What If I Get Fired?

I wish this article didn’t have to be written, but I’ve had this same conversation with many people over the last few weeks. So clearly there is a need for this.

Unfortunately there is a lot of bad information going around, some of it even coming from agencies’ headquarters. I don’t know if they are ignorant, or just trying to threaten employees, but the following is what actually happens to your FERS benefits if you get fired.

This article is full of links. And that’s intentional. I want you to be able to research for yourself what happens for your situation. I also want you to have the ability to refute others who are merely regurgitating falsehoods.

Annuity, aka The Pension

There are some nuances here based on how long you have on, but the general rule is that you won’t lose what you’ve already accrued as far as time on, and your average High-3 salary at the time you leave the government.

• If you have at least 5 years of creditable FERS service time, you will be eligible to file for a retirement at age 62.

• If you have 10 years on, you can file as early as your Minimum Retirement Age (MRA), but your pension will be reduced 5% for every year you are under 62. And that reduction is permanent.

• If you have 20 years on, you will be able to file for the reduced pension at your MRA, or an unreduced pension at age 60.

• If you have 30 years on, you can file for an unreduced pension at your MRA.

These years will be calculated at 1% per year, even if you are LEO and would normally get 1.7% a year. The percentage would apply to your average High-3 salary.

Here are a few examples:

1. John has 6 years on and gets fired. John would only be able to apply for a retirement at age 62. At that time, he would get 6% of his High-3.

2. Mary has 12 years on and gets fired. Mary has the choice of filing for a reduced pension at her MRA (let’s say it’s 57 years of age). Because she is filing under the MRA +10 rule, she will have her pension reduced 5% for every year she is under 62. So in this case, they will reduce her pension by 25%. Say her High-3 is $60,000. The calculations would be like this: 12% x $60,000 = $7,200. $7,200 - 25% = $5,400. That is what Mary would get annually. If she wanted to avoid a reduction, she could wait to file until age 62 and then she would get the full 12% x $60,000, or $7,200 a year.

3. Jacob has 22 years on and gets fired. He is eligible for a reduced pension at his MRA, or a full pension (22%) at age 60. If Jacob was a LEO, he would normally get 36% for 22 years of LEO service, but if he does not actually retire, he would only get 1% per year of his service, so 22 years x 1% a year = 22%.

4. Michelle has 4 years on and gets fired. Michelle doesn’t meet the minimum 5 years so she would not be eligible for any retirement. Her only option would be to ask for a refund of all FERS contributions that she had contributed toward her retirement for the 4 years she employed. Incidentally, anyone can get a refund of their FERS contributions when they separate from the government. But most people that have 5 years or more on would probably not want to go this route.

There are probably more combinations and examples, but this should cover most scenarios.

CAVEAT: If you are getting fired for a crime against the United States, like treason, espionage, etc., you may, and probably will, lose whatever pension you have accrued. There is a specific rule for those types of convictions. See 5 USC 8312.

But this applies only to those crimes. There is a pervasive rumor out there that you don’t get a pension if you get fired. Not true in the vast majority of the circumstances.

FEHB, aka Health Insurance

This is pretty straightforward. Your FEHB coverage officially terminates your last day of employment. However, there is a 31 day grace period where you stay on your plan. So, in effect, you get 31 days of additional health insurance.

If you would like to continue health insurance after that, you are generally eligible for 18 months of Temporary Continued Coverage that you will pay for completely. You are eligible to purchase this insurance unless you are fired for “gross misconduct.” Is refusing to get the vaccine considered “gross misconduct”? Well, we don’t really know since no one’s ever been fired for that yet, but I would hope it would not rise to that level.

FEGLI, aka Life Insurance

This is very similar to FEHB. You lose it completely 31 days after your last day. You can pay to have it converted into a private life insurance policy that you would pay for. This may or may not be better than getting a private policy elsewhere. You’d have to research it.

FEDVIP, aka Dental and Vision

These both end the day your career ends. No 31 day extension. No ability to convert into a private policy.

FSA, Flexible Spending Account

Your FSAFEDS coverage terminates when you separate from the government.

Sick Leave

Your sick leave balance is forfeited. You get no credit for it. However, if you do come back to work for the government in the future, your balance gets reinstated and you continue to accrue it from where you left off.

Annual Leave

Just like when you retire, you will get a lump sum payment of any annual leave balance.

Thrift Savings Plan

There have been some terrible rumors going around about this, some coming from HQ components. You do NOT have to pay back agency matching and the 1% agency automatic if you get fired. ASSUMING YOU HAVE 3 YEARS OF SERVICE. You become vested in your TSP after 3 years (2 years for SES). Once you are vested, balances are “nonforfeitable”. This is set by LAW, people. Your agency has no control over this.

And you agency heads that are threatening people with this to try to manipulate them should be ashamed of yourselves.

You can familiarize yourself with the links above and also at 5 USC 8432(g)(2)(B).

Summary

This is what happens in general to your FERS benefits if you get fired. There may be certain specifics to your situation that may tweak some of these a little bit. For example, if you are a 43 year old, Fed LEO, and you have 22 years on, and you get fired, you could get rehired at age 50 or later in any FERS covered position, work for one pay period and retire with full benefits, including FEHB for life and the 1.7% computation.

My point is you need to REALLY research your specific circumstance and all of the options and consequences that may be applicable to you.

As I have written before: I don’t tell you who to vote for, I don’t tell you what church to go to, and I don’t tell you what medical treatment you should get. It’s called Barfield Financial, not Barfield Medical. It will also do no good for you to email me ranting about why everyone should “just get the vaccine because they’re killing others with their freedom”, or why “no one should get the vaccine because it’s the mark of the beast”. I provide FERS benefit education. Period.

If you are eligible to retire, or you are so close that there are ways you can get there, I would encourage you to consider that route vs getting fired. I know some of you feel deeply about things, and ultimately it’s your choice, but given the published timelines for various exemption requests, appeals, lengths of punishment, and the amount and types of leave you have, you may be able to get to retirement and avoid being fired altogether. Get creative. Just something to think about.

People ask me all the time if I think they will actually get fired if they don’t get the vaccine. Or if they do get fired, will they get their jobs back with back pay, like former FBI Deputy Director Andrew McCabe.

The bottom line is this: it doesn’t matter what I think.

The government has never once checked with me before they did something, and I’m certain they won’t start now. As I wrote in last month’s newsletter, my opinion has always been this: the more that refuse, the harder it is to fire everyone (aka Southwest Airlines). If you’re the only person in your agency not vaxxed, you’re a pretty easy problem for them to solve. If your agency is only 60% vaxxed and that would require firing 4,000 employees, I’m not sure that will happen. But this is just my opinion. I know no more than any of you. Do not make life altering decisions based on what some guy on the internet wrote!

Good luck, everyone!