Is the “fork in the road” offer worth it?

I’m sure you got the memo. President Trump is offering something that appears to be 8 months’ severance pay. You could stop working on Feb. 6th, collect payment and full benefits until the end of September, and then end your federal employment at the end of September.

Should you do this?

First of all, please don’t panic. Don’t panic resign. Don’t panic retire. Don’t panic sell your TSP. Also, let’s not make rash decisions based on anger and defiance. Some people are in a huff, and they may jump ship just to make a point and show that they’re done with politics and free of this drama.

Let’s be as level-headed as possible.

And, let’s be clear – this is not an offer for early retirement. If you take this offer, you will not get retirement benefits at the end. The only feds that can collect retirement benefits at the end, are those who have attained retirement eligibility and apply for retirement. If you haven’t attained retirement eligibility, you will not receive retirement benefits, which also means you will lose your FEHB.

If you are not going to be eligible to retire by the end of September, I would not jump at this offer. They might come back and offer an early retirement (VERA) in which case you may be able to collect full pension and keep your FEHB. Of course, I realize they might NOT offer early retirement (VERA) and they may just have a RIF without early retirement benefits. That would stink, and that is a real risk. If you are worried about this risk, you should definitely be networking and seeking new employment opportunities now, regardless of this offer. You should also crunch your financial numbers to see what salary you will need at your new job to support your future goals.

If you will be eligible to retire by the end of September, you need to calculate whether you can afford to retire. That’s going to depend on the rest of your financial situation. You should definitely crunch your numbers. If you will be eligible to retire, and you can afford to retire, then this offer just sweetens the retirement package.

I assume more news will be coming, and I’ll try to keep on top of it, to help you make the most informed decisions possible. If you need my assistance, please email me. stephen@stephenzelcer.com

Wishing you all the best,

Stephen Zelcer

StephenZelcer.com

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