Who is this quiz for?

Any federal employee weighing a DRP (Deferred Resignation Program), VERA (Voluntary Early Retirement Authority), VSIP (Voluntary Separation Incentive Pay), or deferred-resignation offer. It is also useful for employees evaluating whether to leave voluntarily before a potential RIF. The quiz covers FERS employees; CSRS users can still use it but some pension logic differs.

What does the "decision score" mean?

The quiz evaluates eight dimensions — retirement eligibility, offer type, financial runway, RIF risk, FEHB 5-year rule, TSP penalty exposure, spousal income, and risk tolerance — and assigns weighted points to each answer. Scores of 65+ indicate a strong case to take the offer; 40-64 is a caution zone; under 40 suggests staying is likely the better financial outcome. The score is a decision-support tool, not a definitive answer.

What is the FEHB 5-year rule and why does it matter?

To carry FEHB (federal health insurance) into retirement, you must have been continuously enrolled for the 5 years immediately before your retirement date. If you separate without meeting this rule, you permanently lose access to FEHB at retiree rates. Replacing that coverage on the private market can cost $12,000–$25,000 per year for a family.

What is the TSP Rule of 55?

Federal employees who separate from service during or after the calendar year they turn 55 can make penalty-free withdrawals from their TSP accounts. If you separate before age 55, the IRS imposes a 10% early-withdrawal penalty on any TSP distributions until you reach 59½. This can meaningfully affect how much of your TSP balance you can access during the transition period.

Can I collect both VSIP and RIF severance?

No. If you accept a VSIP payment and are later re-employed by the federal government, you must repay the VSIP before returning to work. More importantly, you cannot collect both VSIP and RIF severance for the same separation — accepting a voluntary VSIP forfeits eligibility for involuntary severance. This is one reason why accepting a VSIP before a RIF materializes is often advantageous: you secure guaranteed cash rather than waiting for an uncertain RIF outcome.

What is the DRP (Deferred Resignation Program)?

The DRP, sometimes called a "fork in the road" or "paid leave" offer, allows employees to accept a separation offer and move to paid administrative leave through a specified end date, after which their resignation becomes effective. Unlike VSIP, the DRP typically involves no lump-sum cash payment beyond continuing regular salary through the paid leave period. Employees on DRP generally cannot perform their regular duties, so it functions as a paid transition period to prepare for departure.

What is the MRA for FERS employees?

The Minimum Retirement Age (MRA) depends on your birth year. Employees born in 1970 or later have an MRA of 57. Those born 1953-1964 have an MRA of 56, with a transitional range between 56 and 57 for birth years 1953-1970. MRA+10 means you can retire immediately once you reach MRA with at least 10 years of service, but your annuity is reduced 5% for each year you are under age 62.

Does sick leave count toward VERA eligibility?

No — unused sick leave does NOT count toward the service thresholds for VERA eligibility (20 or 25 years). However, it does convert to additional service credit for your pension calculation at the rate of one year per 2,087 hours. So while sick leave won't get you over the VERA eligibility threshold, it does add to your monthly pension once you're eligible.

How accurate is this quiz?

The quiz uses the official FERS retirement framework and established federal benefits rules to generate its recommendation. However, it relies entirely on self-reported answers — it cannot access your actual OPM records, service computation date, or agency-specific offer terms. Always verify your situation with your HR Benefits office and request an official annuity estimate before making a final decision.

Decision Quiz

Should I Take the Federal Buyout?

DRP, VERA, VSIP, or deferred resignation: this 8-question quiz evaluates your retirement eligibility, benefits status, and financial situation to give you a clear recommendation — with the reasoning behind it.

Reviewed by Jonathan D., 20-year federal employee · Formulas verified against OPM.gov · Updated June 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 is stored. Decision-support only, not financial advice.

How the quiz works

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

Federal buyout decision scoring dimensions
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 early-out penalty

VSIP $25K standard / $40K DoD, ~$17–30K 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 at a standard date

Valuable if you need time to prepare your next step

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 the 5-year reemployment restriction

Deferred Resignation

Agree to resign now 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 be 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 the TSP without the 10% IRS early-withdrawal penalty. If you're under 55 at separation, that penalty applies to 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 your MRA — not until age 62. For a 56-year-old with an MRA of 57, that is a 1-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 collect 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 the 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 30–90 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.

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