Are You Prepared for a Reduction in Force or Early Retirement Offer?

Are You Prepared for a Reduction in Force or Early Retirement Offer?

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.