In late 2020, the Office of Personnel Management (OPM) began drafting new rules for prioritizing which employees to keep and which ones to cut in a Reduction in Force (RIF).
Traditionally, only a small percentage of federal employees are separated from service each year through a Reduction In Force. However, these job cuts tend to happen more often when a new presidential administration takes office.
Then there’s the Early Retirement Offer. Many agencies utilize an Early Retirement Offer to avoid a Reduction in Force. In fact, under Postmaster General Louis DeJoy, the Postal Service is offering Early Retirement Offers, effective April 30th, 2021.
Though you may have a retirement date in that’s mind five years or more down the road, it’s important to plan for the unexpected. Even if you have a retirement plan in place, consider a deep review to help ensure you’re prepared for an Early Retirement Offer or RIF.
Work with a retirement advisor with experience in federal benefits to discuss:
- TSP Catch-Up Contributions or a deposit for creditable service
- Calculating your years of creditable service
- Meeting the 5-year FEHB coverage rule to your continue health insurance in retirement and much more.
Though the idea of retiring early may sound like a good idea, if you’re not fully prepared, you risk a reduction in federal retirement benefits you’ve worked hard to earn.