75,000 Federal Workers Took Buyouts—What Happens to Those Who Stayed?

The federal workforce is facing an uncertain future after 75,000 government employees accepted buyout offers under the Trump administration’s deferred resignation program. The buyout program, designed to reduce the federal workforce by 5-10%, fell short of its goal, reaching only about 3% of total employees. Now, experts warn that additional workforce reductions are likely, leaving remaining employees questioning their job security and financial futures.

“For thousands of government employees, this isn’t just a career decision—it’s a financial turning point,” said Michael A. Scarpati, CEO of RetireUS. “Federal workers need to know how these buyouts affect their pensions, retirement plans, and taxes. Without the right financial strategy, they could be making decisions that cost them in the long run.”

The Office of Personnel Management (OPM) officially closed the buyout program at 7 p.m. Wednesday, following a federal judge’s ruling that lifted a court-ordered pause on the initiative. While the White House anticipated up to 200,000 employees would take the buyout, only a fraction accepted, increasing speculation about forthcoming reductions through layoffs, restructurings, and realignments.

The Impact on Federal Employees Who Stayed

For those who opted to stay, the future is uncertain. The Trump administration has made it clear that additional workforce reductions remain a priority. In a recent memo, OPM warned federal employees that they could not guarantee continued employment, further fueling concerns of potential layoffs. Many employees are now left wondering how potential changes to their benefits, job roles, and retirement plans will affect them in the long term.

“The federal workforce is shrinking, and those left behind need to get their financial ducks in a row—fast,” added Scarpati. “Whether someone took the buyout or stayed in their role, the best way to navigate this transition is with informed financial planning.”

Preparing for What’s Next

To support federal employees through this transition, RetireUS has launched Government Transition Decision HQ, a free resource hub designed to help workers understand their options and make informed financial decisions. The hub provides:

• Expert-led webinars covering buyouts, pension planning, and Thrift Savings Plan (TSP) rollovers.
• One-on-one transition reviews with independent financial professionals.
• The Federal Employee Transition Guide, including decision checklists and financial planning tools.

These resources are crucial for federal employees, particularly those navigating complex decisions about pensions, health benefits, and early retirement. Experts warn that a rushed decision without proper financial guidance could lead to unexpected tax burdens and reduced long-term retirement savings.

Workforce Reductions on the Horizon

With the buyout program closed and the administration falling short of its reduction goals, speculation is growing that additional cuts may be inevitable. The White House has already issued several directives aimed at downsizing federal agencies, including a strict return-to-office mandate and potential reductions in force (RIFs). Employees remaining in government positions are being urged to prepare for potential job eliminations and restructuring efforts.

“This isn’t just about who stays and who leaves—it’s about how federal employees can protect their financial future as agencies look to downsize further,” said Scarpati. “We’re creating this hub because people have already taken the buyout, and it’s likely that we’ll see either another buyout option or the administration will cut jobs themselves.”

What Federal Employees Can Do Now

For those concerned about their future, financial experts recommend:

1. Assessing Pension and Retirement Benefits – Understanding how different separation options impact long-term financial security.
2. Exploring Alternative Employment Options – Considering transfers to other agencies or exploring private sector opportunities.
3. Maximizing TSP and Retirement Savings – Reviewing investment options to ensure financial stability.
4. Consulting with Financial Professionals – Seeking guidance to develop a transition plan that protects against unforeseen job losses.

With federal workforce reductions becoming increasingly likely, employees must take proactive steps to secure their financial futures. Government Transition Decision HQ is now available to all federal workers for free via the RetireUS platform, providing critical insights and support as they navigate this uncertain landscape.