How Could the March 13, 2025, Deadline Affect Federal Employees?

The Trump administration is working to cut waste in government, but there are implications for the federal employees whose lives are impacted.

The Office of Management and Budget (OMB) and the Office of Personnel Management (OPM) jointly presented a recent memo titled Guidance on Agency RIF and Reorganization Plans (ARRP) Requested by Implementing the President’s “Department of Government Efficiency” Workforce Optimization Initiative.

Two Things Can Be True at the Same Time: Cut Waste AND Doing Harm

It can be argued that this administration is precisely fulfilling its intended purpose, as per the Department of Government Efficiency (DOGE). This small group of Columbo-esque individuals is authorized by Presidential decree to investigate government agencies, empowered with the mission to identify, locate, and dismantle instances of “waste, fraud, and abuse.” A distant, Loch Ness type snapshot of its declared design seems to present a fantastic, even patriotic, endeavor devised to save taxpayer dollars.

This seemingly noble endeavor, however, is simultaneously negatively affecting numerous federal employees, their families, and their communities. This serves as an illustration of how potentially good intentions can lead to two distinctly opposite and impactful outcomes.

Few individuals, except those who are excessively gorging on the federal tax teat, could argue against the desire to eliminate the means, methods, or actors who exploit American citizens’ contributions for their own gain. The objective of the DOGE initiative is not a subject of contention in this column. However, I will challenge its oft-described “callous” implementation.

Job (as in the Book of the Bible) Filcher (not his real name)

Job, a 55-year-old federal employee with 24 years of service, is a GS-13. His wife, age 45, has been with him for 15 years and doesn’t contribute financially. They have three children, ranging from 6 to 12. Despite lacking formal education or transferable skills, Job has advanced his career through hard work, dedication, and collaboration with management and colleagues. He declined the early buyout option. 

The Clock Is Deafeningly Ticking

When Job heard about the memo alluding to March 13th, his already mounting concerns about his future as a federal employee were further intensified.

In part, this memo states, “…’agency Heads shall promptly undertake preparations to initiate large-scale reductions in force (RIFs), consistent with applicable law.’ President Trump also directed that, no later than March 13, 2025, agencies develop Agency Reorganization Plans.”

It further adds, “ARRPs should also list the competitive areas for large-scale reductions in force, the RIF effective dates (which may be a date prior to when the plan is submitted), the expected conclusion of the RIFs, the number of FTEs reduced, and additional impact of RIFs such as cancellation of related contracts, leases, or overhead.”

The implications seem obvious enough. The administration is not merely looking to cut hidden, fraudulent, or criminal costs from federal expenditures. They are looking to cut federal full-time employees (FTEs). Moreover, they are pressing to implement those employment cuts as quickly as possible. The first step in this process is a reduction in force (RIF) and reorganization plan supplied by each federal agency by March 13th, 2025.

The singular message to federal employees appears to be one of dispassionate and unconcerned apathy. 

Upon recognizing the intended outcome of this directive, Job immediately sought a Federal Retirement Readiness Review of his financial situation. Like many other federal employees, his agency had already been targeted for substantial reductions. He’s convinced that his continued employment within the federal government is quickly coming to an end.

During Job’s review, it was discovered:

  • If he leaves federal service this year, his monthly income, encompassing all available fixed sources, will significantly fall short of meeting his family’s monthly expenses by over $2,200.
  • Downsizing his home is not an option at this time.
  • His TSP has a balance of $780,000. This balance may be available for short-term distributions to cover the monthly shortfall. However, it may not last throughout his retirement years if he utilizes these savings as an established long-term income alternative.

Outside of the retirement review, Job has found that the job outlook in his community is scarce. Job currently earns approximately $60 per hour. Thus far, the best “outside” alternative he has found would potentially start Job off at $26 per hour. This reduced opportunity would come without comparable federal benefits such as a pension, matching retirement account (like the TSP), “suitable” healthcare options, or substantial annual leave (he would get two weeks after one year) or sick leave (three days per year is what is offered).

Do the Ends Justify the Means?

Perhaps at least part of the problem with implementing the DOGE initiatives lies in what could be perceived as an “ends justifying the means” mindset—a belief that any pain inflicted on the average federal employee is worth it to achieve DOGE’s ultimate goals. Those involved have been observed to be (unfortunately) equally celebratory in finding wasteful programs and forcing long-term federal employees to abandon their careers.

When viewed through the eyes of feds like Job, this enthusiastic approach might be too darn eager. Cutting costs is a valuable and noble endeavor. However, it could be equally effective if empathy were incorporated into the process. 

One can’t help but wonder if the sensitivity aspect is lacking because those in charge are not directly affected by late-life transitions. When you’re a “young genius” (or anyone earning a livelihood that isn’t at risk of elimination) working on a project of such grand scale, it’s easy to overlook the humans (and fellow Americans) harmed by your actions.

Balance, Balance, Balance

Hopefully, DOGE will emerge victorious in its efforts to root out and eliminate fraud and waste. But, taking a heavy hammer to every federal employee (nail) may be terribly short-sighted and unwarranted. 

Admittedly, it may be likely that every federal employee knows federal employees who are poor members of the federal workforce. Maybe they “game” the system to receive a paycheck. Perhaps they advanced beyond their abilities yet kept the heightened pay level due to a flawed structure. But, to aim the next swing at whatever nail is nearest is an indiscriminate blow to many employees whose soon-to-be flattened heads are, frankly, worth protecting.

Go ahead DOGE, find the nails that are not producing well or that need to be pulled, whacked, or counter-sunk, but leave the efficient fasteners (tacks, staples, and screws) in federal service. My guess is a top-notch employee will likely more than pay for their employment.

Yes, it is possible to have a grandiose, financially positive plan, project, or purpose and still attempt to create net negative (harmful) outcomes. It may simply be too darn easy to measure success solely in terms of monetary gain. However, what are the long-term costs of those dollars if a balance between intellectual pursuits and heartfelt compassion is not achieved? Moreover, it is crucial to consider the lives that will be left in the wake of DOGE’s successes. For the feds like Job, DOGE’s success is measured not just by lines in a ledger but also by family and future retirement devastation. 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  Investing involves risks, including the loss of principal.  No strategy assures success or protects against loss. Silverlight Financial, Infinity Financial Services, and its affiliates do not provide tax, legal, or accounting advice. This material is not intended to provide and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. For a list of states in which I am registered to do business, please visit www.silverlightfinancial.com. Securities offered through Infinity Financial, member FINRA/SIPC. Investment Advisory Services are offered through Infinity Financial Services Advisory, an SEC Registered Investment Advisor.

About the Author

Randy Silvey is the published author of You FIRST, Federal Employees Retirement Guide, one of the bestselling books of its kind on Amazon and Kindle. For over 18 years, he’s been educating and guiding Feds in pursuing wealthier retirement lifestyles. Randy can be reached at 816-524-1515 or visit his website at www.silverlightfinancial.com. Securities offered through Infinity Financial Services. Member FINRA/SIPC.