I mentored many employees during my career, but explaining probationary periods and the possibility of being removed was a concept that many young employees do not want to believe or comprehend. Image: Orhan Cam/Shutterstock.com
By: Abraham GrungoldThere are approximately 2 million active federal employees who are facing many career situations because of the 2025 Executive orders coming from the new administration. It is a stressful situation for all federal employees.
Some of the programs being used to reduce the federal rolls include:
1. Deferred Retirement Program DRP, Buyouts
2. Voluntary Early Retirement Authority, VERA
3. Reduction in Force, RIF
4. Termination of Probationary Employees.
I have seen all these human resource policies implemented by various presidential administrations, both republican and democrat. These policies can be found on the Office of Personnel Management website
The Clinton Administration utilized all these policies during both terms and approximately 423,000 federal employees were reduced from the workforce.
I was a 36-year federal employee during 1985 through 2022. I worked for the U.S. Department of Labor, U.S Veterans Administration, U.S. Department of Justice, and the U.S. Postal Service. During those years, I heard that the republican administrations were focused on decreasing the size of government. During my first year 1985-86, there was no Cost-of-Living Adjustment for federal pay. The Gramm-Rudman-Hollings Act of 1985, also known as the Balanced Budget and Emergency Deficit Control Act, was a law that set deficit targets and automatic spending cuts to reduce the federal deficit. I experienced it in 1986 which said no COLAS and hiring freezes.
With each change in administration, I personally saw all the above-mentioned programs appearing in my workplace, I saw joy and sadness from many employees among the four different federal agencies that I was employed with during my career.
There was joy from my co-worker who received the opportunity of a VERA where the administration was offering 5 additional years of service and increasing 5 years to your age for retirement. He ran through the office beaming and that he was going to take early retirement because of his offer. On the other hand, my co-worker spoke of a Reduction in Force. If our small office closed and we would have to transfer to the regional office in New York City. My co-worker was obsessed with this rumor and it never happened. The office still exists today.
I mentored many employees during my career, but explaining probationary periods and the possibility of being removed was a concept that many young employees do not want to believe or comprehend.
During my last few years of federal employment, I would ask what is the possibility of a federal buyout. My agency was not offering any, but I observed many agencies offering as much as 15,000 to 40,000 dollars to retire during the fiscal year. The Department of Defense and the Securities Exchange Commissions offered these buyouts in recent years.
As I advise my federal clients and federal friends on how to navigate these various scenarios, I stress not to listen to rumors and keeping a clear head is the only way to deal with them. Most important is to read the literature on the Office of Personnel Management, (OPM) website and understand what rights you have as an employee.
Abraham Grungold is a retired federal employee with 36 years of federal service – including with the USPS Inspector General, the VA Inspector General, the US Dept of Justice, and the US Dept of Labor. Through his company AG Financial Services he helps federal employees with their TSP and federal retirement planning and decisions. Mr. Grungold has written over 80 articles regarding the TSP and FERS retirement and been a guest on several podcasts with the Federal News Radio and Government Executive Magazine.
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See also
Alternative Federal Retirement Options; With Chart
Primer: Early out, buyout, reduction in force (RIF)
Retention Standing, ‘Bump and Retreat’ and More: Report Outlines RIF Process
