What changed: OPM's final rule on paid leave before a deferred resignation, buyout, early-out or RIF
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Published October 27, 2026 · By the OnPAR Federal Retirement Education editorial team · Last updated
Short answer: OPM published a final rule on October 19, 2026 that writes its workforce-realignment leave policy into the regulations. It takes effect November 18, 2026. Agencies may give paid administrative leave to employees who sign an agreement to leave on a set future date (deferred resignation, buyout or early retirement), and to employees who get a reduction-in-force (RIF) notice. Agencies may also refuse to let you take back a resignation once you have accepted deferred-resignation benefits. Nothing requires an agency to offer this leave, and staying on duty is still the normal rule during a RIF notice period.
What changed (5 CFR Parts 351, 630 and 715)
- Leave before a planned separation. Agencies may give extended administrative leave to employees who sign a written agreement to leave voluntarily on a set date. The rule names deferred resignation programs, voluntary separation incentive payments (buyouts) and voluntary early retirement (VERA) as examples (new 5 CFR 630.1403(c)(9)).
- Leave during a RIF notice period. Agencies may give administrative leave between the RIF notice and the RIF separation when they decide it is in the government's best interest (new 630.1403(c)(10)). The RIF rule now says that "under ordinary circumstances" you stay in a duty status during the notice period (revised 351.806).
- Taking back a resignation. An agency may accept or decline a request to withdraw a resignation before it takes effect. To decline, it needs a valid reason and must explain it to you. Valid reasons include administrative disruption, hiring a replacement, or your having accepted benefits under a deferred resignation agreement (revised 715.202(b)).
- It's the agency's call. Administrative leave stays at the agency's "sole and exclusive discretion." It can't be promised as an entitlement in an agreement.
- Time limits. OPM says the governmentwide limit since calendar year 2026 is 12 weeks of workforce-realignment leave in any one instance, unless OPM and the Office of Management and Budget (OMB) approve more. A 6-month limit was approved for workforce-restructuring deferred resignation agreements that took effect in fiscal year 2026. Your agency may set a shorter limit, but not a longer one.
Who it affects
- Employees offered a deferred resignation, a buyout or a VERA early-out.
- Employees who get a RIF notice.
- Anyone who has signed a deferred resignation agreement and is thinking about withdrawing it.
Why it matters for your retirement
Under OPM's definition, administrative leave is paid leave given without loss of or reduction in pay, leave, or credit for time or service (5 CFR 630.1402). So under that definition, time on administrative leave before your agreed separation date doesn't reduce your credit for service. What matters for your annuity is which retirement rule you meet on your separation date.
Worked example (using OPM's rules)
Pat is 53 with 26 years of FERS service and a high-3 average salary of $95,000. Pat's agency has VERA authority, and Pat signs an agreement to retire on a set date, then spends the weeks before it on administrative leave.
- Eligible? Yes. OPM's early-retirement rule is age 50 with 20 years, or any age with 25 years. Pat has 26.
- Pension: under 62, so the 1% formula applies: 1% × $95,000 × 26 years = $24,700 a year (about $2,058 a month).
- Age reduction? None. OPM's 5%-a-year age reduction applies to MRA+10 retirements, not to FERS early retirement. (Only a CSRS component, for people who transferred from CSRS, is reduced if they retire early under age 55.)
- Full survivor benefit: a 50% survivor benefit cuts the annuity by 10%, to $22,230 a year (about $1,853 a month).
- Without the VERA offer, Pat is under the Minimum Retirement Age (57 for anyone born in 1970 or later), so leaving would mean a deferred annuity, not an immediate one.
This is an example only. Your agency's offer, your exact service and your high-3 decide your real numbers.
What to do next
- Get it in writing. If you are offered an exit, ask HR for your separation date, whether you will be on administrative leave and for how long, and your retirement eligibility on that date.
- Think before you sign. Once you accept deferred resignation benefits, your agency may refuse to let you withdraw.
- Run your numbers: find your MRA and earliest dates with the Retirement Date & MRA calculator, estimate your annuity with the Pension calculator, and see how long your TSP lasts with the TSP Withdrawal calculator.
- Read more: the new RIF rule, DRP and VERA and deferred vs. postponed retirement.
Official sources
- Federal Register: Administrative Leave for Workforce Realignment and Other Purposes, final rule (91 FR 65924, Oct 19, 2026; effective Nov 18, 2026)
- eCFR: 5 CFR 630.1402, definition of administrative leave
- OPM: FERS eligibility (immediate, early, deferred)
- OPM: FERS computation (formula, age reduction, survivor reduction)
