Would any of you consider this buyout?
Trump administration offering buyouts to nearly all federal workers
Trump administration offering buyouts to nearly all federal workers
-
Please read our AutoTracker policy on the IFT deadline and remaining active. Thanks!
-
$ - Premium Service Content (Info) | AutoTracker Monthly Winners | Is Gmail et al, Blocking Our emails?
Find us on: Facebook & X | Posting Copyrighted Material
-
Join the TSP Talk AutoTracker: How to Get Started | Login | Main AutoTracker Page
-
The Forum works well on MOBILE devices without an app: Just go to: https://forum.tsptalk.com ...
Or you can now use TapaTalk again!
Buyouts to nearly all federal workers?
- Thread starter tsptalk
- Start date
WorkFE
Well-known member
I would retire first
Last edited by a moderator:
I can't take advantage, I need at least two more years. I mean, it's not really a "buyout". it's paid leave. The brutal part about this is what happens to those of us who stay?
No telework, so we'll go into a physical office to hop on Teams and continue to work doing screen sharing. We're not going back to sitting in a co-workers office looking over their shoulder to try and see the screen, ask them to email code, etc.
Honestly, it's pretty scary right now..
exnavyew
Well-known member
Just FYI:
Dem Lawmaker Has Urgent 3-Word Warning For Federal Workers Tempted By Trump's Offer
https://www.yahoo.com/news/dem-lawmaker-urgent-3-word-045246344.htmlWhat federal workers should know about Trump administration’s ‘deferred resignation’ offer
https://www.yahoo.com/news/federal-workers-know-trump-administration-142156317.html
Last edited:
WorkFE
Well-known member
True but Paid Leave with a permanent end date. I was thinking of staying one more year (62) and retiring, I may readjust that but most likely not. As an Emergency Manager I've never been authorized telework, so I suppose I don't know what I'm missing. I do interact with quite a few folks who are teleworking, they are responsive, so I have no negative opinion one way or the other.
It's no scarier than the last big RIF they had, got to be over 10 years ago. I guess if you are a teleworker and have gotten used to it, I'd probably accept going back to the office or be on pins and needles. Good luck to those having to make that decision.
Boghie
Well-known member
Like WorkFE, I am seriously considering this.
I am not teleworking, so there is no concern there for me. Additionally, I am also planning to retire 2026/12/31 (or, whatever) so I have to factor in the negative effect of 14 months of no TSP contributions and 14 less months of FERS time. My financial plan is rock solid right now and that includes my wife quitting work on 2026/12/31 - which she won't. I was also thinking I might take a fun-time job early in retirement just to keep the blood flowing and that was not factored into my retirement plan. So, all in all, this is looking like a good move for me...
I am probably in a fairly favored situation, so don't take this as advice. It is more stream of thought so I can figure things out quickly. My current retirement plan has me:
Why is this happening? This is actually a very nice offer for lots of folks. The folks that hate the Trumpster can get a paid out, the folks in at-risk jobs have nine paid months to seek employment elsewhere, the folks nearing retirement can number crunch for leaving early and enjoying their Go-Go retirement years. For those that stay, I think the job may well be much less stratified and perhaps much more expressive - much less drone work. Much more similar to when I was with the USMC from 1988 through about 2008 than the end of my time with the Marine Corps and my current employment. The civilian workforce in the USMC was much more fluid and demanding. I liked that.
I am not teleworking, so there is no concern there for me. Additionally, I am also planning to retire 2026/12/31 (or, whatever) so I have to factor in the negative effect of 14 months of no TSP contributions and 14 less months of FERS time. My financial plan is rock solid right now and that includes my wife quitting work on 2026/12/31 - which she won't. I was also thinking I might take a fun-time job early in retirement just to keep the blood flowing and that was not factored into my retirement plan. So, all in all, this is looking like a good move for me...
