OPM’s “Fork in the Road” Email: Key Updates and What Federal Employees Need to Know

What Is the OPM Deferred Resignation Program?

On January 28, 2025, the U.S. Office of Personnel Management (OPM) sent an email to federal employees titled “Fork in the Road.” This email introduced a Deferred Resignation Program, allowing eligible employees to resign effective September 30, 2025, while remaining on full salary and benefits until that date.

This program is not a buyout (VSIP) but instead a paid transition period designed to reduce the federal workforce. Employees who accept will eventually separate from service but will continue receiving full pay and benefits in the meantime.

Is the OPM Deferred Resignation Offer Legitimate?

There has been speculation about whether this offer is valid and enforceable. OPM has officially confirmed that:
✔️ The Deferred Resignation Program is lawful and will be honored government-wide.
✔️ Employees cannot be removed via reduction-in-force (RIF), termination, or furlough before September 30, 2025.
✔️ Accepting the offer locks in pay and benefits, making it a secure option for those who qualify.

How Does the Deferred Resignation Affect My Retirement?

If you’re considering this offer, it’s essential to understand how it impacts your FERS pension, health insurance, and TSP contributions.

Will This Affect My FERS Pension?

✔️ If you are already eligible for immediate retirement, the program won’t impact your annuity.
❌ If you are not yet eligible, resigning could delay when you can start receiving your pension.

Can I Still Get Federal Health Insurance (FEHB)?

✔️ You will keep FEHB coverage through September 30, 2025 while on paid leave.
✔️ To continue FEHB into retirement, you must meet the 5-year rule and retire immediately after the deferred resignation period.

Will My TSP Contributions Continue?

✔️ Yes. While on paid administrative leave, TSP contributions and agency matching will continue as usual.
❌ Once separated, you will no longer be able to contribute but can manage withdrawals based on standard TSP rules.

Will I Still Get Paid If the Government Shuts Down?

A major concern among federal employees is whether a government shutdown or lapse in appropriations could interrupt payments. OPM has clarified that:
✔️ Employees in the Deferred Resignation Program will continue to receive pay through September 30, 2025.
✔️ If a shutdown occurs, participants are still eligible for back pay under the Government Employee Fair Treatment Act of 2019.

Can I Take a Private Sector Job While on Administrative Leave?

Yes. Employees who accept the deferred resignation offer may accept private-sector employment while on paid administrative leave. However, any job must comply with federal ethics rules to avoid conflicts of interest.

Should I Accept the OPM Deferred Resignation Offer?

This is a major decision, and it’s not the same for everyone. Here are key considerations:

Who Should Accept This Offer?

✅ Employees who are already eligible for retirement and want a smooth transition.
✅ Those who don’t need additional federal service time to maximize benefits.
✅ Individuals who want to explore private-sector opportunities while still receiving a federal paycheck.

Who Should Consider Staying?

❌ Employees who need more service years to qualify for full retirement benefits.
❌ Those who are not financially prepared to leave federal service.
❌ Employees who want to continue accruing higher pension benefits or increase their High-3 salary.

What Are My Other Options Besides Deferred Resignation?

While the Deferred Resignation Program is one option, it’s important to compare it to other federal separation programs:

Can I Retire Early with VERA (Voluntary Early Retirement Authority)?

Some agencies are requesting Voluntary Early Retirement Authority (VERA) to provide employees with an immediate pension.
✔️ You can retire at age 50 with 20 years of service OR any age with 25 years.
✔️ Unlike deferred resignation, VERA allows you to collect your FERS pension immediately.

Does My Agency Offer VSIP (Buyout Payments)?

Some agencies may offer a VSIP buyout, which provides up to $25,000 before taxes as an incentive to resign or retire. This could be a better financial option than deferred resignation, depending on your circumstances.

Should I Just Stay in Federal Service?

If you need more service time, a higher High-3 salary, or continued benefits, remaining in your job may be the best decision.

OPM fork in the road FAQ

The Deferred Resignation Program allows eligible federal employees to resign effective September 30, 2025, while remaining on full salary and benefits until that date. Employees will be placed on paid administrative leave after transitioning their duties.

Yes. OPM has confirmed that the Deferred Resignation Program is lawful and will be honored government-wide. Once an employee accepts the offer, their agency cannot revoke it.

Yes. If you become eligible for retirement before September 30, 2025, you can retire at any time. Your retirement will override your deferred resignation, and you will receive your pension according to standard FERS or CSRS rules.

Yes. Employees in the Deferred Resignation Program will continue to be paid through September 30, 2025, even if there is a government shutdown. They are also eligible for back pay under the Government Employee Fair Treatment Act of 2019.

If you are already eligible for immediate retirement, this program will not impact your pension. However, if you need more service time to qualify for full retirement benefits, resigning could delay when you can start receiving your annuity.

Yes. Employees can work in the private sector while on paid administrative leave, as long as they comply with federal ethics rules.

You will maintain FEHB coverage through September 30, 2025. If you retire immediately after, you can continue FEHB into retirement if you meet the 5-year rule. Otherwise, you may need to use COBRA or private insurance.

Yes. While on paid administrative leave, you will still receive TSP contributions and agency matching just as if you were actively working.

Possibly. OPM has indicated that agencies may extend an employee’s resignation date if they will reach full retirement eligibility later in 2025. Check with your agency’s HR department for confirmation.

It depends on your financial situation, retirement eligibility, and career plans. If you’re unsure, it’s best to consult a financial planner to assess your options and ensure you’re making the right decision for your future.
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How to Decide If This Offer Is Right for You

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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.

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