We are less than 15 days into the new administration, and the flurry of executive orders and actions continues to feel like gut punches to so many, more so to those most affected. It would be nice to say we didn’t see it coming, yet we did. What appears to be a carrot could actually be a stick: OPM has published an offer of deferred resignation for a significant portion of the federal workforce. We found some sound advice, which we provide below, but let’s first frame this action.
Targeting the Federal Work Force
Remember the Heritage Foundation’s Project 2025 playbook? It was published in 2023, with updates as time passed, and is being enacted, section by section.
Project 2025, Pages 69-85: Central Personnel Agencies Managing the Bureaucracy (Authors: Donald Devine, Dennis Dean Kirk, and Paul Dans)
Simply reducing numbers can actually increase costs. OMB instructions following President Trump’s employment freeze told agencies to consider buyout programs, encouraging early retirements in order to shift costs from current budgets in agencies to the retirement system and minimize the number of personnel fired. ~Project 2025
On January 28, an email was sent to 2 million federal employees offering a “deferred resignation” to leave government service. OPM advises, “Deferred resignation is available to all full-time federal employees except for military personnel of the armed forces, employees of the U.S. Postal Service, those in positions related to immigration enforcement and national security, and those in other positions specifically excluded by your employing agency.”
“The Fork in the Road” gives federal employees until February 6, 2025, to make their decision. If they accept, they will receive their normal pay through September 25, 2025. The date aligns with the last full pay period in FY2025. OPM’s FAQ.
Depending upon how many employees accept or are summarily fired in one of the retribution acts (see DOJ employees terminated), going into FY2026 there is a real possibility the federal landscape will be a “shitshow.”
Interestingly, the verbiage bears a remarkable similarity to that which was used by Elon Musk when he took over the reins at Twitter, now X.
This is no coincidence, as we see Musk own it almost immediately with this Tweet of affirmation
What should you do if you are a federal employee contemplating sending the “Resign” email? Get some good advice from your lawyer and financial advisor. Here’s a helpful list of reasons why which we found on LinkedIn from Jim Thompson
OPM’s Letter on Resignation:
To my Federal friends, please consult an attorney and an accountant before taking this option. Several concerning aspects of this document stand out to me as problematic:
* The deferred resignation program appears to be unusually brief in its details given its significance – it offers continued pay and benefits through September 30, 2025, but lacks crucial specifics about benefit continuation, retirement implications, and future employment rights that would typically be included in federal workforce reduction programs.
* The document presents what seems to be an artificially short decision window (January 28 to February 6, 2025), which may not provide adequate time for employees to consult with financial advisors, attorneys, or fully understand the implications of their choice.
* The lack of specific guarantees regarding benefit continuation is particularly troubling – federal employees typically have very specific statutory rights regarding benefits, and this document’s vagueness leaves many critical questions unanswered about health insurance, retirement contributions, and other core benefits.
Looking at the pillars outlined, they suggest significant structural changes:
* The return-to-office mandate combined with office consolidation could effectively force relocations
* The emphasis on “at-will status” represents a fundamental shift from traditional federal employment protections
* The reference to “enhanced standards of conduct” and prioritized investigations lacks specific criteria or due process details
The document’s brevity regarding the actual terms of the deferred resignation program is notable – for comparison, typical federal workforce reduction programs usually include detailed information about:
– Specific benefit continuation terms
– Impact on retirement calculations
– Clear statements about future federal employment eligibility
– Explicit information about severance calculations
– Details about unemployment compensation eligibility
