Navigating the OPM Deferred Resignation Program: What’s Next for Federal Employees?

The Beginning

The recent announcement from OPM regarding the deferred resignation program has left many federal employees facing a critical decision. While this initiative initially seems directed at remote workers, it’s likely that its impact will extend to others as the process unfolds. With reports suggesting that the federal workforce could be reduced by as much as 75%, now is the time for employees to carefully assess their options—whether to remain in their current roles, transition to new employment, or explore self-employment opportunities.

But before making any decisions, it’s essential to understand what’s at stake.

Defining “Similar Compensation”

Compensation isn’t just about salary—it’s the entire package that contributes to financial security and overall well-being. Beyond your paycheck, it includes:

• Retirement contributions (FERS, TSP)
• Health and life insurance benefits (FEHB, FEGLI)
• Paid time off (annual leave, sick leave)
• Work-life balance and the structured schedule you’ve enjoyed as a federal employee

When considering a career change, it’s not just about replacing a salary but ensuring that your total compensation—both financial and non-financial—supports your lifestyle, health, and long-term security.

The Bigger Picture: Work, Life, and Fulfillment

A job is more than just a paycheck. It provides stability, professional growth, and a sense of purpose. It offers time with family, opportunities for personal development, and the ability to contribute meaningfully to your community. The question is: How much of this can you retain in a different role or career?

This is the real challenge—finding a path forward that maintains the financial and personal benefits of your federal career while adapting to a changing landscape.

Key Considerations for Federal Employees

If you’re weighing your options, start by identifying your priorities. What matters most to you? Is it financial security? Work-life balance? Job stability? Answering these questions will help shape your next steps.

Consider the retirement protections built into your current role:

1. FERS Disability Retirement – After 18 months of service, employees have access to FERS disability retirement, along with accrued sick and annual leave as short-term protection. How do you replace this safety net elsewhere?
2. FERS Deferred Retirement – After five years, employees qualify for deferred retirement benefits at age 62. Can another employer offer similar long-term security?
3. Health & Life Insurance in Retirement – Federal employees who retire early or through discontinued service retirement can retain employer-subsidized health and life insurance at rates significantly lower than private-sector equivalents. How do you find an employer willing to provide comparable benefits?

Given the rising cost of healthcare, securing an employer who contributes to health insurance at a level similar to the federal government (66–75% of premiums) is crucial when considering a transition.

What’s Next?

So, is now the time to make a change? Should you stay and see how your position evolves, or is it time to negotiate a new opportunity? If a transition is inevitable, will you move to another employer or pursue self-employment?

These are the critical questions that require careful consideration. As you navigate this uncertain landscape, it’s important to recognize the value you bring to a new employer and ensure you are compensated accordingly.

In our next newsletter, we’ll explore how to assess your professional value, position yourself effectively to potential employers, and negotiate a compensation package that reflects your skills, experience, and contributions.

Stay tuned.