The Department of Veterans Affairs (VA) is offering employees the option to resign and receive pay through September 30—if they submit a “deferred resignation” by February 6. This follows a government-wide announcement from the Office of Personnel Management (OPM) outlining a similar program for federal workers.
VA Acting Secretary Todd Hunter assured employees in an email that the offer is “valid, lawful, and will be honored by VA.” Those who accept it won’t have to work during the deferred resignation period and can take non-governmental jobs in the meantime. However, the offer may not be available to employees in essential roles such as healthcare and public safety.
Funding Uncertainty Raises Red Flags for VA Employees Offered Deferred Resignation
Despite Hunter’s reassurances, Sen. Patty Murray (D-Wash.) warned that Congress has yet to authorize funding for these payments. With the government only funded through March 14, there’s no guarantee employees who resign will actually be paid through September. Additionally, those who accept the offer may not be able to reclaim their positions if they change their minds.
A Shift in VA Employment
This resignation offer follows the VA’s hiring surge over the past two years, which saw 61,000 new hires in 2023 alone. Now, the department is looking to trim 10,000 full-time positions due to improved retention and budget constraints.
A federal hiring freeze, issued via executive order in January, complicates the situation further. While 304,000 VA positions—mostly in healthcare and public safety—are exempt, all other vacancies will remain unfilled, and job offers extended to new hires who haven’t onboarded by February 8 will be rescinded.
What’s Next for VA Employees in Regard to VA Employees Offered Deferred Resignation?
The VA is also seeking approval for voluntary early retirement options, though details remain unclear. Employees considering deferred resignation should weigh the risks, including potential funding gaps and the possibility that their roles may not be available if they reconsider.
As always, Chad Barr Law remains committed to staying informed on VA issues and advocating for veterans navigating these uncertain times. We encourage you to weigh all of your options and make the best decision for you and your family! If you have any questions about how these decisions may impact your VA Disability Benefits, our team is here to answer them.
