FEDERAL EMPLOYEES

WHAT TO DO DO WHEN YOU RECEIVE A SEVERANCE PACKAGE

#5 RESUMES & INTERVIEWS

Health & Life
Benefits

What you should know

A) Will I lose my Health Insurance?

1. LinkedIn is critical for private sector job search. Image: Dillxr/Shutterstock.com

By: Nancy Segal

The short answer to the question is NO. Federal and private sector resumes are quite different on multiple fronts.

Here are some of the critical differences:

• Length: Your private sector resume should not exceed 2 pages.

• Level of detail: Private sector resumes do not need the same level of detail about your work. Each of your job entries should include 3 to 5 lines of description, followed by bullet pointed accomplishments. No bullet point should exceed 3 lines of text and 1-2 lines is better.

• LinkedIn; LinkedIn is critical for private sector job search. Your customized LinkedIn URL (not the default URL you are assigned) should appear on your resume. And your LinkedIn should include your picture, a customized headline, a complete about section, and completed information about your jobs. You should not copy and paste your resume

• Applicant Tracking Software (ATS): Most private sector employers use ATS. While there is no industry standard for ATS, there are some commonalities. Your resume needs to be formatted for ATS; among other things, this means no tables (many online templates include tables—do not use them), no “cutesy” job headings, nothing smaller than 11 font and .5 margins, no contact information in the your header or footer, and of course, key words from the postings you’re targeting.

• Cover letters: In most cases, cover letters are expected when you apply for positions in the private sector. Again, your cover letters should include the key words from the postings you’re targeting and match the formatting of your resume.

• Networking: Not all private sector jobs are posted; many are not. It is not uncommon for people get jobs through those they know (or through those who know someone you know). You can mention your referral in your cover letter.

There are, of course, commonalities between federal and private sector resumes as well. These include the necessity of including powerful accomplishments to demonstrate that you have achieved results, numbers to give your work context, and a focus on the past 10 years. I promise that no one cares what you did in the 1980’s or 1990’s—or even in the early 2000’s.

See more at FEDweek Jobs
Senior Windows Systems Engineer (Government) – Security Clearance Required
AT&T | Oakton, VA

Getting a private sector job is doable and a good way to start is by preparing your private sector resume and strengthening your LinkedIn profile, followed by focusing on the kind of jobs you’re targeting and the kinds of organizations and networking.

You will have 31-days of additional Health Insurance; after the last pay period of your termination-month. It’s a temporary solution that will give you barely enough time to make a decision about how you’ll secure Health Insurance between your past position and your future employment.

2. Provided you weren’t fired for gross misconduct, you can convert the 31-day extension of your Health Benefits (FEHB or PSHB) to a Temporary Continuation of Coverage (TCC) contract that will cover you (and your household) for an additional 18 months.

It’s a great way to keep your current coverage - especially necessary if you or someone in your household is weathering a health crisis.
But, it’s also a solution that comes as a high cost. If you choose TCC, you will be responsible for not only your employee portion of the premium payment, but you’ll also pay the government portion, plus an additional 2% administrative fee. You’ll find more information at Federal Employees Health Benefits (FEHB).
Coverage under the Federal Dental and Vision Insurance Program ends upon separation.

B) Your Life Insurance

Both Federal Employees’ Group Life Insurance and Federal Employees Health Benefits coverage continue free of charge for 31 days after a RIF separation.

Health & Life in Retirement | If you are facing a severance action, know that if you qualify for retirement (ask a Federal Solutions Expert if you have questions), you can carry FEHB and FEGLI coverage into retirement under the same terms as voluntary retirees.
Life | For those not Retiring | FEGLI coverage can be continued for up to 18 months by paying both the employer and employee share of the premium plus an administrative fee.
- One reason you might want to keep your Federal Life Insurance is that you now know of a physical condition that would make you uninsurable (for Life Insurance). In this instance, especially, paying for your FEGLI Life Insurance (our of your picket) may be a good choice for you - as you can continue your current FEGLI coverage (converting it an individual policy) without needing to take a physical exam.
- Similarly, coverage under the Federal Long Term Care Insurance Program continues so long as the enrollee continues to pay the premiums.
- Depending on your circumstances, you may want to choose a non-government plan that gives you greater control of the cost, the benefits received, and even the possibility of accessing one of the newer formulations which allows your Life Insurance to double for Long Term Care Insurance. Ask a Federal Solutions Expert if you want to learn more.
Health | For those not Retiring | FEHB coverage can be continued for up to 18 months by paying both the employer and employee share of the premium plus an administrative fee.
- Coverage under the Federal Dental and Vision Insurance Program ends upon separation.

