Thinking about Deferred Resignation but not sure if it’s the right choice? You’re not alone – the decision can feel overwhelming, and we’ve been getting lots of questions about it. To make things easier, we’ve put together a simple Q&A with the answers you need to help you decide what’s best for you.
If you want more details about Deferred Resignation, you can read our full blog or visit the OPM’s frequently asked questions page here.
And if you want to know how all the new executive orders and actions might affect you, you can visit our guide or schedule a free consultation today!
Q: Who isn’t eligible for Deferred Resignation?
A: So far, Deferred Resignation isn’t an option for these federal employees:
- Military personnel of the Armed Forces
- Employees of the U.S. Postal Service
- Those in positions related to Immigration Enforcement and National Security
- Any positions specifically excluded by your agency
Q: When do I need to decide on Deferred Resignation
A: The original 2/6 deadline has been postponed to an unspecified date, due to the ongoing legal battle.
Q: What if I don’t respond to the “Fork in the Road” email offering Deferred Resignation?
A: There’s no penalty for not responding to the email. You’ll continue in your position like normal, though you may be impacted by other initiatives working to reduce the size of the federal workforce
Q: Does Deferred Resignation offer any long-term benefits?
A: No. After September, you won’t receive payments from your agency 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.
Q: Can I accept Deferred Resignation while applying for Disability Retirement?
A: In general, we don’t recommend resigning from your federal position while you’re applying for Federal Disability Retirement because it can cause some serious issues with your case. You can learn more about this on our full blog about Deferred Resignation.
Q: If I was planning to retire early OR normally by September 30, 2025, can I still accept Deferred Resignation?
A: Yes, in most cases. If your regular retirement date was planned for some time before September 30, you can accept Deferred Resignation now, and when your retirement date comes, your retirement payments will override your resignation payments.
Basically, if you were planning to retire in June, you’d receive resignation payments until June, and after that you’d start receiving your regular retirement payments. Check with your agency to see if you’re eligible.
Q: What if I’m scheduled to retire between October 1, 2025, and December 31, 2025? Can I still accept Deferred Resignation?
A: In most cases, yes. If you planned to retire within that window, your agency may extend the Deferred Resignation period to match your retirement date.
That means that if you planned to retire on October 15, 2025, you’d receive resignation payments until that date and then automatically switch over to your retirement payments. Check with your agency to see if you’re eligible.
Q: If I’ll be eligible for Voluntary Early Retirement (VERA) by the end of 2025, can I still accept Deferred Resignation?
A: In most cases, yes. And if you’re not eligible for your VERA until October, November, or December of this year, your agency may extend your deferred resignation payments until you reach eligibility. Since developments continue, it’s best to check with your agency before making any final decisions.
Q: What happens to my health and life insurance if I accept Deferred Resignation?
A: 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.
Q: If I accept Deferred Resignation, can I work another federal job?
A: 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.
Q: How does accepting Deferred Resignation affect my future federal pension?
A: If you resign and don’t return to federal service, your years of service stop accumulating.
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.
