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Insights on deferred resignations, probationary periods, reductions in force and reassignments in the federal government

The second webinar in the Partnership’s Federal Employee Explainer Series addresses federal employees’ questions about how recent presidential actions related to workforce restructuring might affect them, focusing on deferred resignations, probationary periods, reductions in force and reassignments. 

The webinar features Valerie Smith Boyd, director of the Partnership’s Center for Presidential Transition® and guest Ronald Sanders, who served in senior human capital roles at several federal agencies. 

Here are some of the top questions they addressed:

What is a deferred resignation and how does it differ from a traditional buyout? 

To downsize or restructure their organization, agencies authorized by the Office of Personnel Management may offer buyouts, also known as voluntary separation incentive payments. These payments are offered to employees whose positions are surplus or whose skills are no longer needed.

The buyouts provide a lump sum of up to $25,000 (or the employee’s severance pay amount, whichever is less) as an incentive to resign voluntarily. OPM may also authorize Voluntary Early Retirement Authority which allows employees with a certain age and years of service to retire early. 

The “Fork in the Road” email sent to federal employees by the Trump Administration in recent weeks is not a traditional buyout offer but, instead, a “deferred resignation,” since it doesn’t include any guarantee of severance payments or any other financial notice, process or incentives that would come with a traditional federal buyout offer. 

What is the Voluntary Early Retirement Authority and who might qualify? 

The Voluntary Early Retirement Authority allows agencies undergoing restructuring to lower the age and service requirements for retirement to increase the number of employees who are eligible. OPM needs to approve this authority, and it is granted for a limited time. 

To qualify for VERA, a federal employee must be at least 50 years old with 20 or more years of service or have at least 25 years of service regardless of age.

According to OPM’s memorandum on the Legality of Deferred Resignation Program published on Feb.^. 4, 2025, employees who accept the deferred resignation offer may receive VERA. Aspects of the program are currently facing legal challenges.

What are probationary periods, how long do they last and what rights do federal employees have during this time? 

New permanent federal employees in the competitive service generally serve a one-year probationary period. Following the probationary period, they transition to a “career conditional appointment” until they reach three years of continuous creditable service to attain a permanent career appointment. Probationary periods in the federal government can apply to more than just new hires. 

Depending on an employee’s previous status prior to beginning a new job with a probationary period, federal employees in a probationary period have limited rights to appeal removals or disciplinary actions. However, prior federal service in a similar position may grant some probationary employees full due process and appeal rights before they complete their probationary period. 

To determine if you’re in a probationary period, review your SF-50 Notification of Personnel Action form.  It will show your tenure and type of appointment. 

What are reductions in force? 

Federal agencies use reductions in force to downsize their workforce due to reorganization, lack of work, shortage of funds, insufficient personnel ceiling, the exercise of certain reemployment or restoration rights, or for other reasons. 

Agencies must follow formal RIF procedures published by OPM, which outline the process of identifying which positions to terminate and how employees must be notified.  

Federal rules require layoff decisions to be based on employees’ tenure status, veteran’s preference, length of service, job performance and whether the employee is part of the competitive or excepted service.

Agencies must give written notice to employees designated for separation through a RIF and usually need to provide at least 60 days notice. Because of the many procedures associated with a RIF, it can often take weeks or months for agencies to complete the process. 

Who can be reassigned? 

A reassignment in the federal government is a change of an employee from one position to another, without promotion or demotion, while continuing to serve within the same agency. 

Agencies can use reassignments to avoid reduction in force actions, to better use an employee’s skills or to accommodate an employee’s request to move to another position. 

General Schedule employees may decline reassignments to a position in a different geographic area.  

Senior Executive Service members, however, have signed mobility agreements, meaning they can be reassigned more easily than other federal employees, often across different offices or even geographic locations. 

Stay informed

We encourage you to discuss your specific circumstances with your agency’s chief human capital officer or legal advisor. Maintain copies of your employee records, including your SF-50 (Notification of Personnel Action) and eOPF (Electronic Official Personnel File) and be sure to verify that the information in your file is correct. 

Stay tuned for the latest updates and join our upcoming webinars for in-depth discussions on these important changes and how they affect the federal workforce.  

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