Policy changes from White House have disrupted the federal government Financial advisors can help federal employees with planning their retirement, TSP, and other federal benefits.
Financial Planning for Federal Employees as Policy Changes Cause Chaos Across Agencies
Choosing the right financial advisor can make a significant difference in achieving your financial goals and maximizing your federal benefits, but having a fed-focused fiduciary planner with expertise in the federal space is crucial under the current chaotic conditions caused by the second Trump administration’s DOGE advisory board led by Elon Musk. This article explores FERS retirement scenarios when faced with a potential reduction in force (RIF), the current pause on the deferred resignation buyout offer, and the best advisors and resources available to federal employees in these uncertain times.
FERS Retirement Options During Reduction in Force
Can Federal Employees Retire if Job is Terminated Due to RIF?
Yes, if a federal employee is eligible for a FERS annuity benefit when they receive notice that their job is getting terminated due to an RIF, then they can apply for retirement. The retirement options available will depend on the employee’s age, years of creditable service, and whether or not an “early out” retirement (VERA/VSIP) has been been offered to impacted employees.
Federal Retirement Scenarios After Receiving Notice of RIF:
| Age | Years of Service | VERA Offered? | Special Provisions | FERS Options |
| Under MRA | Less than 5 | N/A | N/A | Refunded contributions (not eligible for retirement) |
| Under MRA | 5 -19 | N/A | N/A | Defer FERS retirement to age to 60 or 61 with reduction penalty or 62 for unreduced annuity |
| Any Age | 25+ | No | Yes | Eligible for immediate FERS benefit and Special Retirement Supplement (SRS) |
| Any Age | 25+ | Yes | N/A | Eligible for immediate FERS benefit and SRS |
| 50 | 20+ | No | Yes | Eligible for immediate FERS benefit and SRS |
| 50 | 20+ | Yes | N/A | Eligible for immediate FERS benefit and SRS |
| 56 | 20+ | N/A | Yes (ATCs only) | Eligible for immediate FERS benefit and SRS |
| 57 | 20+ | N/A | Yes (Firefighters, LEOs) | Eligible for immediate FERS benefit and SRS |
| MRA+ | 30+ | N/A | N/A | Eligible for immediate FERS benefit and SRS |
| 58-59 | 10 – 19 | N/A | N/A | Postpone retirement retirement to age 62 “MRA+10” |
| 60-61 | 20+ | No | N/A | Eligible for immediate FERS benefit (with age reduction penalty) or postpone retirement for unreduced annuity (1.0% multiplier) |
| 62+ | 5+ | N/A | N/A | Eligible for immediate FERS benefit (with no age reduction penalty and 1.0% multiplier) |
| 62+ | 20+ | N/A | N/A | Eligible for immediate FERS benefit (with no age reduction, plus receive 10% boost to pension with 1.1% multiplier) |
To estimate your federal retirement income, try our FERS pension calculator tool
Deferred Resignation Confusion Continues: Buyout Offer Put on Pause by Federal Court
Judge Pauses Offer to Federal Workforce
Since the deferred resignation memo, entitled “the Fork in the Road,” was sent at the end of last month, there has been confusion and uncertainty surrounding whether employees would receive the pay offered by the White House’s DOGE council, and even if the executive branch has the authority to make such an offer to employees at federal agencies. Just before the deadline to accept the buyout hit, a federal judge paused the process to review the legality of the deal. Federal employee advocacy groups filed the highlighted lawsuit, claiming Congress has only approved funding through the end of the March and therefore the government couldn’t guarantee the pay through September 30th that resigned feds expected to receive for accepting.
New Executive Order to Reduce Government Size through RIFs and Hiring Restrictions
With the the hold on the buyout offer, DOGE and the White House revealed a new executive order that seeks to shrink staff at federal agencies through hiring practices and reductions in force. The order instructs agency leaders to coordinate with the Department of Government Efficiency (DOGE) regarding which occupations can be eliminated and only allowing hiring for jobs deemed essential government function as stipulated by existing law.
Click here for a checklist to prepare for possible RIF at your agency.
Knowledge is Confidence!
Best Financial Advisors for Federal Employees
Why is Financial Planning Important for Federal Employees?
