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BIG and BIG Members Cannot Provide Legal Advice.
This Information Is Provided For Information Only.
Frequently Asked Questions (FAQs) – Deferred Resignation Program (DRP)
What is the deferred resignation program?
The program places Federal employees on administrative leave for an agreed upon amount of time. The employees’ resignations become effective when the administrative leave ends. In other words, employees can get paid (via administrative leave) while they look for a new job or make other plans.
Employees can also use the deferred resignation program to get placed on administrative leave until they are eligible for retirement.
Is deferred resignation a good thing or a bad thing?
Each employee should decide whether deferred resignation is a good thing.
Example of Good Use: A new grandmother wants to retire to spend more time with her grandbaby. She won’t be eligible for retirement until the end of the year. Her agency agrees (in writing) that she will be placed on administrative leave starting in March until the end of the year, and at the end of the year her retirement becomes effective.
Deferred resignation was a wonderful option for this Federal employee because:
- She planned on retiring in December prior to being offered the deferred resignation.
- She gets to stop work sooner than planned.
- She will receive administrative leave without having to work while still serving as a Fed.
- She will receive her full benefits including health benefits when her retirement takes effect.
- Her DRP agreement was in writing.
What factors should I consider in deciding whether to submit a deferred resignation?
Only you can decide whether DRP is right for you. We’ve included a list of questions to help you make your decision:
- How long can you go without working after your resignation becomes effective?
- Do you need to work?
- What is the job market like where you live?
- How long is it taking for others in your field to find jobs?
- Will you have enough resources to financially survive when your resignation becomes effective?
- Do you have savings?
- Will you immediately need a new job?
- Are you eligible for retirement or early retirement?
- If you’re eligible for retirement or early retirement, will you still need to work?
- Will you have health insurance when your resignation becomes effective?
- Do you have special health issues?
- Do you have concerns about changing medical providers if your new health insurance doesn’t cover your current medical providers?
- Are you ok with procuring your own health insurance?
- Do you work in diversity, equity, inclusion and acceptability (DEIA) or an area that has been targeted by the current Presidential administration?
- Do you have a reason to believe that your position or office will be eliminated?
There are no right or wrong answers. There is no way to predict the future of your agency. You will have to weigh the benefits and risks of taking the DRP or continuing to work.
What about my thrift savings plan?
You should think carefully about what to do with your TSP:
- If you plan on taking money out of your thrift savings plan (TSP) you’ll pay a penalty if you’re separated from federal service before you turn 55 years old.
- Because tax rules are complex, you may want to speak with a tax advisor before taking money from your TSP account.
- Information for TSP Participants Leaving Federal Employment (February 2025)
Can I work while on administrative leave?
Yes. You can work while on administrative leave. However, you will still be a Federal employee and you will be subject to your agency’s ethics requirements. For example, if you are a contracting officer, there is a conflict of interest if you work for a government contractor on a contract that you awarded.
Are there other things I should know?
Yes. Here are some other things to consider:
- You should make certain that your agency agrees to your resignation in writing.
- If you don’t understand the DRP or your communications with your agency, please get assistance from an attorney or other trusted advisor if necessary.
- Don’t accept the DRP offer if you’re not 100 percent sure. Once you accept the DRP offer, you may not be able to change your mind.
- If you are considering deferred resignation and you don’t plan to return to the government within five years, ask your agency if a Voluntary Separation Incentive Provision (VSIP) is available. The VSIP for most civilian agencies is $25,000, but some agencies have higher caps. See OPM.GOV for Top 10 Frequently Asked Questions Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Payments (VSIP).
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