FEDERAL EMPLOYEES

TERMINATION, SEVERANCE | NEXT STEPS

#1 MINIMIZING FINANCIAL STRESS

Minimizing
Financial Stress

Take these 3 Steps Immediately

1) Save your Personnel File

A. Save a copy of your most recent employment application.

B. Save a copy of your SF-50
Contact the HR office within your agency for access to your records.

Or, if you have already been severed, get a copy of your most recent SF-50 and a copy of your entire Official Personnel Folder from the National Archives and Records Administration:

Mail Request to: National Personnel Records Center (civilian)
411 Boulder Blvd, Valmeyer, IL 62295 or Fax: 618-935-3014 (OPM Resource)
Include: 1) Full name, 2) Date of birth, 3) Social security number, 4) Last employing agency and duty station, plus approximate employment dates,
5) Specific documents or information needed, plus the purpose of your request, and 6) Your Signature
Federal law [5 USC 552a(b)] requires all record-requests be in writing, hand signed and dated within the last year.

You lost more than your job.

Your sense of security, trust, and purpose have all taken a toll.

And then, there’s the impact on your relationships and sense of well-being.

Job loss costs.

But you’re not alone. We’re committed to helping you connect with the best resources and advice.

2) Create a Quick Look at Your Budget

Whether or not your receive a Federal Severance or Unemployment (C-Below), you may want to reduce your stress with a plan to tighten your belt for 12-months, stretching available income and minimizing expenses.

This is not a forever-plan, and (in reality) you may have a new job in a few months. But, during the job-search stage, you can reduce some of the stress by having a plan that keeps you and those in your keeping, safe.

A. Let’s begin by sketching out a quick budget. Download the budget worksheet; then sketch out your possible sources of income - with the goal to only dip into savings as needed.

Federal Employee Severance - Minimizing Financial Stress with a Budget

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B. Circumstances differ but often penalties are high when you dip into savings - ask an Expert if you need advice about what to spend and what to save.

C. Then, list all the expenses you can think of; consider which things might be reduced for a short period of time. The goal is to make total severance and unemployment last as long as 12-months (just in case). Because, having a plan keeps safe.

Severance pay accrues on a day-to-day basis following separation from Federal employment.

Payments are scheduled to align with your former salary payment amount and timeline (minus usual deductions like Social Security).

Make decisions about your Health and Life Benefits, for you and your household.

Federal Employee Severance - Minimizing Financial Stress by making choices about health

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3) Secure Income Streams

A. Calculate Your Severance Pay (OPM Worksheet)

Severance pay is authorized for full and part-time employees who are involuntarily separated from Federal service and who meet other conditions of eligibility.
To be eligible for severance pay, you have to have worked for the Federal Government, under a qualifying appointment, have a regularly scheduled tour of duty, have completed at least 12 months of continuous service, and be removed from Federal service by involuntary separation for reasons other than unacceptable performance or conduct.
(Read the full List of Qualifying and Non-Qualifying Appointments at OPM.)

Get an Appointment with a Federal Solutions Expert

B. Apply for State-Sponsored Benefits; government programs that provide cash, resources, or other assistance during job transitions can lift a bit of the stress during this tough time.

Unemployment | begin by contacting your state's unemployment insurance program as soon as possible after becoming unemployed. Some states have provisions that allow federal employees to collect unemployment. Many states allow residents to apply for benefits online, but you may also be able to call or visit your state's unemployment office.
- In general, the law of the state in which your last official duty station in federal service was located will be the state law that determines eligibility for unemployment insurance benefits, benefit amounts, number of weeks benefits can be paid, waiting periods before benefits begin, and other conditions.
- The Department of Labor has a listing of state offices at www.careeronestop.org/LocalHelp/service-locator.aspx.
- To support a claim, you will need a Social Security card, official notice of the separation (SF 50, Notification of Personnel Action), and a Standard Form (SF) 8, Notice to Federal Employee About Unemployment Compensation (provided on your last day of duty). Do not wait to file your claim for unemployment compensation benefits until these forms are received as it may affect your eligibility.
- Payments you receive such as severance pay, retirement annuity, incentive pay, or lump sum annual leave may affect your eligibility for unemployment compensation. The applicable state agency will make that determination.
Temporary Assistance for Needy Families (TANF)
Temporary assistance for needy families (TANF) is federally funded, but each state has its own program. If your family is eligible, you may be able to get help with food, housing, child care, home bills, and job training.
Each state and tribal territory in the U.S. has its own set of rules for which residents are eligible. You can find information on your state's TANF program at the U.S. Department of Health and Human Services website (links to all 50 States).
Energy Assistance | The LIHEAP and WAP programs help pay for heating, cooling, and home weatherization. Learn if you are eligible and how to apply. And get help if your utilities were disconnected. https://www.usa.gov/help-with-energy-bills
Veterans Benefits
If you previously served and are currently unemployed, you may want to contact the VA's Veteran Readiness and Employment (VR&E) program, which can help with job training, education, employment accommodations, and other skills.
There are also other programs available, like America's Service Locator, that can connect vets with programs to help them land a new job.

3. Request changes to your home and auto loans NOW | Make these calls immediately as requests are much more likely to be honored before you get behind on payments.

