If you’re a federal employee, you’ve likely heard of the Trump administration’s new buyout offer called Deferred Resignation, which would allow federal workers who resign to continue getting paid through September 30, 2025. The deadline to accept this offer has passed. (Updated 2/20/25)
But before you decide what to do, it’s important to understand how Deferred Resignation could impact your long-term benefits—especially if you’re dealing with an injury or illness that makes work challenging.
What is Deferred Resignation?
The administration is positioning Deferred Resignation as a way to leave work on your own terms and get paid for a limited time, rather than waiting to see if job cuts might affect your position or agency.
This offer does not apply to:
- Military personnel of the Armed Forces
- Employees of the U.S. Postal Service
- Those in positions related to Immigration Enforcement and National Security
- Any positions specifically excluded by your agency
Deferred Resignation is only available as an option until February 6, 2025. That leaves federal employees a little over a week to decide what to do.
What to know before you accept a resignation deal:
1. You may be leaving years of income and health benefits behind.
If you’re working with an injury or illness that’s impacting how well you do your job, an option like Federal Disability Retirement provides long-term security – think payments and insurance beyond the next 8 months. Find out more about the qualifications and requirements to see if you’re a good candidate for the benefit, which offers:
-
-
- Reliable monthly income
- The ability to keep your health and life insurance
- The ability to keep gaining years of service
- The option to get a different job in the private sector that prioritizes your health needs
- You can learn more about the benefits of Federal Disability retirement here.
-
2. There are other options if you don’t want to return to in-person work or if you’re worried about job security:
-
-
- Use FMLA: Take time off while you decide what your next steps are.
- Apply for reasonable accommodation: Ask for adjustments to your work environment to help you return to the office.
- Submit medical documentation: Have your doctor confirm that you need to work from home. More details about what supportive medical documentation looks like can be found here.
- Explore early or regular retirement: One of these may be an option for you, though you should note that they may interact with an accepted offer of Deferred Resignation. UPDATE: If you were planning to take Voluntary Early Retirement (VERA), but won’t be eligible for it until October, November, or December 2025, you may be able to take Deferred Resignation now and have those payments extend until you hit your VERA eligibility. Check with your agency
- To learn more about your federal retirement options, click here.
-
3. The OPM answered some frequently asked questions about Deferred Resignation and how it might interact with other things like regular retirement and leave here.
4. If you decide you don’t want to accept the Deferred Resignation offer, you don’t need to respond to the email. There’s no penalty for not responding!
What happens if you’re currently applying for Disability Retirement?
Accepting Deferred Resignation could cause significant issues with your Disability Retirement application. Here’s why:
- The OPM is more likely to approve FDR applications when it’s clear you stopped working due to a medical condition.
- Voluntarily resigning could make your need for FDR appear less urgent or necessary.
- Staying on the rolls strengthens your case by showing that your agency couldn’t accommodate your medical needs. In general, we don’t recommend resigning from your federal position while you’re applying for Federal Disability Retirement.
- If you’re a client of Harris Federal Law Firm, we recommend you reach out to your case manager directly before taking any action. They’ll be able to advise you best on your specific case.
Although Deferred Resignation may feel like a quick fix, you could be leaving behind years of income and health benefits if you’re struggling with an injury or illness. Federal Disability Retirement offers long-term income, insurance coverage, and more that Deferred Resignation doesn’t.
We understand that this is a big decision, and time is extremely limited. Don’t risk a decision that could cost you thousands in the long run – let us help you find the option that’s best for you.
Reach out today to schedule a totally free consultation and we’ll help you get on a path to long-term security and success.
This blog is provided for informational purposes only and does not constitute legal advice. This blog should in no way be taken as an indication of future results. Transmission of the blog is not intended to create, and the recipient does not constitute, an attorney-client relationship between sender and receiver. The information in this blog is offered only for general informational and educational purposes.
