Missed the Deferred Resignation Deadline? Here's What Smart Federal Employees Are Doing Next

Sorting through your federal retirement options can feel like learning a new language—especially when terms like "Deferred Resignation," "VERA," "Postponed Retirement," and "Deferred Retirement" get tossed around as if they mean the same thing. They don’t—and knowing the difference could make a huge impact on your future.

What Are Your Options If You're Leaving Federal Service?

Now that the deadline for the Deferred Resignation program has passed, a lot of federal employees are wondering: "So... what now?" If you missed the offer or are still trying to figure out what’s next, let’s walk through the four main federal retirement pathways—and what they really mean for you.

1. Deferred Resignation Offer: A Unique Opportunity

In early 2025, some federal employees got an exclusive opportunity to resign by September 30, 2025, and keep their current salary and benefits until then. It also gave folks the freedom to bypass Return-to-Office rules and pick an earlier exit if they wanted.

Heads up: This program is now closed and probably won’t come back in the same way. But as we know, agency policies are always shifting—so it’s wise to stay tuned.

2. Voluntary Early Retirement Authority (VERA)

VERA isn’t something you can apply for on your own. Your agency has to offer it—and it needs the green light from OPM first.

Here’s what makes VERA unique:

• Temporarily lowers the age and service requirements to retire

• Designed to help agencies restructure or downsize without layoffs

• Applies to both CSRS and FERS employees

If your agency isn’t offering VERA, it’s off the table for you—even if you meet all the other criteria. But don’t worry—there are still other ways to make your exit.

3. Immediate Retirement Under FERS

You’re good to go for an immediate pension if you meet one of these:

• MRA + 30 years of service

• Age 60 + 20 years of service

• Age 62 + 5 years of service

You can also retire at your MRA with 10-29 years, but that comes with a 5% pension reduction for every year you're under 62.

Minimum Retirement Age (MRA) Chart:

Year of Birth MRA Before 1948 55 1948-1952 55-55 and 10 months 1953-1964 56 1965-1969 56-56 and 10 months 1970 and after 57

4. Postponed Retirement

Let’s say you qualify for immediate retirement but don’t want to tap into your pension just yet. Postponed retirement lets you step away now and delay your pension to avoid that early retirement penalty.

What’s great about it:

• You can dodge permanent pension reductions

• You may get FEHB back when you start drawing your pension

5. Deferred Retirement

Leaving before you're eligible for full retirement—but with at least 5 years of creditable service? You still have options.

Key Takeaways:

• You can claim your pension later—at age 62, or MRA with 10+ years

• But no FERS supplement or FEHB

Why These Distinctions Matter

Each option changes:

• When your pension starts

• How much you receive

• Whether you keep your health insurance

• If you're eligible for the FERS supplement

There’s no one-size-fits-all solution here. It’s all about what fits your life, your goals, and your finances.

Final Thought: Let’s Make a Smart Move Together

Federal retirement decisions are a big deal—and they’re not something you want to leave to chance. If you’re confused or just need someone to walk you through the options, I’m here to help.

I don’t charge for the initial consultation, because I believe in giving you clarity before you commit to anything. And trust me—making the wrong move could cost you a whole lot more than time. Let’s get it right from the start.

You’ve worked hard. Let’s make sure your retirement works just as hard for you. For more information on your retirement options visit: https://federalrifresources.com/home

Gigi Bodwin is the president and founder of Bodwin Financial Solutions (BFS), a trusted name in federal retirement planning for over a decade. As a Federal Retirement Specialist and Certified Financial Education Instructor (CFEI), Gigi brings extensive understanding of federal benefits to every client she serves.