Financial planning is vital for federal employees due to the distinct nature of their employment benefits and retirement systems. Unlike private sector employees, federal employees have access to unique retirement plans such as the Thrift Savings Plan (TSP) and the Federal Employees Retirement System (FERS) pension. Effective financial advisors that have extensive experience with federal benefits can help federal employees navigate these complex plans, ensuring they make informed decisions about their financial future. With so much happening across the government recently, having accurate, informed answers to your retirement and financial questions can be an invaluable resource. If you’re in need of a fiduciary TSP planner, learn why the advisors at PlanWell are some of the best in the business.
What Qualifications Should a Fed-Focused Financial Advisor Have?
When selecting a financial advisor, federal employees should look for professionals with specific qualifications and expertise in federal benefits and retirement systems. A Certified Financial Planner (CFP®) designation is a good indicator of a qualified advisor, as it demonstrates a commitment to ethical standards and comprehensive financial planning knowledge. Additionally, advisors who specialize in federal employee benefits and have experience working with federal government employees can provide valuable insights and guidance. It’s also important to choose an advisor who acts as a fiduciary, meaning they are legally obligated to act in the best interest of their clients. The advisors at PlanWell are both Chartered Federal Employee Benefits Consultants and Accredited Investment Fiduciaries.
How Can a Financial Advisor Help Federal Employees?
A financial advisor specializing in federal benefits can provide invaluable assistance that many financial firms are unable to match when it comes to the federal workforce. Advisors can offer personalized advice on retirement savings strategy, understanding FERS or CSRS (Civil Service Retirement System) benefits, and integrating federal benefits with Social Security. They can also assist with investment strategies, estate planning, and tax planning, ensuring that even new federal employees make informed decisions about their financial future. Before working with an advisor outside of PlanWell, ask these key questions:
- What experience do you have working with federal employees and retirees?
- Are you familiar with the TSP, FERS, and FEGLI?
- Do you hold any certifications, such as the CFP® designation?
- Are you a fiduciary?
- How do you charge for your services, and what is your fee structure?
If they can’t answer these questions to your satisfaction, then speak with an advisor who is well-equipped to handle your unique financial goals.
Retirement Planning for Federal Employees
Wealth Management and Investment Advisory Services
A qualified financial professional can play a critical role in financial planning for federal employees. With a sharp understanding of federal benefits, advisory relationships with PlanWell Financial help feds develop retirement and investment strategies, along with assistance in multiple other areas of financial planning. A strategic investment plan, tailored to an individual’s risk tolerance and financial goals, is essential when developing a broader federal retirement plan, but there is more to consider when giving advice to federal workers. Our advisors will put a plan in place for you, design a personalized portfolio, and provide individual support than can be difficult find these days throughout the financial industry.
What Resources are Available for Federal Employee Financial Planning?
Free Federal Retirement Workshops and Webinars
To learn more about the federal employment benefits package, there are free online federal retirement seminars online. covering topics such as retirement planning, investment strategies, and FEGLI benefits, along with other information and practical advice. Attending is free and includes a 20+ page report along with access to financial planning advice and personal retirement planning services. With the insights obtains during the webinar, along with a review of your report with a PlanWell expert, you can maximize your financial future when planning for retirement in chaotic times.
Online Tools and Calculators that Federal Employees Need
Numerous online tools and calculators are available to assist federal employees in their financial planning efforts, but the calculators at PlanWell were designed to help employees estimate retirement income, calculate TSP withdrawals, and figure out their sick leave conversion, along with other tools to assist feds on their retirement journey. These tools and calculators let employees maximize their ability to make informed decisions. Utilizing online tools and calculators can enhance financial planning efforts to help you achieve a prosperous financial future.
Reach Out to Us!
If you have additional federal benefit questions, contact our team of CERTIFIED FINANCIAL PLANNER™ (CFP®) and Chartered Federal Employee Benefits Consultants (ChFEBC℠). At PlanWell, we are federal employee financial advisors with a focus on retirement planning. Learn more about our process designed for the career fed.
Preparing for federal retirement? Check out our scheduled federal retirement workshops. Sign up for our no-cost federal retirement webinars here! Make sure to plan ahead and reserve your seat for our FERS webinar, held every three weeks. Want to have PlanWell host a federal retirement seminar for your agency? Reach out, and we’ll collaborate with HR to arrange an on-site FERS seminar.
Want to fast-track your federal retirement plan? Skip the FERS webinar and start a one-on-one conversation with a ChFEBC today. You can schedule a one-on-one meeting here.
