Deferred Resignation or Furlough?

The Office of Personnel Management (OPM) in its offer to federal employees on the deferred resignation program writes:

This program begins effective January 28 and is available to all federal employees until February 6. If you resign under this program, you will retain all pay and benefits regardless of your daily workload and will be exempted from all applicable in-person work requirements until September 30, 2025 (or earlier if you choose to accelerate your resignation for any reason). 

The Deferred Resignation Program is an alternative for employees who are otherwise facing potential furloughs or layoffs. With deferred resignation, employees can avoid the uncertainties associated with furloughs, such as temporary non-pay status, while receiving full pay and benefits until their resignation date. This program provides financial stability and exempts employees from in-person work requirements during the administrative leave period. 

In other words, in deciding whether to accept the deferred resignation program offer, employees may be weighing getting paid through September 30, 2025, or the uncertainty of not getting paid during a furlough.

As an alternative to deferred resignation or a buyout, OPM has listed these reforms facing the federal workforce. These requirements will be:

• Return to work in the office;
• The government will have a performance culture with enhanced performance standards at every level;
• Employees will be working in a smaller workforce with RIFs, furloughs and reclassification (Schedule F) as part of the working environment;
• Enhanced standards of conduct.

According to one report, the Trump administration has warned federal employees that they could be furloughed if they do not accept a buyout offer by February 6.

OPM has referenced furloughs as one possibility along with a reduction-in-force, elimination of agency organizations or the possible elimination of some entire agencies. Some of these options would require legislative action while some reorganizations or restructuring of agencies can likely be accomplished with an executive order.

What is a Furlough?

OPM defines a furlough as placing an employee in a temporary non-duty, non-pay status due to lack of work or funds, or other non-disciplinary reasons.

Many employees probably recall furloughs occurring during a government shutdown. That experience is not directly applicable. These furloughs that would occur would be administrative furloughs.

An administrative furlough is a planned event by an agency designed to absorb
reductions necessitated by downsizing, reduced funding, lack of work, or any other budget
situation other than a lapse in appropriations.

his type of furlough is typically a non-emergency furlough in that the agency has sufficient time to reduce spending and give adequate notice to employees of its specific furlough plan and how many furlough days will be required.

Will You Get Paid During a Furlough?

An administrative furlough, instead of a government-funding furlough, means you will not be paid. OPM refers to this as a non-duty, non-pay status.

Stated bluntly, if you opt for the deferred resignation, the government is saying to employees you will be paid through September 30th. If you do not accept the offer of resignation under this program, and you are furloughed, you will not be paid.

Unions Go To Court

Several unions have banded together and filed a lawsuit last Tuesday to block the administration’s plan to offer buyouts (deferred resignations) to federal employees. The unions allege that the government cannot guarantee the plan will be funded, it has not considered the results of mass resignations by federal employees, and that it does not have the legal authority to implement this plan. 

How will the unions fare in their pursuit to halt the deferred resignation plan? What will happen to those who have accepted the offer from OPM?

Will an employee opt for a union urging employees not to accept the OPM plan? Will those not accepting the offer find out they will not get paid if they are furloughed? Which approach offers the most job security and best economic outcome?

In part, the answer depends on individual circumstances. Are employees who were thinking of leaving anyway more likely to accept the offer? Do the unions offer more confidence to employees than the government, or will their actions be harmful to employees who may decide to reject the offer based on their recommendations?

It offers employees a stark choice. The deferred resignation plan’s outcome, the lawsuits, and the proposals to restructure the size and cost of government and the missions to be performed by the government may hang in the balance.

Summary

Some federal employees are faced with a tough choice. It is tough because the answer for the best outcome varies for each person. 

Do they believe and trust the unions representing bargaining unit employees? Do they believe and trust the government that is employing them? Will the union’s advice to stay the course yield better results or economic disaster for some? Will the administration’s offer for deferred resignation and warning about the dangers inherent in not taking the program be any better for many employees?

Stay or go? No one knows the outcome of this struggle or which decision will be the best for employees making the decision.

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