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Wednesday, December 3, 2025

Beware the "Deferred Resignation" Offer: A Legally Dubious Proposal for Federal Employees - Just Security

Filed under:

executive branch, Executive Power, Government Workforce, OPM, Trump administration second term

On Tuesday, the Office of Personnel Management (OPM) released a memorandum outlining the details of a “Deferred Resignation Program.”

According to OPM, the program allows federal employees to submit their resignation by Feb. 7, 2025, with an effective date of Sept. 30, 2025. OPM says employees who opt for this arrangement will remain on payroll and continue receiving their full salary and benefits until their resignation becomes effective.

The memorandum also states that agencies may place employees on administrative leave or adjust workloads but does not guarantee these conditions. Some initial reports suggested that this offer includes Voluntary Separation Incentive Payments (VSIPs), commonly known as “buyouts.” However, there is no mention of such payments in the actual OPM memorandum regarding the deferred resignation. Employees who resign under this offer should not expect any severance or incentive beyond continued employment until September.

Despite OPM’s framing, the legal authority for such an arrangement remains unclear, raising significant concerns about potential violations of federal employment law, unwise public policy, and budgetary constraints.

Unclear Legal Basis for Administrative Leave

OPM suggests that employees who opt for deferred resignation may be placed on paid administrative leave during this period. This raises questions under 5 U.S.C. §...



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