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Urgent – Critical Details on the Deferred Resignation Program

Urgent – Critical Details on the Deferred Resignation Program - Dugan Brown

Disclaimer

The information in this article is based on guidance currently provided by the U.S. Office of Personnel Management (OPM) and the U.S. Department of Justice (DOJ). However, agency-specific policies may vary, and additional guidance is still being developed. Before making any decisions regarding resignation, employees should consult with their agency’s Human Resources department and review official policies released by their agency.

What You Need to Know About OPM’s Deferred Resignation Program

The U.S. Office of Personnel Management (OPM) has announced a deferred resignation program, allowing federal employees to submit their resignation in advance with an effective date of September 30, 2025 (or earlier, if preferred).

Why Does This Matter?

Employees who opt in will be placed on paid administrative leave until their resignation date and exempt from return-to-office requirements. Agencies may require some employees to remain temporarily for transition purposes, but most will not be required to report to work.

What Happens Next?

  • If you opt in, your duties will be reassigned or eliminated.
  • You will be placed on paid administrative leave until your resignation date.
  • Your agency will report participation numbers and other relevant data to OPM on a weekly basis.

Can You Change Your Mind?

Employees may request to rescind their resignation, but approvals are unlikely. The only stated exception is for employees who submit retirement paperwork with a retirement date before their deferred resignation date. Agencies have full discretion over these decisions.

Who Is Not Eligible?

Eligibility varies by agency, but some roles—including military personnel, U.S. Postal Service employees, immigration enforcement, and national security positions—are explicitly excluded. Employees should check with their agency to confirm eligibility.

OPM has provided an FAQ for Chief Human Capital Officers (CHCOs) outlining the program’s implementation. Employees with additional questions should contact their agency’s HR department.


Understanding the Deferred Resignation Program

Eligibility & Participation

The program is open to full-time federal employees, except for those in excluded roles. Participation is voluntary, and employees who do not respond to the resignation email are not required to take any action.

Employees on approved leave who missed the February 6, 2025 deadline may request an extension, subject to agency approval. However, employees who attempt to opt in after the deadline without an approved absence will generally be ineligible.

Resignation & Retirement Options

Employees may accelerate their resignation date but cannot extend it past September 30, 2025, except in limited retirement cases. Those eligible for early or full retirement before their resignation date may retire instead, with retirement overriding their deferred resignation.

Changing Your Mind

Employees who resign under this program may request to rescind their resignation, but OPM has stated that approvals are unlikely. This is due to most employees being placed on administrative leave, which can justify denial of rescission requests. The only exception is for employees who submit retirement paperwork with a retirement date prior to their resignation date.

Consider the Interim Period

Upon retiring, federal retirees typically experience a delay before collecting their full pension. During this interim period, only around 50%-70% of one’s pension with federal tax deductions and no FERS annuity supplement are received. While this lasts 2-3 months for most federal retirees, it would potentially be much longer during a time of high-volume processing for OPM.

If a large percentage of employees resign or retire at once, this waiting period could extend to a year or more, delaying access to full benefits. While waiting until September 30th might maximize short-term earnings, those who need reliable pension payments may find retiring earlier a more stable financial choice.

Employment & Future Opportunities

  • Employees may pursue outside employment after submitting their resignation but should check for agency-specific restrictions.
  • Deferred resignation does not prevent future federal employment.

Process & Confirmation

  • Employees will receive an email confirmation within 48 hours of submitting their resignation.
  • If an employee did not receive the resignation email, they should contact their agency or check OPM’s website.
  • If a resignation was submitted on someone’s behalf without authorization, agencies should follow standard protocol for addressing unauthorized use of government email accounts.

Paperwork & Documentation

According to OPM, an employee’s acceptance of the deferred resignation letter serves as formal resignation. Agencies may request additional documentation, and employees must comply with reasonable requests.


DOJ Confirms Legality and Expands Protections for Deferred Resignation

Pay & Protections

The Department of Justice (DOJ) assures employees that the deferred resignation offer is lawful and will be upheld.

Employees who accept will remain on paid administrative leave with full benefits through September 30, 2025, without risk of early termination due to a reduction-in-force or budget cuts, even in the event of a government shutdown.

Employees who submit a retirement application during the deferred resignation period will have their retirement override their resignation.

Early Retirement Opportunities and Potential Extensions

Additionally, DOJ has announced plans to request Voluntary Early Retirement Authority (VERA) for eligible employees participating in the program. OPM has signaled it will approve such requests, allowing certain employees to retire early. DOJ also states that employees reaching full retirement eligibility in 2025 may be granted an extension beyond September 30, allowing them to retire at their full eligibility date.

Outside Employment RESTRICTIONs

Most employees will not be required to work during the deferred resignation period and generally will not be permitted to seek outside employment. However, agencies may grant exceptions. Employees should consult their HR department for specific guidance.


Key Takeaways

DOJ Confirms Legality – The deferred resignation offer is valid, lawful, and will be honored.

The Program’s Structure – Employees can resign in advance, with an effective date no later than September 30, 2025.

Guaranteed Pay & Benefits – Employees who opt in will continue receiving full pay and benefits through September 30, 2025, even in the event of a government shutdown.

Participants Who Accept Will Be Placed on Paid Leave – Employees will be on paid administrative leave and exempt from return-to-office requirements.

Rescinding a Resignation is Unlikely – Once resigned, approvals to rescind are rare, except for those who retire before their resignation date.

Potential for Early Retirement – DOJ is requesting VERA approval, which could allow eligible employees to retire early.

Possible Extensions for Full Retirement Eligibility – Employees reaching full retirement eligibility in 2025 may have their resignation date extended to align with their eligibility date.

Outside Employment RestrictionsMost employees who accept the offer are not required to work during the deferred resignation period but are generally restricted from seeking outside employment unless approved by their agency.

Pension Processing Delays Are Possible – A high volume of retirements may cause delays in pension processing, leading to a prolonged interim period.

Eligibility Varies by Agency – Employees should consult HR for specific guidance.

Further Policy Details Are Still in Development – While OPM and DOJ have provided guidance, additional agency-specific policies are still being written.