VA Deferred Resignation Program: A Complete Guide

The VA Deferred Resignation Program is an option for federal employees—especially those working under the Department of Veterans Affairs—to resign from their job while keeping their federal retirement benefits safe for the future. It’s not the same as retirement or quitting forever. If you’ve worked long enough in federal service, you can leave now and still apply for retirement benefits later when you reach the eligible age. Think of it as hitting pause on your government career without losing the benefits you’ve earned.

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This guide explains how it works, who is eligible to apply, and why it might be worth considering.

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Important Points about the VA deferred resignation program

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The deferred resignation program VA is more than just an HR policy. It’s a strategic option that supports long-term planning. Here’s what makes it significant for federal employees:

• Preserves Retirement Eligibility: Your federal service time up to the resignation still counts toward your pension if you meet certain conditions.
  
  
• Not a Burned Bridge: It allows employees to exit on good terms, maintaining eligibility for future federal positions.
  
  
• Appeals to Career Planners: For those thinking long-term (especially FERS-covered employees), it helps keep retirement and reemployment doors open.
  
  
• Acts Like a Soft Exit: It’s a way of leaving without leaving everything behind.
  
  
• Less Known, More Useful: Not everyone talks about it, but it’s a critical piece of the federal employment toolkit for career flexibility.
  
  

For many, it functions like a pause button in federal service, without losing the years you have invested.

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Who Is Eligible?

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Eligibility for the VA Deferred Resignation Program typically revolves around your employment status, tenure, and retirement plan enrollment. While policies can vary slightly based on agency interpretation, here are the general criteria:

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• Permanent Employees: You must be serving in a permanent position within the VA.
  
  
• Minimum Federal Service Requirement: Usually, you must have at least 5 years of creditable service to be eligible to defer federal retirement benefits.
  
  
• FERS or CSRS Covered: Employees enrolled in the Federal Employees Retirement System (FERS) or Civil Service Retirement System (CSRS) are typically eligible.
  
  
• No Disciplinary Action Pending: Employees must be in good standing at the time of resignation.
  
  
• Resignation Must Be Voluntary: The program applies only if you’re choosing to resign, not if you’re removed or separated involuntarily.
  
  

Veterans, especially those who served honorably and transitioned into the VA system, may also find this program aligns with transitional or second-career plans.

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Key Features of the Program

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Understanding the defining features of deferred resignation helps you weigh the benefits:

1. Retention of Federal Retirement Benefits: Even if you resign, your service years count. Once you reach the eligible retirement age, you can apply for deferred retirement.
   
   
2. Service Credit is Locked In: The federal government keeps a record of your service years. That means even after you leave, your accrued time is preserved for later retirement calculations.
   
   
3. Eligibility for Deferred Retirement: If you meet the minimum years of service (typically 5 for FERS), you can receive a pension starting at age 62, or earlier with more years of service.
   
   
4. Does Not Include Immediate Benefits: Since you're resigning (not retiring), you won't receive immediate annuity, FEHB (Federal Employees Health Benefits), or FEGLI (Federal Employees Group Life Insurance) coverag.

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Benefits of Choosing Deferred Resignation

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Why do employees opt for this over full retirement or just leaving altogether? Let’s break down the most practical benefits:

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1. Flexibility Without Finality

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Deferred resignation isn’t a firm goodbye. It lets you explore new opportunities—private sector, education, personal sabbaticals—without erasing your government service legacy.

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2. Preserves Your Retirement Rights

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This path is a way to protect what you’ve already earned. If you meet the minimum service requirement, you can still collect retirement benefits at the appropriate age, even after leaving.

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3. Strategic Exit for Mid-Career Professionals

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Mid-career employees who aren’t quite ready to retire but need a break can benefit from this. It offers a softer exit strategy with future flexibility.

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4. Opportunity to Re-enter Federal Service

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In many cases, a deferred resignation doesn’t make you ineligible for rehire. You can still apply for federal jobs later with your prior service experience adding weight to your application.

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5. Peace of Mind

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It brings psychological comfort to those leaving on good terms but are unsure about their next steps. There's less pressure knowing your efforts still count.

How to Apply: Step-by-Step Process

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A general VA deferred resignation program process involves—

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Step 1: Assess Eligibility

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Verify that you meet the minimum service requirements and are covered under FERS or CSRS. Speak with your HR office or retirement counselor for personalized advice.

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Step 2: Submit a Resignation Letter

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Write a formal resignation letter to your supervisor and the HR department. Indicate the effective date and mention that you're choosing resignation with intent to apply for deferred retirement benefits in the future.

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Step 3: Complete Required Paperwork

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Fill out any agency-specific forms and ensure your Official Personnel Folder (OPF) is up to date. You’ll also receive information about your retirement contributions and options.

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Step 4: Decide on Retirement Contributions

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You have two choices:

• Leave your contributions in the retirement system (recommended if you want to apply for deferred retirement later).
  
  
• Request a refund (this cancels your deferred retirement eligibility).
  
  

Step 5: Retain Records

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Keep copies of your SF-50 (Notification of Personnel Action) and service computation records. You’ll need these when applying for deferred retirement.

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Step 6: Later—Apply for Deferred Retirement

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When you reach the eligible age, you can apply for deferred retirement using Form RI 92-19 (FERS) or Form RI 92- 19A (CSRS). Submit this to the OPM (Office of Personnel Management) at that time.

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Frequently Asked Questions (FAQs)

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Can I receive health benefits after resignation?

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No. Once you resign, you lose access to FEHB. However, if you return to federal service or retire later, you may regain eligibility.

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Will I lose my Thrift Savings Plan (TSP)?

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No. Your TSP remains yours. You can roll it over, leave it as is, or start withdrawals once eligible.

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Can I return to federal service later?

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Yes, resignation (even deferred) does not bar you from future federal employment. Your service record may even give you an advantage.

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How is my pension calculated if I resign now?

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Your pension will be based on your high-3 average salary and years of service at the time of resignation. You’ll receive it once you reach retirement age.

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Do I have to notify OPM now?

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No, you only contact OPM when you're ready to claim your deferred retirement benefits.

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What happens if I take a refund of my retirement contributions?

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You forfeit all future retirement benefits under FERS or CSRS if you take a refund.

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Final Thoughts

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Not all exits from federal service need to be permanent. The VA Deferred Resignation Program offers a thoughtful way to step away while keeping the door open to future benefits and reentry. It’s a path of patience and planning—a route often overlooked but filled with strategic value. Whether you’re seeking a career change, handling personal transitions, or exploring new ventures, this option ensures your years of public service continue to matter.

Before making any final decision, it’s always wise to speak to a qualified retirement advisor like Federal Pension Advisors for a secure financial future!

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