As has been widely reported, Elon Musk’s Department of Government Efficiency (DOGE), under the broader agenda of President Trump’s administration, has introduced a buy-out package aimed at reducing the federal workforce. The scale and speed of this “deferred resignation” offer has sparked significant debate across impacted groups, the media and politicians.
Understanding the Offer
The severance package provides eligible federal employees the opportunity to resign voluntarily by February 6, 2025, while still receiving their salary and benefits until September 30, 2025. This around 8 months.
However, this offer is not extended to military personnel, postal workers, or those in national security roles. The goal is to cut the federal workforce by 10%, which equates to roughly 200,000 employees.
How Much is the Offer Worth?
While the value of this severance or deferred resignation package will vary for each employee based on their pay, benefits and other compensation factors, we can do a back-of-the-napkin calculation on the value of the resignation package using the base 2025 GS pay scale (excluding locality pay).
Below is the value for 8 months of pay based on the base GS pay scale. Using the step and grade, you can estimate the value of the resignation package/pay you could get from the DOGE scheme.
This is not a standard severance package
An important point to note is that those who resign and accept DOGE packages will not be in line with the standard OPM severance guidelines that state, “resignations under any other circumstances are voluntary separations and do not carry entitlement to severance pay.”
So be careful is accepting the DOGE packages as there are concerns around the legitimacy of this severance package. Experts warn that it could violate federal employment laws, and there’s no guarantee it won’t be reversed or challenged in court.
Should You Take the Offer?
The federal government employs more than 3 million people (~2% of the nation’s entire civilian workforce). So, a lot of people are impacted by this offer and before making a decision, consider the following:
- Do you have a financial safety net? If you don’t have at least 6-12 months of savings, this move might be too risky. While some of the numbers may look big in the DOGE severance package, they will run out fast and you will likely need to find a job before they do.
- Do you have a career plan post-federal employment? If you already have a private sector job offer or a business idea, this could be a great transition opportunity. But be aware that moving to the private sector generally has more risks and job security can be much lower (despite recent events).
- Consult with a financial advisor. This is a major financial decision that could impact your long-term stability. Seek professional guidance before signing anything and making panicked decisions is not a good idea.
Would you consider taking this severance package? Let’s discuss in the comments below!
2025 spending – Social Security up 7%, Medicare up 5%, and Medicaid up 9% because of rising costs per enrollee. President Trump has taken these programs off the reform list, which is like saying you want to go on a diet except for the beer, chips and ice cream sundaes.
What happens to this offer and payments with a government shutdown? The OPM says that if the federal government shuts down after March 14, employees who have accepted the deferred resignation offer could see their pay impacted.