Trump's Federal Worker Buyout Isn't a Buyout. It's a Deferred Resignation

Employees who take the offer won’t have to return to the office five days a week, but whether they’ll be called upon to work is unclear.

Attendees wait for the arrival of Donald Trump for a signing ceremony in Washington, DC.

Photographer: Eric Thayer/Bloomberg
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An email from the Trump administration encouraging federal government workers to resign has caused confusion among agency employees and the public. The missive offered workers a “deferred resignation program,” under which those who choose to opt in would retain their full pay and benefits through September. They also would be exempt from the government-wide return-to-office mandate.

Many headlines have called the offer a buyout. But that’s not accurate, said Betsey Stevenson, a professor at the University of Michigan and former chief economist of the US Department of Labor. A buyout is typically a lump sum paid to departing employees who, upon their voluntary resignation, give up access to the organization’s information and systems and cease working for their now-former employer. That’s not what’s happening here, she said.