Learn More

3. Your other option is to look for an insurance plan on the Health Insurance Marketplace.
Beware of look-alike sites. This is the link to the official government site: https://www.healthcare.gov/

While Open Enrollment normally ends in mid-January, no worries - a job loss qualifies as a “qualifying event” that allows you to enroll now.
All Marketplace plans cover:
- 10 essential health benefits, including prescription drugs, emergency services, hospitalization, laboratory services, and mental health and substance use disorder services
- Free preventive health services at no cost to you when delivered by a doctor or provider in your plan's network
- If you don't have health insurance through a job, Medicare, Medicaid, the Children's Health Insurance Program (CHIP), or another source that provides qualifying health coverage, , you can find coverage through the Marketplace.

If you need one-on-one advice on which plan is best for you,
Federal Solutions has an expert who is up-to-date and
able to advise clients free of charge.

REQUEST APPOINTMENT

C) Your Mental Health

You must deal with the practical matters - financing your home, auto, your budget, and your benefits. Some people cope with stress by wanting to hide under the covers, while others bury themselves in projects. Allow those close to you to know your coping style and how they might support you as you grieve the lose of a job, income, community, and sometimes a sense of purpose.

That said, you are not your job - and what you contribute to our world, our society, and your community matters. Make sure to practice some self-care by doing the things that restore your sense of balance; meet with a friend, update your social media (i.e. LinkedIn) in a way that builds for your future and isn’t a deterrent to landing your next job.

Some places to find help include: Betterhelp.com, 988lifeline.org, Substance Abuse and Mental Health Services Administration, the American Psychological Association's Psychologist Locator, and National Register of Health Service Psychologists.

What benefits are important to you?

Which are replaceable?

Which can’t you afford to lose?

Let’s secure your future.

Request an Appointment with a Federal Solutions Expert

Real Advice from the Experts

Federal Severance & Your Benefits

More than 200,000 Federal Employees have had their roles eliminated at more than a dozen agencies in 2025. This is on-par with President Clinton’s 1990’s government-shrinking initiative which cut more than 400,000Federal Employees.

Additionally, this year 75,000 Federal Employees accepted the Fork In The Road BuyOut, an opt-in payment for voluntarily stepping down from the Federal Government.

A common question during BuyOuts, VERA Offers and Severance includes questions around loss of Benefits. If you have already qualified for Lifetime Benefits (Federal Employees Retirement System, FERS) - you remain entitled three retirement benefits.

The Basic Retirement benefit
Your Social Security benefit
Your Thrift Savings Plan (TSP) payout

If, however, you have been severed from the Federal government for cause, such as not coming into the office, you may lose benefits like health insurance and also may not qualify for unemployment benefits.

Beyond outright defiance of workplace policies, United States law states that a Federal Employee forfeits their retirement benefits when a court convicts them of one of several specific crimes, including:

Harboring or concealing persons,

Delivering defense information to aid a foreign government,
Treason,
Enlistment to serve against the United States,
False testimony before a federal court, and
Rebellion.

Should you resign rather than wait for a severance notice?

While resigning can maintain the integrity of your employment record and give you a measure of control over your employment situation, there are drawbacks;

Resigning without cause can cause you to lose your unemployment benefits.
Resigning without cause can hinder any future legal defense.
Resigning can mean that you will lose your Government-paid, Health Benefits (for life) if you have not yet met the following requirements:
- Eligibility: Determined by your age and number of years of creditable service.
- Minimum Retirement Age (MRA): You must have reached the MRA to receive retirement benefits.
- Length of Service: Add all your periods of creditable service and eliminate any fractional part of a month from the total.
- High-3 Average Pay: The highest average basic pay earned during any 3 consecutive years of service.
- Continuation of FEHB: If you wait to retire at your MRA and have had FEHB coverage for the past five years, you can continue FEHB into retirement at the same rate paid by federal employees.

If you have a Security Clearance, there is the possibility that you will lose this status (if the government deems you ineligible), or that it’s provision will expire while you are between positions.

Ask an Expert for OPM-aligned advice on next steps.