Understanding Deferred Resignation Update: What Federal Employees Need to Know

The Deferred Resignation Program (DRP), also referred to as the "Fork in the Road," is now officially closed. The Office of Personnel Management (OPM), which oversees the program, has confirmed that any resignations submitted after 7:20 p.m. ET on February 12, 2025, will not be accepted. Although the program included a second round, many agencies have now ended their DRPs or are no longer accepting applications.

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Understanding Deferred Resignation: What Federal Employees Need to Know

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In early 2025, the U.S. Office of Personnel Management (OPM) introduced a "deferred resignation" program, offering federal employees the option to resign effective September 30, 2025, while continuing to receive pay and benefits until that date.

This initiative, part of a broader effort to reduce the federal workforce, has generated significant discussion and concern among federal employees. As agencies like the Department of the Air Force plan to reduce their civilian workforce by 5–8% in the coming months, understanding the implications of deferred resignation is crucial for those considering this option.

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Here's a more detailed update:

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Closed Program

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The original Deferred Resignation Program (DRP), a government-wide initiative offered by the Office of Personnel Management (OPM), is now officially closed. Federal employees who did not accept the offer by the February 12, 2025, deadline are generally no longer eligible to participate, according to OPM’s FAQs.

Second Round

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Several agencies, including the Department of Defense and the Department of the Treasury, launched second rounds of DRPs or similar voluntary resignation offers. These follow-up programs often featured different deadlines and eligibility criteria. However, most of these agency-specific programs have also now concluded.

Exceptions and Extensions

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According to OPM guidance, some exceptions may apply—particularly for employees who were on approved leave during the DRP window and did not have adequate time to review the offer. In such cases, certain agencies may consider granting deadline extensions.

Impact on Workforce

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The DRP was designed to allow agencies to manage workforce reductions in a structured way and avoid mass layoffs. However, some agencies, such as the IRS, encountered unanticipated challenges, including situations where employees had to be reinstated after being initially separated.

Ongoing Legal Questions

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There are unresolved legal concerns related to the DRP, particularly regarding an agency's authority to deny applications or rescission requests. These issues may continue to evolve as cases emerge.

Recent Developments

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In some instances, such as at the USDA, agencies have had to urgently refill roles vacated under the DRP. This has led to unexpected situations where employees who had planned to leave were asked to remain.

Next Steps

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For detailed information about your agency’s DRP, including possible exceptions or updates, consult your HR office or refer to your agency’s official intranet communications.

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What Is Deferred Resignation?

Deferred resignation allows federal employees to voluntarily resign from their positions while continuing to receive their salary and benefits until a specified future date. This approach provides a transitional period for employees to plan their next steps while aiding agencies in workforce restructuring.

Eligibility and Agency-Specific Guidelines

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Unlike the initial "Fork in the Road" offer managed centrally by OPM, the current round of deferred resignations is overseen by individual agencies. This means that eligibility criteria, application processes, and deadlines can vary significantly between agencies. For example, the Department of the Air Force has communicated its intent to reduce its civilian workforce by 5–8% and is encouraging participation in voluntary programs like deferred resignation.

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Do pay attention on: what is a deferred retirement

Pros and Cons of Deferred Resignation

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Pros:

• Continued Compensation: Employees receive their full salary and benefits until the effective resignation date, providing financial stability during the transition.
• Voluntary Exit: Opting for deferred resignation can be preferable to involuntary separation, offering more control over the departure timeline.

Cons:

• Loss of Employment Rights: Resigning voluntarily may forfeit certain employment rights, including appeal rights in the event of a reduction in force (RIF).
• Uncertainty of Benefits: There is concern about the enforceability of the promised benefits, as some legal experts question the program's compliance with federal employment laws.

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Legal and Financial Considerations

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Legal experts and union representatives have raised concerns about the deferred resignation program's legality and the potential risks involved. U.S. District Judge George O'Toole Jr. temporarily halted the program due to legal challenges, highlighting the uncertainty surrounding its implementation.

Financially, employees must consider the impact on their retirement benefits. For instance, under the Federal Employees Retirement System (FERS), resigning before reaching the minimum retirement age with at least five years of service may allow for deferred retirement benefits, but this could affect eligibility for health and life insurance coverage.

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Making an Informed Decision

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Before deciding on deferred resignation, federal employees should:

• Consult Agency HR: Understand the specific terms and conditions set by your agency.
• Seek Legal Advice: Discuss potential legal implications with a qualified attorney.
• Evaluate Financial Impact: Assess how resignation will affect your retirement benefits and overall financial situation.
• Consider Alternative Options: Explore other programs like Voluntary Early Retirement Authority (VERA) or Voluntary Separation Incentive Payments (VSIP) that may be available.

Conclusion

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Deferred resignation presents both opportunities and risks for federal employees. While it offers a structured path to exit the federal workforce with continued compensation, the legal uncertainties and potential loss of employment rights necessitate careful consideration. Employees are encouraged to thoroughly evaluate their individual circumstances and consult with professionals before making a decision.