However, based on previous federal deferred resignation programs, the following factors may determine eligibility:

  • Length of federal service and tenure in a particular agency.
  • Whether the employee is in a targeted position for downsizing.
  • If the employee meets any retirement or early separation qualifications.
  • Whether the agency approves the resignation request.

Potential Red Flags in the Deferred Resignation Program

  • The rushed timeline (less than two weeks to decide) puts pressure on employees to act without fully considering their options.
  • The offer could disproportionately impact employees in key public service roles (e.g., VA doctors, law enforcement officers, and intelligence personnel).
  • Federal workers who refuse to resign may later face reclassification, removal, or political retaliation under the administration’s new workforce policies.

Given the lack of transparency, federal employees should consult an attorney before making a decision that could affect their career, benefits, and legal standing.

Legal and Financial Risks of Resigning

  1. Loss of Federal Employee Protections

Federal employees enjoy civil service protections that make it difficult to terminate them without due process. By resigning voluntarily, you waive these protections, making it harder to challenge a removal in the future.

  1. Retirement & Benefits Impact

✔️ Pension Loss: If you resign early, you may lose out on federal retirement benefits you would have otherwise earned.
✔️ Health Insurance: While some federal employees retain FEHB coverage, resigning may impact eligibility.
✔️ Thrift Savings Plan (TSP): Depending on years of service, you may lose agency contributions to your TSP.

If you are close to vesting in your pension or retirement benefits, resigning now could cost you thousands in lost income over time.

  1. Future Career Consequences

✔️ Reemployment Restrictions: Some employees who accept a deferred resignation may face restrictions on returning to federal employment for a set period.
✔️ Security Clearance Impact: If you hold a security clearance, resigning could complicate future job prospects in government contracting or defense-related industries.
✔️ Private Sector Transition: Many federal employees rely on government service protections—leaving voluntarily may impact future hiring eligibility and security.

  1. Political and Legal Risks

Given that this deferred resignation program is part of a broader federal downsizing effort, employees should not feel pressured to resign for political reasons. If you believe you are being targeted, consult an attorney before making any career-altering decisions.

Alternatives to Resigning: What Federal Employees Can Do

If you are unsure about resigning, there are alternatives that may allow you to keep your job and protect your rights:

  1. Know Your Rights & Refuse to Resign

The decision to resign is entirely voluntary—you cannot be forced to accept the deferred resignation. Federal employees have legal protections under:

  • The Civil Service Reform Act (CSRA), which prohibits politically motivated terminations.
  • Whistleblower Protection Act, which protects employees speaking out against misconduct.
  1. File a Complaint if You Face Retaliation

If you feel pressured to resign or believe your job is being unfairly targeted, you can:

  • File a grievance with your agency.
  • Submit a complaint to the U.S. Merit Systems Protection Board (MSPB).
  • Consult with a federal employment attorney for legal representation.
  1. Explore Other Federal Job Options

Rather than resigning completely, employees may consider:

  • Applying for a transfer to another agency.
  • Exploring legal avenues for reassignment protections.

Is Deferred Resignation a “Buyout”?

Deferred Resignation Program is not a true buyout in the traditional sense. While it provides continued salary and benefits for a limited period, it lacks key elements that typically define a federal buyout.

Key Differences Between a True Buyout and This Program:

Factor Traditional Federal Buyout Deferred Resignation Program
Financial Incentive Lump sum payment (e.g., Voluntary Separation Incentive Payment, or VSIP, up to $25,000) No additional lump sum—only continued salary and benefits until resignation date
Eligibility Often limited to agencies undergoing restructuring and RIFs Offered broadly to most full-time federal employees
Voluntary Nature Employee chooses to leave in exchange for a financial payout Employees may feel coerced due to broader workforce restructuring efforts
Impact on Future Federal Employment Can restrict future re-employment with the federal government for a set period States that employees can reapply to federal jobs in the future, but does not guarantee hiring eligibility
Effect on Retirement May include special retirement incentives Continues regular retirement accruals but offers no extra retirement incentives

Why This Is Not a True Buyout

  1. No Lump-Sum Payout
    • Traditional federal buyouts provide a financial incentive, typically in the form of a one-time payment (e.g., up to $25,000 under VSIP).
    • This program only offers continued salary and benefits until September 30, 2025—not additional severance or incentive pay.
  2. No Voluntary Separation Incentive Payment (VSIP)
    • Federal buyouts often involve VSIP payments, which encourage employees to leave without forcing them to resign.
    • The Deferred Resignation Program does not mention VSIP or any similar financial incentive.
  3. No True Flexibility in Resignation Terms
    • Employees cannot extend the resignation date beyond September 30, 2025.
    • Employees cannot negotiate a higher severance package—their pay simply continues until their resignation date.
  4. Potential for Coercion
    • While the program is technically voluntary, the broader workforce policies—including downsizing, reclassification, and stricter conduct standards—may pressure employees to resign before potential termination.
    • Traditional buyouts are typically offered in the context of voluntary workforce reductions, not under policies that hint at potential mass firings.

What This Really Is:

✔️ A temporary financial bridge for employees who may be pushed out due to restructuring.
✔️ A means for agencies to reduce the workforce without immediate layoffs.
✔️ A way to incentivize resignations before implementing more aggressive downsizing measures.

What This Is Not:

❌ A true financial buyout that provides employees with severance or lump-sum incentives.
❌ A guaranteed path to retirement enhancements or special incentives.
❌ A neutral offer—given the broader policies in place, it may function as a soft layoff.

Should You Accept the Deferred Resignation? Key Questions to Ask

Before making a decision, consider:
✔️ Can you afford to leave your federal position?
✔️ Do you have another job lined up?
✔️ Are you eligible for retirement soon?
✔️ Will resigning impact your security clearance or federal pension?
✔️ Could you be targeted later for refusing to resign?

If you are unsure, speaking to a federal employment attorney before the deadline can help you weigh your options.

Final Thoughts: Protect Your Career Before You Resign

The federal deferred resignation program is a major shift in government employment, but resigning without fully understanding the legal and financial consequences can have lasting effects on your career and benefits. Before making a decision, get expert legal guidance.

🔹 Considering the deferred resignation? Understand how it impacts your pension, benefits, and future job prospects.
🔹 Feeling pressured to resign? Learn your legal options and protections before signing anything.
🔹 Planning to stay? Prepare for potential reclassification, policy changes, or job security risks.

Book a Strategy Session with Our Attorneys

💼 One-hour legal strategy session – $750
✔️ Get personalized legal advice on the deferred resignation and its implications.
✔️ Understand the risks and alternatives before making your decision.
✔️ Explore legal protections and strategies tailored to your situation.

📞 Call us today to schedule your session: 202-600-4996
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Don’t make a rushed decision—know your rights, protect your career, and take control of your future.