Last Updated October 1, 2025
Update 10/01/2025: The Deferred Resignation program has ended. Read here for more details and what you can do next.
Additional Updates:
- The EPA has offered it’s employees a 3rd Deferred Resignation program. (7/21/25)
- NASA has announced a plan to offer Deferred Resignation to its employees. This time, instead of being on the rolls through September, employees who accept will be on the rolls until January 9th of 2026. Updated 6/10/25.
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.
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.
This offer does not apply to:
- 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
When do I need to decide on Deferred Resignation?
The initial deadline for accepting deferred resignation is was Thursday, February 6, however certain agencies have offered it again, including the General Services Administration (GSA), the Small Business Administration (SBA), the Defense Department (DoD), the Housing and Urban Development Department (HUD), Department of Energy (DOE), Department of Transportation (DOT), and Department of Agriculture (USDA).
- SBA, DOT employees have until April 7 to accept
- DOE, USDA employees have until April 8 to accept
- HUD, DoD employees have until April 11 to accept
- GSA employees have until April 18 to accept
What if I don’t respond to the “Fork in the Road” email offering Deferred Resignation?
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.
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 next 8 months. 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 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.
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. UPDATE: If you were planning to take Voluntary Early Retirement (VERA), but won’t be eligible for it until October, November, or December 2025, you may be able to take Deferred Resignation now and have those payments extend until you hit your VERA eligibility. 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.
Deferred Resignation FAQs
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.
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.
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.
