Fedweek

OPM: Employees eligible for the deferred resignation offer that are at least age 50 with at least 20 years creditable Federal service, or any age with at least 25 years, are eligible for VERA. Image: Andrea Izzotti/Shutterstock.com

With just days before the now Monday, February 10 deadline for federal employees to accept “deferred resignation,” OPM has issued further guidance on commonly raised questions, including whether the offer includes the option to take early-out retirement and what would be the work expectation up to their separation date for employees who accept.

Those were among the many issues not clearly addressed in earlier guidance that have led many federal employees, unions and outside experts to be skeptical if not outright dismissive of the fast-arising and fast-closing offer to keep employees in paid status until as late as September 30 if they resign before the deadline.

Regarding early-outs, OPM said this in a new posting on its question and answer page, using the acronym for the formal title, voluntary early retirement authority: “Employees who are eligible for the deferred resignation offer and are at least age 50 with at least 20 years creditable Federal service, or any age with at least 25 years creditable Federal service are eligible for VERA along with the deferred resignation offer (unless your position is exempted from the deferred resignation program by your agency).”

While the original guidance had referred to early retirement authority, it did not specifically say it would be granted. The new guidance also makes more specific a reference in the original to those who would become eligible to retire soon after September 30. It says that for those who can retire before December 31 “your deferred resignation date will be extended to match your retirement date”—again subject to the position being eligible.

However, uncertainty regarding eligibility for the offer remains. The guidance excludes “positions related to immigration enforcement and national security, and any other positions specifically excluded by your employing agency.” Some employees say they still have not been informed whether they are eligible—and that they are highly reluctant to accept without knowing for sure, fearing that they would be signaling that they are not committed to their jobs, if it turned out they were not eligible.

Regarding work expectations for those who are eligible and accept, the answer to the question “Am I expected to work during the deferred resignation period?” was changed from “Except in rare cases determined by your agency, you are not expected to work” to a flat “No.”

It added, “We encourage you to find a job in the private sector as soon as you would like to do so. The way to greater American prosperity is encouraging people to move from lower productivity jobs in the public sector to higher productivity jobs in the private sector.”

That latter statement has rankled many employees because of its implication that public sector work is less valuable than private sector work. Some also found an implication that federal employees have a poor work ethic in a further statement that “You are most welcome to stay at home and relax or to travel to your dream destination. Whatever you would like.”

Many employees skeptical of the offer also have pointed out that the current funding authority for most agencies expires March 14, and that Republican leaders of the White House and Congress want to reduce budget levels afterward. That calls into question agencies’ ability to continue paying full pay and benefits to those who accept the offer.

The OPM posting notes that “Any government shutdown could potentially affect an employee’s pay regardless of whether he or she has accepted the deferred resignation offer,” although it does not directly address the question of what might happen if agency budgets are reduced.

Other concerns that employees continue to voice as the deadline approach include whether the offer is a legally binding commitment on the part of the government, especially given that it is unprecedented to keep employees for so long on administrative leave. That leave typically is used for short-term excused absences for reasons such as participation in agency-sponsored community events, blood donation drives, professional conferences and the like.

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See also,

How to Handle Taxes Owed on TSP Roth Conversions? Use a Ladder

The Best Ages for Federal Employees to Retire

Best States to Retire for Federal Retirees: 2025

Pre-RIF To-Do List from a Federal Employment Attorney

Primer: Early out, buyout, reduction in force (RIF)

2025 Federal Employees Handbook