I am probably in a fairly favored situation, so don't take this as advice. It is more stream of thought so I can figure things out quickly. My current retirement plan has me:
- Leaving Federal Service on 2026/12/31 at age 62
- Wife leaving her CPA firm on 2026/12/31
- Not taking Social Security till I am 70
- Using FERS immediately
- Using TSP immediately - and scaling back distributions when Social Security kicks in
- Leaving Federal Service on 2025/09/30 at age 61
- Wife leaving her CPA firm on 2026/12/31 - but, she doesn't want to so this will wipe out any problems
- Not taking Social Security till I am 70
- Using FERS immediately
- Using TSP immediately - and scaling back distributions when Social Security kicks in
Why is this happening? This is actually a very nice offer for lots of folks. The folks that hate the Trumpster can get a paid out, the folks in at-risk jobs have nine paid months to seek employment elsewhere, the folks nearing retirement can number crunch for leaving early and enjoying their Go-Go retirement years. For those that stay, I think the job may well be much less stratified and perhaps much more expressive - much less drone work. Much more similar to when I was with the USMC from 1988 through about 2008 than the end of my time with the Marine Corps and my current employment. The civilian workforce in the USMC was much more fluid and demanding. I liked that.
Boghie
Well-known member
It's actually pretty clear: OPM Fork in the Road
I guess the only questions I need answered:
- Do actually I get the offer if I don't telework? That is, if I get the email can I act on it, or is this just Gubmint doing the dumb. Everything points to it being a general offer with a few exceptions. I don't know if my DoD position is excepted, so there is that. But, I did get the 'Hello World' emails, so...
- As someone who doesn't telework, do I still camp my cubicle from acceptance onward or can I enjoy the sun? It's clear that teleworkers can just take a free vaycay, but what about cubicle campers.
Jackbnimble
Member
This is right in my sweet spot, so I am looking at it pretty closely. Was planning on retiring 12/31/25. If I take it, I will retire the pay period ending right before 9/30/25. May work part time at Lowes or some golf course. Then again, I may not.
Boghie
Well-known member
Run, don't walk
You may not get a gravy train offer like this ever again. I don't know if it is really awesome though - my question on what happens if you take it still stands. I mean, let's say you take it - and here comes the beautiful spring and summer weather. If you are a cubicle warrior do you get to enjoy it? If you still have to come in than you really don't get anything/much out of the offer.
Basically, they want the payrolls cleared of about 5% - 10% of the workforce by the new fiscal year. That savings will be on-going, while the expense will be one-time.
This could also be something we in IT call 'The Scream Test'. Basically, the Federal Gubmint has become so fat, bloated, and disorganized that it doesn't know where it's spending time and money. If someone quits that is actually high value then the screaming will start. If a drone quits than all is good.
voodoostation
New member
The way I understand, after listening to my Director, was the speed with with you are free from your job duties is dependent on how quickly they can reassign your responsibilities and work load. Also, which positions can and will be exempted from the reduction after further research and review. Gonna be an interesting 11 or so days.
Boghie
Well-known member
I kinda concur with this. However, the intent is to provide a compassionate exit and an incentive to exit. Some mid-level 'Director' schlep will not be able to hold you indefinitely. The expectation is for a quick turnover. Then, you can use your 8 months of paid admin leave to:
- Look for another job
- Retire early
- Whatever
On the other hand, I don't really like the unmanaged scope of this. I mean, some/lots of critical folks will take the offer and the functioning of the government will degrade. But, at least the yelling will inform on what the critical functions are. If I remember, Musk was talking about a 2 year severance package during the election, maybe they cannot cross the fiscal year line. If that is the case, perhaps this will be offered again in October.
Sorry folks. I look at this as smoke and mirrors. Coming right out of the 2025 handbook. If it looks too good to be true it must be. There is something else behind the mirror you can't see.
If the 200,000 take up this offer and the average salary is $5,000/month multiply that by 8 months you get $40,000 per person. Now multiply that by 200,000 and the cost is $8.0B. Assuming most of the folks are near retirement this is probably minimum. Who's to say 2 months down the road another document is signed saying since you resigned you a hereby permanently terminated. Oh, and by the way the 8 months was an estimate.
If the 200,000 take up this offer and the average salary is $5,000/month multiply that by 8 months you get $40,000 per person. Now multiply that by 200,000 and the cost is $8.0B. Assuming most of the folks are near retirement this is probably minimum. Who's to say 2 months down the road another document is signed saying since you resigned you a hereby permanently terminated. Oh, and by the way the 8 months was an estimate.
Boghie
Well-known member
It's not 8 months. It is 2025/09/30. So, about 8 months. You don't resign till 2025/09/30.
