Last Updated April 7, 2026
Deferred Resignation News (Updated)
The most recent agency to offer Deferred Resignations is the Department of Interior. Despite dropping about 20% of its workers in the last 15 months, the department has now opened up their Deferred Resignation 3.0, as well as encouraging Voluntary Early Retirement (VERA) to those who are eligible. This offer is exclusive to Department of Interior Employees, excluding those who were hired in the last 12 months, are in the process of being fired, or on a limited time appointment. Working on a shorter time frame, the offer will close April 12, 2026.
Employees who accept will:
- Stop working by April 29, 2026
- Be on paid leave through September
- Potentially forfeit valuable future support
Before you decide what to do, it’s important to understand how Deferred Resignation could impact your long-term benefits—especially if you’re dealing with an injury or illness that makes work challenging. Drop down to read how accepting could put your chances of securing Disability Retirement at risk.
What is Deferred Resignation?
The administration is positioning Deferred Resignation as a way to leave work on your own terms and get paid for a limited time, rather than waiting to see if job cuts might affect your position or agency.
When do I need to decide on Deferred Resignation?
The latest Department of Interior offer will close Sunday, April 12th.
What if I don’t accept the Department of Interior Deferred Resignation?
There was no penalty for not accepting this option, and this time around RIFs are not being considered. When the Deferred Resignation Program was first introduced, it was presented as a way for people to leave voluntarily before involuntary removals began. This threat isn’t present this time, though changes are always possible.
What to know before you accept a resignation deal:
1. You may be leaving years of income and health benefits behind.
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:
- 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 that prioritizes your health needs
- You can learn more about the benefits of Federal Disability retirement here.
After Deferred Resignation payments are out, 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.
2. There are other options if you don’t want to return to in-person work or if you’re worried about job security:
- 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.
3. 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 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.
