How to Prepare for Federal Layoffs and RIF: Tips for Protecting Your Career, Benefits, and Future

Watch this video to help you prepare

As federal agencies reduce staffing levels to pre-pandemic norms, many of us may soon face Federal Layoffs or Reduction in Force (RIF) actions. Estimates suggest that up to 80,000 layoffs could occur across the federal workforce, with the Department of Veterans Affairs (VA) among the most impacted.

As someone who is undergoing the same experience, I want to share my journey and offer guidance to help you proactively prepare. My goal is to equip you with the steps, resources, and understanding necessary to manage this transition with as much confidence and clarity as possible.

Understanding the Federal RIF Landscape

These projected layoffs are part of a broader federal initiative to return staffing and spending levels to those seen before the COVID-19 pandemic. For many of us, this shift is difficult to process—both emotionally and logistically.

While these cuts may have sound fiscal reasoning, their impact on our careers and families is real. Now is the time to gather information, review our options, and take meaningful steps to safeguard our finances and career paths.

Immediate Steps to Prepare for a RIF

Here is a comprehensive checklist of actions to take immediately if you are a federal employee at risk of separation.

1. Review and Secure Your Personnel Records

Access and save copies of your employment documentation, which will be crucial for retirement planning, unemployment claims, or future job applications:

• Download all SF-50 forms through the eOPF (Electronic Official Personnel Folder) system.

• Review recent W-2s, Leave and Earnings Statements (LES), and beneficiary designations.

• Ensure your personal information (such as address and marital status) is up to date across all systems.

• Begin this process early, as downloading your eOPF file may take several days.

2. Understand Your Leave Benefits and Entitlements

Federal employees leaving government service may be eligible for certain leave payouts:

• Annual Leave: Paid as a lump sum.

• Compensatory Time: May be paid out, depending on agency policy.

• Sick Leave: Not paid out in cash but may be credited toward years of service for retirement purposes.

Utilize the Government Retirement and Benefits (GRB) Platform or your agency’s internal tools to estimate potential payouts and confirm eligibility.

3. Protect Account Access and Benefits Information

After separation, access to government systems becomes limited. Before that happens:

• Record and store passwords for systems such as TSP, eOPF, and HR Smart.

• Confirm beneficiary information for:

  • Thrift Savings Plan (TSP)

  • Federal Employees' Group Life Insurance (FEGLI)

  • FERS/CSRS Retirement and Survivor Benefits

4. Evaluate and Strategize Your Thrift Savings Plan (TSP)

Your TSP will remain a key part of your financial portfolio even after leaving government service. Understanding your options now can help you avoid penalties and lost opportunities. Key considerations:

• You may leave your balance in TSP if you are not ready to move it.

• If you are age 59½ or older, you may take age-based withdrawals (up to four annually).

• Financial hardship withdrawals are available at any age, though they may incur a 10% early withdrawal penalty if you are under 59½.

• Consider rolling over TSP funds to a traditional or Roth IRA, depending on your tax strategy.

• Before making any moves, consult with a certified financial planner—particularly if you're considering investment options such as real estate through a self-directed IRA.

Ethical and Legal Considerations for Post-Federal Employment

Federal ethics rules may limit your post-separation employment options with certain contractors or vendors. Depending on your position, a “cooling off” period of 1–2 years may apply to working with entities that had business relationships with your agency. Before accepting new employment, consult with your agency ethics officer or legal counsel to ensure compliance and avoid conflicts of interest.

Voluntary Early Retirement and Buyout Programs

Your agency may offer early retirement or separation incentives to reduce staff voluntarily. These programs include:

Voluntary Early Retirement Authority (VERA)

• Must be approved by the Office of Personnel Management (OPM).

• Eligibility typically requires:

  • Age 50 with 20 years of service, or

  • Any age with 25+ years of service.

• Agencies may request exceptions to these requirements under certain circumstances.

Voluntary Separation Incentive Payment (VSIP)

• Also known as a “buyout.”

• May offer up to $25,000, depending on agency funding and position.

• Can be offered in combination with VERA or independently.

These options may provide a more controlled and financially advantageous exit from federal service compared to involuntary separation.

Severance Pay: What to Expect

If you are laid off without qualifying for VERA or VSIP, you may still be eligible for severance pay:

• Based on base salary (excludes locality pay).

• Calculated using age and years of service.

• Capped at $25,000, regardless of calculated amount.

Tools are available on the OPM website to estimate potential severance based on your service history and earnings.

Final Preparation Checklist

To ensure a smoother transition, federal employees should consider the following action steps:

1. Download and store all relevant HR and personnel records.

2. Review leave balances and estimate lump sum payouts.

3. Verify and update beneficiary information.

4. Examine TSP options and consult with a financial advisor.

5. Understand your eligibility for early retirement or buyout programs.

6. Investigate ethical and employment restrictions for future roles.

7. Prepare for unemployment by researching filing procedures for your duty location.

Conclusion: Take Control of What You Can

While the possibility of a RIF is unsettling, the most productive response is preparation and proactive decision-making. Understand your rights, review your benefits, and create a strategy that secures both your short-term stability and long-term financial health.

This is a challenging time, but with the right tools and planning, it can also be a turning point toward new opportunities and financial independence.