What Is Deferred Compensation? How Do I Continue to Work at Home?
Federal employees who may be coming into the office and turning on their computer today may be wondering if they are still living in the same world they were living in yesterday.
As of today, federal employees are still working for the same federal government they worked for yesterday. After reading the news (including a nighttime article from FedSmith.com explaining how their world changed overnight), it will not seem like the same Federal Government they worked for yesterday.
FedSmith predicted buyouts would become available, perhaps sooner than expected. We advised federal employees to think about whether they would take a buyout when it was offered, what it would mean for their family, and what it would mean for their career prospects. The reason for thinking ahead is that the buyouts appear unexpectedly and would require a very quick decision.
We certainly had no idea that a buyout (different name but more favorable characteristics than usual) would come in an email sent to all federal employees at the same time, allowing them to avoid returning to the office, continue on administrative leave for as much as eight months, and they could accept the offer within seconds to a new email address created by OPM and clearly noted in the email instructions.
With this background, the author of this article received email last night from readers asking if this program was the work of a spammer trying to collect personal information on government employees.
While it sounds too good to be true for some federal employees, this may be your lucky day. It is not the work of a hacker. It is a real program and offers real, substantial benefits. Read on for more.
Reporting Requirements for Federal Agencies
The Office of Personnel Management (OPM) requires all agencies to submit the following information each week through September 30, 2025. The reports are to go to [email protected] by every Friday at 5 PM.
- The number of employees who have offered their resignations as part of the deferred
resignation program; - The number of agency employees who are part of the deferred resignation program
placed on administrative leave; - The number of agency employees who have applied for early and normal retirement
since January 27, 2025; - The number of agency employees who have actually resigned (and whether or not such
employees had previously submitted accepted Deferred Resignation) beginning January
27, 2025; - The number of employees who have sought to rescind their resignations, and the status
of each request; - The number of applications to extend the deferred resignation deadline (beyond
February 6); - The number of applications from potential retirees to extend the deferred resignation
end-date beyond September 30, 2025 (to accommodate impending retirement); and - The roles and number of personnel excluded by your agency from the deferred
resignation program.
Email Sent to Federal Employees by OPM
Employees of the federal government are not used to seeing an email come directly from OPM to them individually. Moreover, the instructions sent are usually written in “bureaucratese” (noun: refers to a style of speech or writing characterized by jargon, euphemism, and abstractions, held to be typical of bureaucrats) and requiring a significant level of concentration to interpret and apply correctly.
Moreover, by the time instructions are usually received by individual employees, the rumors have been flying for some time that these instructions were to be distributed by each agency and approximately what would be contained.
This week, none of these typical experiences of government employees were applicable.
Federal employees, virtually all federal employees, received an email from OPM. The instructions read:
Upon review of the below deferred resignation letter, if you wish to resign:
1) Send an email to [email protected] from your government account. Only an email from your .gov or .mil account will be accepted
2) Type the word “Resign” into the “Subject” line of the email. Hit “Send”.
The instructions were simple, easy to understand, and could be accomplished in seconds. Even more surprising, the topic was important and relevant to all employees. It was not vague, confusing, contradictory, and largely irrelevant to most recipients.
Instead, it was saying you can resign from your federal position in a matter of seconds. Here is how to do it.
Devil (or the Angel) Is in the Details
Many federal employees have been commenting on social media about the terrible consequences about to descend on the American public as a result of federal employees being told to report to government offices to continue to be employed by the federal government.
According to some commentators, the requirement to return to an office for work would destroy the government workforce, lead to less productivity, add to commuting time, increase pollution on our planet, destroy personal relationships, and generally make life miserable for federal employees.
Unions were rising up with visions of clenched fists and in full battle mode while vowing to fight the draconian expectations using every available avenue to protect the rights and dignity of the federal workforce. They announced they had been working with the kinder, gentler Biden administration appointees to negotiate labor contracts that would leave people working at home regardless of what the voters wanted and regardless of what edicts would be forthcoming for the future political leaders that would be entering the workforce—while decrying allegations that a deep state existed that would work against the incoming administration because it was an impartial, apolitical workforce that existed to serve the administration in power.
Instead, employees were being told they could make a quick decision, resign from the federal government by February 6, continue on the job until September 30, 2025, with full pay and benefits while on administrative leave (or resign earlier if they want to accelerate their resignations for any reason), and continue to stay home instead of working in an office.
And, reading further in the details of this resignation opportunity:
Nothing in the resignation letter prevents you from seeking outside work during the deferred resignation period. You should ask your agency’s human resources team about what restrictions, if any, exist for employees who have resigned but remain employed (including on administrative leave) by their employing agency.
What’s the Catch?
This may be the catch that will have an impact on some readers.
This is what the federal government wants in its workforce:
The federal workforce should be comprised of employees who are reliable, loyal, trustworthy, and who strive for excellence in their daily work. Employees will be subject to enhanced standards of suitability and conduct as we move forward. Employees who engage in unlawful behavior or other misconduct will be prioritized for appropriate investigation and discipline, including termination.
People working in conjunction with the federal government think the federal workforce has some employees who do not exhibit these traits and characteristics. They want to allow these employees to leave under very favorable terms. Perhaps they have been reading comments on social media that led them to this conclusion.
The offer is on the table. If it is appealing and meets the hopes and desires of federal employees, act quickly. Some will think they have the equivalent of winning the lottery. That happens. Take advantage of it.
Some may feel insulted that this is occurring because of the perception that some hold of the federal workforce. If that is the case, these employees can continue to work hard if they are willing to meet the requirements set out by OPM in its guidance.
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.
In fairness, this short list is written, in part, by the author but based on the OPM guidance. It accurately reflects what the government anticipates working for Uncle Sam may be like in the near future.
