Michigan AG Warns Federal Employees About Deferred Resignation Program

The U.S. Office of Personnel Management's deferred resignation program led to warnings from unions and attorneys general.
Michigan AG Warns Federal Employees About Deferred Resignation Program

Federal Employees Advised to Review Terms of New Resignation Program

In a recent development affecting federal workers, the U.S. Office of Personnel Management (OPM) announced a new program under the Trump administration. An email sent on January 28 detailed the introduction of a deferred resignation scheme available to federal employees. This program impacts a substantial workforce, as there were at least 29,000 federal employees in Michigan alone as of 2024, excluding military staff and contractors.

According to Michigan Attorney General Dana Nessel, the initiative offers employees the opportunity to resign while continuing to receive pay and benefits until September 30, without the obligation of in-person work. “Employees were told that if they accept the offer and resign,” Nessel mentioned in a press release, “they would continue receiving all pay and benefits and be exempt from in-person work requirements until September 30.”

However, the OPM communication also issued a firm deadline, requiring employees to make their decision by February 6. Those who choose not to resign are cautioned that their job security may not be assured.

In response to the program, Attorney General Nessel, along with a coalition of 12 attorneys general, has expressed concerns regarding the clarity of the program’s terms. The group has cautioned federal employees that the program’s description may be misleading. Nessel advised, “For those considering the buyout, read the fine print before signing and be cautious, as certain benefits may not be guaranteed. Employees who are represented by a union should work with their labor representatives before entering into any contract changes.”

Several unions are also advising their members to approach the offer with caution. The American Federation of Government Employees, which is the largest union representing federal workers, alerted members that the promised benefits might not be guaranteed under the program. Similarly, the National Federation of Federal Employees has issued warnings, advising its members to thoroughly evaluate the offer before making any decisions.


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