AFGE Local 17 Podcast with Attorney Michael Fallings of Tully Rinckey PLLC – Deferred Resignation Program
AFGE Local 17 recently hosted an important podcast episode on VA’s renewed Deferred Resignation Program, and what it means for employees who feel they’re being pushed out under the guise of “voluntary” separation.
Our guest was Michael Fallings, Managing Partner at Tully Rinckey PLLC, a nationally respected law firm that specializes in federal employment law. He joined Local 17 President Doug Massey for a candid, in-depth conversation about the legal and strategic implications of the offer, as well as what every VA employee should consider before making a decision. In addition to the information below, consider reviewing this article on Federal News Network about what to consider before accepting deferred resignation.
Table of Contents
A Workforce on the Chopping Block
The Department of Veterans Affairs employs roughly 470,000 people nationwide — a workforce driven by compassion, expertise, and a commitment to serve Veterans with excellence. But that workforce is now facing unprecedented cuts.
Secretary Doug Collins, along with the so-called Department of Government Efficiency (DOGE), has announced plans to eliminate 83,000 positions — nearly 15% of the agency’s staff.
Doug Massey laid out the situation bluntly during the podcast:
“First, they demoralize employees with threats of sweeping RIFs. Then they force people back into physical offices under rigid mandates. And now, just as morale hits rock bottom, they roll out so-called ‘incentives’ to get people to quit voluntarily.”
Deferred Resignation Program — Round Two
This second round of the Deferred Resignation Program offer is slightly different in that it is not coming from the Office of Personnel Management (OPM), as it did earlier this year. Instead, it’s coming directly from the VA.
The offer provides that:
- Employees must resign or retire by April 30 at 5:00 p.m.
- In return, they’ll receive full salary and benefits through September 30, 2025
- Essentially, it’s a five-month severance — but one that comes with pressure and uncertainty
As Federal News Network recently reported, legal experts are raising red flags. Without OPM oversight or a formal separation incentive structure, the legality of the offer is murky. There are also questions about how consistently the program is being offered — and whether employees are being given accurate information.
Michael Fallings didn’t mince words:
“If people are being misled, pressured, or selectively offered the program, that raises legal and ethical concerns. Every employee deserves transparency and fairness before making such a life-altering decision.”
For Some, the Offer Might Make Sense — But Not for All
This program may be reasonable for certain employees — but only after a thorough and individualized review. As outlined in a second Federal News Network article, the offer might be worth considering for:
- Employees already planning to retire, who can benefit from five months of continued salary and benefits
- Those with another job lined up, and whose agency does not prohibit outside employment while on administrative leave
- Workers in strong financial positions, who can absorb the transition without hardship
- Employees experiencing serious burnout, who view this as a personal and professional exit ramp
That said, experts caution that accepting the offer could have long-term consequences, including:
- Losing future federal employment benefits
- Becoming ineligible for severance pay in the event of a RIF
- Potential disqualification from unemployment insurance, depending on state rules
- Risking gaps in FEHB coverage or TSP rollover errors
“This might be a smart move for one person and a costly mistake for someone else,” one federal retirement expert said.
That’s why the article — and our podcast — urge all employees to:
- Consult with your union or an employment attorney
- Ask specific questions about benefits, rehire rights, and retirement timing
- Avoid rushing into any decision before April 30th
Know Your Rights. Don’t Let Fear Decide for You.
AFGE Local 17 hosted this podcast to inform and empower employees — not to promote the resignation program. We recognize that every federal worker’s situation is unique, and every decision deserves thoughtful, informed consideration.
Our deepest thanks to Michael Fallings for lending his expertise, and to Michael Murray at Tully Rinckey for helping make the conversation possible.
Listen to the Podcast on Spotify
You can watch the video podcast in the player at the top of this article, or on our YouTube page. However, if you prefer, we publish this podcast in audio format on Spotify. You can listen below. Make sure to subscribe so you don’t miss our future episodes!
Deferred Resignation Program – Questions and Answers
We recently sent a survey out to our membership to ask them what questions they had about the Deferred Resignation Program. We addressed some of them during the podcast, but those that we could not address have been answered below.
Legitimacy of the Deferred Resignation Program Offer
Q: Is it for real this time? I think last time we weren’t sure if it was legal or not. Is it legit this time?
A: There is still litigation regarding the legality of the Deferred Resignation Programs, but it appears that this offer will be honored by the Department.
Representing Veterans While on Paid Leave
Q: If I resign am I able to become VA accredited and represent Veterans while I’m accepting my salary through September 2025?
A: Consult with the VA ethics office regarding this to receive guidance.
Confusion Over Age 40+ Timeline and Administrative Leave
Q: Hello. The over 40 timeline is very confusing with the whichever is later. If they are not sending the contract/agreement until after the April opt in period, why would someone over 40 have to wait until July? It is confusing because it also says agreement/contract signed then seven day revocation so why would the administrative leave date not be sooner?
A: Employees over 40 would not be required to wait until July, but the earliest date of eligibility for administrative leave would be July 1. The Older Workers Benefit Protection Act (OWBPA) guarantees employees over 40 a 7 day revocation period after signing a severance agreement.
VERA Eligibility After Declining by April 30
Q: If you are eligible for VERA and opt not to take it prior to the April 30 deadline, would you be eligible for it again in the event of being RIF’ed over the summer? If your request for VERA is rejected by the department, would you still be subject to being RIF’ed at a later date?
A: The Department has not indicated whether there will be future VERA opportunities, or if they intend to RIF VA employees who were denied VERA, but VERA eligible employees who are involuntarily separated through a RIF should be eligible for discontinued service retirement (DSR).
