Agencies are offering employees in specific occupations deferred resignations and early retirements this month. The VA is allowing certain noncritical employees the opportunity to resign or retire under its deferred resignation/retirement (DRP) program by September 30.
Employees who accept the deferred resignation offer will retain all pay and benefits until September 30 and are exempt from any return-to-office requirements.
The departments of Agriculture, Transportation, Defense, Energy, Housing and Urban Development, and the Veterans, General Services, and Small Business Administrations offer these options to select groups of employees. Other agencies are joining this effort.
The Department of Transportation exempted essential employees working in public safety or other categories. This includes air traffic controllers, safety inspectors, airway transportation system specialists, and others in critical occupations.
Agency notification letters are tailored to each agency’s specific requirements. Each agency has different dates for accepting deferred resignations and procedures for applying for a VERA.
RIF NOTICES
These letters are a prelude to a pending Reduction in Force (RIF) and provide options to reduce or eliminate the negative impact a RIF will have on employees. Those who take advantage of deferred resignations must sign up for the program in April.
The Veteran’s Administration is cutting 15% of its workforce, 70,500 employees in non-critical occupations, and other agencies are looking at similar reductions. VA employees can opt in from April 7 to April 30. The DOT only offered a seven-day window that ended April 7.
Approximately 15% of the workforce is eligible for regular retirement, while another 15% may meet the requirement for early retirement under the VERA program. The more employees who take advantage of deferred resignations and regular and early retirement, the fewer RIF notices will have to be issued.
ALTERNATIVE RETIREMENT OPTIONS
Employees have several retirement options to consider over and above the Fork in the Road and VERAs. Depending on your time in service and age, many can take advantage of discontinued, deferred, or postponed retirements, and Minimum Retirement Age (MRA) plus 10 for FERS employees.
Deferred Retirement Option
Those forced out may still be eligible for a deferred retirement if they don’t withdraw their FERS retirement contributions. Many aren’t aware of this benefit when they leave voluntarily or are forced out by a RIF.
It’s essential to keep your last pay and leave statement as confirmation of your status and eligibility to collect an annuity at the ages listed below. Also, this isn’t automatically triggered; you must apply for a deferred retirement when eligible, and OPM will not contact you when you reach your eligibility date.
This option allows those who leave Federal service before they meet the age and service requirements for an immediate retirement benefit to apply for deferred retirement benefits. You must have completed at least 5 years of creditable civilian service to be eligible, and you may receive benefits when you reach one of the following ages:
- 62 with 5 years of service
- 60 with 20 years of service
- Minimum Retirement Age (MRA) with 30 years of service
- Minimum Retirement Age (MRA) with 10 years of service
END NOTES
Not all employees have the opportunity to apply for these programs. Each agency identifies eligible occupations and employees in those groups who are eligible. Like the FAA and VA, other agencies will notify eligible employees with detailed specifics. The VA notice was 10 pages long and provided five pages of occupational series exempted from this program.
If you receive a RIF notice, it isn’t the end of the world, even if you may think it is at the time. It’s essential to research your options thoroughly and review OPM’s RIF guidance to understand how the process works and what your rights are.
For example, if you receive a RIF notice, you may be able to bump another person with less seniority than you. The four criteria that are used during a RIF are:
- Tenure of employment (e.g., type of appointment);
- Veterans’ preference;
- Length of service; and
- Performance ratings.
Most downsizing was accomplished during previous reorganizations through early retirement offers and non-critical vacancies not being filled. Typically, agencies have a fair number of unfilled positions that will also help to moderate the impact of a 10 to 15% drawdown in staffing levels. Hopefully, many will take advantage of these offers and lessen the need for RIF notices; time will tell.
