OPM Deferred Resignation: What Federal Employees Must Know

Introduction

Federal employees recently received an email from the Office of Personnel Management (OPM) titled “Fork in the Road.” This email presents a critical decision:

Remain in federal service under new workforce reforms, including stricter performance measures and return-to-office requirements.
Accept a deferred resignation program, which promises full pay and benefits until September 30, 2025 while being exempt from in-person work requirements.

But is this offer legitimate? Does it provide the security it promises, or is it an attempt to quietly reduce the federal workforce? With legal uncertainties, budget concerns, and union warnings, federal employees need to carefully analyze the risks before making a decision.

In this guide, we break down the latest updates from OPM’s official website, union responses, and financial considerations to help you navigate this unprecedented situation.

Understanding the ‘Fork in the Road’ Program

The OPM deferred resignation program is now outlined on the agency’s website (OPM Fork in the Road). The program consists of:

Deferred Resignation: Employees who opt in will resign effective September 30, 2025, while continuing to receive full salary and benefits.
Exemption from In-Person Work: Participants are excused from the return-to-office mandate.
Retirement Flexibility: Employees scheduled to retire between October 1, 2025, and December 31, 2025 can extend their resignation date to match their retirement date.
Legal and Privacy Compliance: OPM asserts that the program complies with all federal records and privacy laws.
Formal Agreements Available: Employees who accept the offer can execute paperwork with their agency to document the terms.

Key Deadline: The last day to opt into the program is February 6, 2025.

New Clarifications from OPM

Recent updates provide answers to major concerns:

1. What Happens If There’s a Government Shutdown?

Employees in the deferred resignation program are still entitled to back pay under the Government Employee Fair Treatment Act of 2019 (31 U.S.C. 1341(c)(2)) in case of a shutdown.
However, paychecks could still be delayed during a prolonged government shutdown.

2. Can I Receive VERA if I Accept Deferred Resignation?

Employees aged 50+ with at least 20 years of service, or any age with 25 years of service, can receive Voluntary Early Retirement Authority (VERA) along with the deferred resignation offer, unless their position is exempted by their agency.
Employees should confirm eligibility with HR before assuming they qualify.

3. What If I Want to Retire Instead of Just Resign?

Employees who type “resign and retire” in their response email will have their retirement processed automatically.
However, if retirement is scheduled after December 31, 2025, they are not eligible for deferred resignation.

4. Is There a Formal Agreement Protecting Employees?

Yes. OPM now states that employees who accept the offer can execute a written agreement with their agency.
Employees should carefully review any agreement before signing.

Why Employees Should Still Be Skeptical

While these updates provide clarity, some concerns remain:

1. No Long-Term Legal Guarantee

OPM cites its authority under 5 U.S.C. § 1103(a)(1) and (a)(5), but legal experts argue this does not guarantee funding or enforceability of the program.
Unlike VERA or VSIP, this program lacks statutory protection, meaning future administrations could alter or revoke it.

2. Financial Risks & Budget Uncertainty

If government funding priorities shift, could this program be modified or canceled before September 30, 2025?
While backpay is legally required in a shutdown, there is no guarantee of timely disbursement.

3. Impact on Retirement Benefits

Employees who resign before reaching full retirement eligibility may reduce their pension benefits.
FEHB health insurance may be lost unless an employee meets eligibility for continued coverage.

4. Risk of Losing Reemployment Rights

Employees who resign under this program cannot revoke their resignation.
Returning to federal service later would require reapplying through the standard hiring process.

OPM fork in the road FAQ

Once you accept, your resignation is final and cannot be revoked.

If you meet the age and service requirements for retirement, you can still receive your pension. However, resigning too early could impact your pension calculations.

You may lose FEHB health insurance unless you meet the eligibility criteria for continued coverage.

Resigning voluntarily generally disqualifies you from unemployment benefits.

At RCS Financial Planning, we specialize in helping federal employees navigate retirement decisions, benefits analysis, and financial planning. Schedule a consultation today to ensure you make an informed choice before the February 6, 2025 deadline.
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What Should Federal Employees Do?

Request Written Documentation: Before opting in, ask HR for a formal agreement outlining all terms.
Verify VERA Eligibility: If retirement is a factor, confirm whether you qualify for early retirement benefits.
Assess Your Financial Situation: Consider how losing federal employment affects long-term savings, pension, and health insurance.
Consult with Experts: Speak with an HR representative, legal counsel, or a financial advisor before making a decision.

How RCS Financial Planning Can Help

At RCS Financial Planning, we specialize in helping federal employees navigate complex financial decisions. We provide:

Retirement Impact Analysis – Will resigning now harm your long-term financial security?
Federal Benefits Review – Will you lose key benefits by resigning early?
Tax-Efficient Withdrawal Strategies – If you take the resignation, how should you structure your income?

Don’t make this decision alone. Book a consultation today.

📅 Schedule Your Federal Employee Retirement Review Now

Final Thoughts: Should You Accept the Deferred Resignation Offer?

While OPM has clarified key details, the long-term risks remain. Federal employees should approach this decision cautiously, ensuring they have all necessary written agreements, financial protections, and expert advice before committing.

If you’re considering this offer, talk to a professional first. Schedule a consultation with RCS Financial Planning to make the best decision for your future.

📅 Book Your Consultation Now

This material is provided for educational, general information, and illustration purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing contained in the material constitutes tax advice, a recommendation for the purchase or sale of any security, or investment advisory services.