Should I Take the Federal Buyout? Decision Quiz 2026

8 questions, instant result

Answer a few questions about your retirement eligibility, the offer type, your finances, and FEHB status. You'll get a tiered recommendation with the reasoning, plus links to the calculators that matter most for your situation.

VERA / VSIP / DRP / deferred resignation eligibility
Retirement benefit and FEHB 5-year check
TSP Rule of 55 and financial runway
RIF risk and risk tolerance

No personal data collected. Decision-support only, not financial advice.

How the Quiz Works

The quiz evaluates eight dimensions across your situation and scores each answer against a 100-point model. Higher scores indicate a stronger financial case for accepting the offer; lower scores favor staying.

Dimension	Weight	What it measures
Retirement eligibility	30 pts	Can you start a pension immediately? Full, VERA, MRA+10, deferred, or none?
Offer type	20 pts	VERA+VSIP (max package) down to deferred resignation (weakest)
Financial runway	15 pts	Months of expenses covered without your salary
RIF/agency risk	15 pts	How likely is an involuntary separation if you stay?
FEHB 5-year rule	10 pts	Can you carry federal health insurance into retirement?
TSP penalty exposure	5 pts	Are you under 55 at separation? (10% early withdrawal penalty)
Risk tolerance	5 pts	Modifier: conservative tilts against borderline scores; open tilts for
Spousal income	+3 bonus	A second income source reduces financial transition risk

65–100

Strong case to take it

40–64

Proceed carefully

0–39

Likely better to stay

The Four Offer Types — What Each Means

VERA + VSIP

•The maximum package: early retirement pension + cash buyout
•VERA: pension starts immediately, no annuity penalty
•VSIP: $25K standard / $40K DoD, ~$17K-$30K after taxes
•Best outcome for retirement-eligible employees

DRP (Paid Leave to a Date)

•Full salary continues through the administrative leave period
•No lump-sum cash beyond normal pay
•No early retirement — separation is standard
•Valuable if you need time to prepare next steps

VSIP Only (No VERA)

•Cash buyout up to $25K (or $40K at DoD)
•Standard resignation — no early retirement pension
•If not retirement-eligible, you still leave without a pension
•Subject to 5-year reemployment restriction

Deferred Resignation

•Agree to resign with a future effective date
•Typically no cash payment and no early retirement
•May include a paid leave period (similar to DRP)
•Weakest offer financially unless combined with pension eligibility

Critical Rules Before You Decide

FEHB 5-Year Rule

To carry federal health insurance into retirement, you must have been enrolled in FEHB for the 5 consecutive years immediately before your retirement date. Missing this rule — even by one day — means permanently losing access to FEHB at retiree group rates. Private individual coverage for a federal retiree can run $12,000– $25,000 per year for a family.

TSP Rule of 55

Federal employees who separate during or after the calendar year they turn 55 can withdraw from TSP without the 10% IRS early-withdrawal penalty. If you're under 55 at separation, that 10% cost applies to all TSP withdrawals until you reach 59½ — a significant constraint on your retirement savings access during the transition.

FERS Supplement Timing

The FERS Supplement bridges the income gap between an early retirement and Social Security at age 62. Under VERA, if you retire before your MRA (57 for most), the supplement is delayed until you reach MRA — not until age 62. For a 50-year-old with an MRA of 57, that's a 7-year wait for the supplement to begin.

FERS COLA Delay

FERS retirees do not receive cost-of-living adjustments on their pension until age 62. A $3,000/month pension starting at age 50 does not adjust for inflation for 12 years — a meaningful erosion of purchasing power. CSRS retirees receive COLAs immediately upon retirement.

VSIP + RIF Severance Cannot Both Be Collected

Accepting a VSIP payment means you cannot also receive RIF severance for the same separation. If you accept VSIP now and your agency conducts a RIF next year, you receive no additional severance. Conversely, if you decline VSIP and are later RIF'd, you receive severance but no buyout. Most employees in high-RIF-risk positions are better off taking the certainty of VSIP.

2026 Federal Buyout Landscape

2026 has seen the broadest federal workforce reduction effort in decades. Multiple agencies have announced or completed DRP, VERA, and VSIP rounds — with more expected.

• OPM DRP: Two rounds of paid-leave-to-separation offers sent to most agencies
• DoD/DHA: $40K VSIP; multiple VERA rounds for civilian workforce
• SSA, IRS, VA: Significant voluntary and involuntary headcount reductions
• OPM processing backlog: Budget 2-4 months for retirement paperwork processing
• VERA windows: Typically 30-60 days — once closed, extensions are rare

Important Disclaimer

This quiz provides decision-support guidance based on general federal benefits rules and your self-reported answers. It is not personalized financial, legal, or benefits advice. Pension amounts, FEHB eligibility, VERA authority, and RIF standing all depend on your official OPM records and your agency's specific offer. Always request an official annuity estimate from your HR Benefits office and consider consulting a certified federal benefits specialist before making a final decision.

Should I Take the Federal Buyout?