What is Deferred Resignation?
When Deferred Resignation was first introduced in January of 2025, the administration positioned it as a way to leave work and still get paid for a limited time, rather than waiting to see if job cuts might affect your position or agency.
The first Deferred Resignation program was offered to all federal workers and offered eight months of pay in exchange for leaving work.
Since then, federal agencies have used Deferred Resignation as a way to shape their own work forces. There have been several agency-specific offers throughout 2026.
Who it’s for and how long you’re paid after quitting varies, but the common denominator is – quit now, and you’ll keep getting paid for a short period of time.
When do I need to decide on Deferred Resignation?
When a new Deferred Resignation program is offered, there’s always a deadline. Most of the time, agencies don’t give much time between the offer and the last day to decide.
Here’s what you need to know: You don’t have to accept an offer and there’s no penalty for choosing not to take it.
If it doesn’t match your needs, you shouldn’t feel pressured to accept.
Three things to know before you accept a resignation deal:
- You may be leaving years of income and health benefits behind.
A lot of times, people accept Deferred Resignation offers because they’ve already been struggling to do their job with their health.
If you’re working with an injury or illness that’s impacting how well you do your job, an option like Federal Disability Retirement provides long-term security – think payments and insurance beyond the limited months on the Deferred Resignation.
Find out more about the qualifications and requirements to see if you’re a good candidate for the benefit, which offers:
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- Reliable monthly income
- The ability to keep your health and life insurance
- The ability to keep gaining years of service
- The option to get a different job in the private sector
After Deferred Resignation payments are out, you won’t receive payments from your agency, you won’t get health and life insurance benefits, and you’ll need to find another job.
If you’re struggling in your job because of a sickness or injury, Federal Disability Retirement offers secure, long-term benefits. To find out more, click here.
- There are other options if you don’t want to return to in-person work or if you’re worried about job security:
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- Use FMLA: Take time off while you decide what your next steps are.
- Apply for reasonable accommodation: Ask for adjustments to your work environment to help you return to the office.
- Submit medical documentation: Have your doctor confirm that you need to work from home. More details about what supportive medical documentation looks like can be found here.
- Explore early or regular retirement: One of these may be an option for you, though you should note that they may interact with an accepted offer of Deferred Resignation. Check with your agency
- To learn more about your federal retirement options, click here.
- The OPM answered some frequently asked questions about Deferred Resignation and how it might interact with other things like regular retirement and leave here.
What happens if you’re currently applying for Disability Retirement?
Accepting Deferred Resignation could cause significant issues with your Disability Retirement application. Here’s why:
- The OPM is more likely to approve FDR applications when it’s clear you stopped working due to a medical condition.
- Voluntarily resigning could make your need for FDR appear less urgent or necessary.
- Staying on the rolls strengthens your case by showing that your agency couldn’t accommodate your medical needs.
In general, we don’t recommend resigning from your federal position while you’re applying for Federal Disability Retirement.
If you’re a client of Harris Federal Law Firm, we recommend you reach out to your case manager directly before taking any action. They’ll be able to advise you best on your specific case.
What if I already accepted a Deferred Resignation? Can I still apply for Disability Retirement?
Even though this is more complicated, accepting the Deferred Resignation doesn’t always mean you can’t apply for Disability Retirement. It all depends on the specifics of your situation. Give us a call and we can help you determine your next steps.
What happens to my health and life insurance if I accept Deferred Resignation?
Your health and life insurance will end shortly after your separation unless you get continued coverage under COBRA or convert your life insurance to a private policy. Disability Retirement allows you to keep your Federal Employee Health Benefits (FEHB) and Federal Employees’ Group Life Insurance (FEGLI) coverage.
If I accept Deferred Resignation, can I work another federal job?
Yes, but it may depend on the specific terms of your resignation agreement and your agency’s policies. It’s always a good idea to confirm with your agency if there are any restrictions.
How does accepting Deferred Resignation affect my future federal pension?
If you resign and don’t return to federal service, your years of service stop accumulating.
The bottom line:
Although Deferred Resignation may feel like a quick fix, you could be leaving behind years of income and health benefits if you’re struggling with an injury or illness. Federal Disability Retirement offers long-term income, insurance coverage, and more that Deferred Resignation doesn’t.
We understand that this is a big decision, and time is extremely limited. Don’t risk a decision that could cost you thousands in the long run – let us help you find the option that’s best for you.
If your question wasn’t answered above, reach out and schedule a free consultation today. Let us guide you through your options and help you make the decision that’s best for your future.
This blog is provided for informational purposes only and does not constitute legal advice. This blog should in no way be taken as an indication of future results. Transmission of the blog is not intended to create, and the recipient does not constitute, an attorney-client relationship between sender and receiver. The information in this blog is offered only for general informational and educational purposes.