For each employee, the Gubmint pays:
Gross Salary
7.2% of Salary to OASDI/Medicare
5% of Salary (hopefully) into TSP
67% (?) of the Health Insurance cost
For a GS-7 in Raleigh, that is:
Gross Salary: $57K
7.2% of Salary to OASDI/Medicare: $4,100
5% of Salary (hopefully) into TSP: $2,850
67% (?) of the Health Insurance cost: $11,490
For a grand total, out the door, of $75,440 for a GS-7. Internal Review studies use a cost of $93/hour as their normalized man-hour cost. It includes stuff like office space, your computer, your phone, heating, cooling, whatever... At 2K work-hours/year that adds up to $186,000/year. You don't have to water employees that aren't there.
Assuming the GS-7, the savings would be $15B, assuming the number used by IR the savings would be $37.2B. I think it would be somewhere in between. I don't think the average grade is a GS-7 Step 1 and I would bet the kitchen sink is included in the IR number so it really isn't suitable for large numbers.
For those positions that are vacated and nobody complains the savings would be forever. Also, think of those drone spots where someone doesn't like that you formatted the date as YYYY/MM/DD and demands that you change it to Julian Date or something. Or calls you weekly regarding a milestone that cannot be met. Or, makes you hire the seventh most qualified person because. Those are costs that keep on costing.
They are not forcing you to resign by fiat. They are enticing you to resign. I don't like the global, unmanaged aspect of this - but, perhaps the Gubmint has just gotten so bloated that nobody knows nothing. Remember, the civilian workforce doubled since 2008.
If you take this before retirement have your TSP pushed into a self-directed IRA or into your new 401(k). If you live in Greenland and telework do the same and look for a new job with those 8 months of paychecks coming in. If you are a DEI policy making director do the same. If you are nearing retirement consider retiring a bit earlier. Everybody has to think this through. The crappy thing is that we have to make a decision by next Thursday - which sucks. I've dropped an email to my Financial Advisor.
WorkFE
Well-known member
That's crazy
Sorry I don't buy it.
Any other company and you walk into your boss's office and say "I resign" you are cleaning out your desk that day. They aren't going to say ok we will pay you for the next couple months to sit on your butt and do nothing.
Think about this.
One week after the deadline set for resignation an executive order is signed placing all federal employees under schedule "F".
You sent the resigned email. How much longer will you be working?
They are playing a high-stake game, and we can't see all the cards.
Any other company and you walk into your boss's office and say "I resign" you are cleaning out your desk that day. They aren't going to say ok we will pay you for the next couple months to sit on your butt and do nothing.
Think about this.
One week after the deadline set for resignation an executive order is signed placing all federal employees under schedule "F".
You sent the resigned email. How much longer will you be working?
They are playing a high-stake game, and we can't see all the cards.
WorkFE
Well-known member
All employees can't be schedule F by definition but I hear what you're saying
Boghie
Well-known member
Long term it's actually cheaper to remove the dead wood from the system.
Say my cost to the Gubmint is $100K - salary, OASDI, FEHB, and TSP match. That would be a GS-9 Step 5 in Raleigh. That means that you will cost the Gubmint about $75K because they pay you 3/4ths of the year. Round numbers. This is a one time cost and will be accrued only for FY2025.
If this chap decides to take a job in the private sector he will cost the Gubmint $0 in FY2026, $0 in FY2027...
If this chap decides to retire he/she will be getting his/her FERS pension - but he/she was on track to get that soon anyway.
If this chap seeks Federal employment once they cull the useless positions he/she will be doing useful work - at least per the Trumpster
Or, if this individual looks around and finds he/she is actually phoning it in (
) then he/she is incentivized to look for other employment.So, the only negative is if someone takes an additional year of FERS annuity. The other results are net positives. And, yes, it can actually be less expensive to let some bureaucrats slumber their eight months with pay rather than cause hate and discontent with the myriad of stultifying regulations they enforce (but, which will likely be vanished).
Where the DOGErs seem off is that 200K Gubmint employs won't save hundreds of billions of dollars. However, if there is no screaming for the valuable service they once offered, perhaps the entire entity could be vanished and that would save bank.
Similar threads