Mortgage | Mortgage forbearance along with a deferment may provide much-needed relief during this time. Rather than wait until you’re in dire-straights, be proactive, go in and see if you can negotiate a change in payments for a temporary period of time. When you request a deferment, you’re asking to skip a few payments, moving them to the end of your loan, when you pay off your mortgage.
When you request a mortgage forbearance, you’re asking for a temporary pause or reduction in your mortgage payments while you work through this temporary financial hardship. The paused payments aren’t forgiven but repaid at the end of either the forbearance period or the loan term, along with the accrued interest. Be prepared to show evidence of your hardship (your termination letter), documentation around income and assets and any other bills or expenses.
Car Loan Deferment | You must be current on your loan payments for a deferral to be granted, Not all auto lenders grant loan deferments, but it doesn’t hurt to ask as they don’t want you to default on your auto loan either. Be prepared to calmly explain your situation and request a deferment that allows you to skip your payment altogether, reduce your payments or only pay the interest until your next scheduled payment. Any skipped or reduce payments will be added to the end of your repayment term.

C. Accessing your Leave and Earnings Statements or TSP after severance

If you are able, go in and change your contact information on your account prior to leaving. But, rest assured that you can go online or place phone call to make any necessary changes.

Your Federal Solutions Expert helps Federal Employees like you make these updates every day. You are not alone.

3 Steps you need to take immediately. Let's solve for the three big stressors: 1) Income, 2) Health & Life Benefits, 3) Keeping your Home and Auto.
OPM-aligned advice during times of Federal transition and job upheaval. Real advice from the Experts at Federal Solutions.

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Real Advice from Experts

How a Reduction in
Force works according to the Office of Personnel Management

When an agency conducts a significant job reduction, it must use formal reduction in force procedures published by the Office of Personnel Management (OPM). The following information is excerpted directly from OPM.

As defined in 5 U.S.C. 3595(d), a Reduction in Force (RIF) includes the elimination or modification of a position due to reorganization, lack of funds, curtailment of work, or any other factor. These would include OPM withdrawal of SES spaces, a total agency shutdown, or the determination that a position no longer meets the criteria for inclusion in the SES.

These rules create four standards for determining which employees are released, and which are retained, either in their current positions or in another position:

Tenure group (permanent vs. term/temporary appointment)
Veterans preference
Length of service
Performance ratings

An agency is required to use the RIF procedures when an employee is faced with separation or downgrading for a reason such as reorganization, lack of work, shortage of funds, insufficient personnel ceiling, or the exercise of certain reemployment or restoration rights.

RIF Retention Register

The four retention factors are applied and the competitive level becomes a retention register listing employees in the order of their retention standing (except at the Defense Department as described below):

1) Tenure. Employees are ranked on a retention register in three groups according to their types of appointment:

Group I—Career employees who are not serving on probation.
Group II—Career employees who are serving a probationary period, and career-conditional employees.
Group III—Employees serving under term and similar non-status appointments.

2) Veterans Preference. Each of the three groups, above, is divided into three subgroups for veterans:

Subgroup AD—Veterans with a compensable service-connected disability of 30% or more.
Subgroup A—Veterans not included in subgroup AD.
Subgroup B—Nonveterans.

A retired member of the Armed Forces is considered to be a veteran for RIF purposes only if one of the following conditions is met:

the armed forces retired pay is directly based upon a combat-incurred disability or injury;
the armed forces retirement is based upon less than 20 years of active service; or
the employee has been working for the government since November 30, 1964, without a break in service of more than 30 days.

3) Length of Service. Employees are ranked by service dates within each subgroup. The service dates include creditable civilian and military service, and additional service credit for certain performance ratings.

4) Performance. Employees receive extra RIF service credit for performance based upon the average of their last three annual performance ratings of record received during the four-year period prior to the date the agency issues RIF notices.

If an employee received more than three annual ratings during the four-year period, the three most recent annual ratings are used. If an employee received fewer than three annual ratings during the four-year period, credit is given for an assumed rating of “Fully Successful” to bring the employee’s ratings up to three, regardless of the employee’s actual length of service.

Employees are released from the retention register in the inverse order of their retention standing (such as the employee with the lowest standing is the individual who is actually reached for a RIF action). All employees in Group III are released before employees in Group II, and all employees in Group II are released before employees in Group I. Any employee reached for release out of this regular order must be notified of the reasons.

5) Severance pay is paid to permanent employees with at least one year of service who are separated through no fault of their own, such as in a RIF.

Flexible spending accounts are closed on separation. Unspent money in a health care FSA is not refunded, although claims for purchases up to the date of separation still will be paid. Unspent money in a child care FSA will remain available for use through the plan year.

6) Your Insurance will be covered for the first 31-days. After that, each individuals’ decision is as unique as their circumstances. Talk to Federal Solutions Expert; we do not sell Health Insurance - so our straight talk has nothing but your best interests in mind.

7) Retirement during RIF is allowed during a RIF at standard age and service requirements. Employees also may elect a deferred annuity at age 62 if they have at least five years of service at separation. FERS employees also are allowed a deferred annuity at their minimum retirement age with 10 years of service, although the annuity is reduced 5 percent for each year the annuitant is under age 62 when benefit payments begin.

Sound confusing?
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OPM-aligned advice from the Federal Employee Benefits Experts