Admin Leave Timing for Over 40 Employees
Q: Are employees over 40 eligible to sign Deferred Resignation Program agreements and set dates for admin leave that fall before the enrollment period ends on April 30?
A: Administrative leave is not available prior to July 1 under the VA Deferred Resignation Program.
Access to the Deferred Resignation Program Contract
Q: VA has not yet shown the contract employees will need to sign. Shouldn’t we be able to see the contract before requesting the resignation or retirement?
A: The Union recommends reviewing any contract before signing and potentially consulting with a private federal employment attorney.
Concern Deferred Resignation Program is Used to Identify Future RIFs
Q: Are the Deferred Resignation Program emails just a way to get a list of the first employees to RIF?
A: The goal of VA is to reduce the total number of VA employees to below 400,000 (from more than 480,000). If more employees elect to voluntarily resign through Deferred Resignation Program, it could reduce the total number of VA employees involuntarily separated through a RIF.
Continuing Union Membership After Retirement
Q: Can I continue to pay dues to Local 17 after I retire because I support the cause?
A: Yes, you may continue to pay edues to Local 17 after separation from federal service. Please reach out if you have more questions and thank you for your continued support.
Clarification on When Administrative Leave Begins
Q: The language is confusing as to when admin leave would begin. It seems to say that admin leave would begin July 1, but if you are over 40, it will begin 7 days after signing the contract. I would like clarification on this.
A: The language is not a model of clarity but appears to say whichever date comes later. Administrative leave would not begin earlier than July 1.
Working Requirements Before July 1
Q: Will it be a “paid vacation” until September 30, or will we still be expected to work. If it depends on our position, which positions will be expected to continue working and which positions will be paid not to work.
A: Administrative leave would begin July 1 and employees would continue to receive their pay and benefits until September 30. The employees would need to continue to work prior to July 1.
Deferred Resignation Program Eligibility for Rehired Probationary Employees
Q: Are probation workers that were let go and brought back eligible for Deferred Resignation Program?
A: The VA guidance indicates that probationary employees are eligible for Deferred Resignation Program.
Deferred Resignation Program Eligibility for Retirement-Ready Employees
Q: Will I qualify for the Deferred Resignation Program (Retirement) if I’m currently retirement eligible?
A: Yes, you are eligible for Deferred Resignation Program as long as you select a retirement date prior to October 1.
FERS Supplement Availability Under VERA
Q: Will the FERS supplement be available for those taking a VERA by this offer? There are budget bills in Congress now that would eliminate federal employee benefits including the FERS supplement, and I’m not clear if I take a VERA that the FERS supplement would be preserved for me with that offer.
A: To be eligible for the FERS supplement, you must be at your minimum required retirement age (55-57 depending on year of birth). Eliminating the FERS supplement has been discussed as a possible cost offset in a budget reconciliation bill but no proposed legislative text has been released. Eligibility would depend on the legislation Congress passes.
Criteria for Job Series Eligibility
Q: What were the factors used to decide which job series would be eligible/not eligible for this offer.
A: The Department has not shared the factors they considered, but these appear to be positions related to direct veteran care or other positions deemed as mission critical by the Department.
Taking Deferred Resignation Program Now and VERA Later
Q: If I plan to retire to receive my full annuity next year — could I take the DRP and then VERA?
A: You would need to retire prior to 9/30 to elect to retire under DRP.
RIF Consequences for Retirement-Eligible Employees
Q: Employee is at full retirement age with at least 20 years of service. Decides not to take DRP and is RIF’d, does employee forfeit FEGLI and FEHB?
A: If the employee is retirement eligible at the date of separation, they may continue on FEHB and FEGLI if they had been enrolled for five years from their separation date.
Future Federal Reemployment Possibilities
Q: If I apply and am accepted and next year I see a job I would like to apply for, am I allowed to apply and come back as a federal service employee again?
A: Yes, you are able to apply, but the duration of the federal hiring freeze is unknown and given the emphasis on reducing the number of federal employees there are no guarantees an employee would be rehired.
Work Status for Decision Writing Attorneys
Q: I’m a decision writing attorney with the Board of Veterans’ Appeals. If I apply and become approved to participate in the DRP, will I have to continue working until my deferred resignation date, or will I be placed on administrative leave?
A: You would be placed on administrative leave on July 1.
Deferred Resignation Program vs. DSR After Declining Offer
Q: I qualify for DRP/VERA, but if not taking it and get laid off later without a reasonable offer, am I entitled to DSR? Quite a few of us are debating which option to go with.
A: Yes, if an employee qualifies for VERA, they would qualify for DSR if involuntarily separated through a RIF.
What criteria will the VA require in order to allow an exception for an LPN who would like to accept the DRP?
I have a question/clarification about in-office work and telework regarding the DRP. Are employees who take the DRP eligible for telework during the period between April 30 and July 1 before they are placed on Administrative leave or do they have to come to work at the facility? There is little clarity on this within the FAQ’s that I have seen.
Can you publish the content of the “links” included in the “Message From the Secretary” email to VA Employees dated April 4, 2025, Deferred Resignation Program Offer? I see the email from Doug Collins, but I cannot access the links. I am trying to help my disabled daughter who works for the VA but is unable to print the forms/content contained in the links and bring them home so that she can make the best decision as to her future.
Without the links embedded in the “Message from the Secretary – Deferred Resignation Program Offer” dated 4/4/2025, there is no information as to how to respond to the email. Thank you.