Terminated/RIF

After Your Official Separation

Your separation date has arrived. Here is everything you need to know about final pay, benefits continuation, retirement accounts, and the practical steps to take after leaving federal service.

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Final Paycheck and Leave Payout

What to Expect in Your Final Pay

Your final paycheck will typically be processed within one to two pay periods after your separation date. It should include:

Regular pay: Salary earned through your last day on the payroll
Lump sum annual leave payout: Payment for all unused annual leave at your current rate of pay, including locality pay
Compensatory time: Payment for any unused compensatory time at the applicable rate
Credit hours: Payment for unused credit hours (if applicable under a flexible work schedule)
Awards: Any pending performance awards or bonuses that were approved before your separation

Note on lump sum leave payout: The annual leave lump sum is paid at your hourly rate and projected forward as if you were still employed. This means your FEHB coverage may extend beyond your separation date for the duration of the leave payout period, but you will still need to make an election for continuing coverage after that period ends.

Health Insurance (FEHB) Continuation

The Federal Employees Health Benefits (FEHB) program provides several options for continuing your health insurance after separation:

31-Day Free Extension

Your FEHB coverage automatically continues for 31 days after your separation date at no cost to you. During this period, your coverage is identical to what you had as an employee.

Temporary Continuation of Coverage (TCC)

You may elect to continue your FEHB coverage for up to 18 months after the 31-day free extension. Under TCC, you pay the full premium (both the employee and government shares) plus a 2% administrative charge. You must elect TCC within 60 days of your separation date. This is the federal equivalent of COBRA.

Conversion to Individual Policy

At the end of TCC (or instead of electing TCC), you may convert your FEHB coverage to an individual policy offered by your health plan carrier. The conversion policy is guaranteed issue (no medical underwriting), but premiums may be higher than group rates.

Healthcare Marketplace

Losing your job-based health coverage qualifies you for a Special Enrollment Period on the Healthcare Marketplace (healthcare.gov). You have 60 days from your loss of coverage to enroll. Depending on your income, you may qualify for premium tax credits or cost-sharing reductions.

Life Insurance (FEGLI)

Your Federal Employees' Group Life Insurance (FEGLI) coverage continues for 31 days after separation at no cost. After that:

Conversion right: Within 31 days of separation, you may convert your FEGLI Basic and Option A coverage to an individual policy without a medical exam. Option B and Option C cannot be converted.
Portability: You may port your FEGLI Basic coverage if eligible, allowing you to continue group coverage at your own expense.
Contact the Office of Federal Employees' Group Life Insurance (OFEGLI) at 1-800-633-4542 for conversion information.

Thrift Savings Plan (TSP) Options

After separation, you have several options for your TSP account:

Leave It in the TSP

You can leave your money in the TSP, where it will continue to accrue investment returns. You cannot make new contributions, but you can change your investment allocations. This is often the simplest option and may offer lower fees than private sector alternatives.

Roll Over to an IRA or New Employer Plan

You can roll over your TSP balance to a traditional IRA, Roth IRA (for Roth TSP contributions), or a new employer's eligible retirement plan. A direct rollover (trustee-to-trustee transfer) avoids tax consequences and penalties.

Withdraw Your Money

You can take a full or partial withdrawal. However, if you are under 59½, you may owe a 10% early withdrawal penalty in addition to income taxes. There are limited exceptions to the penalty, including separation from service during or after the year you turn 55.

TSP Annuity

You can purchase a life annuity with all or part of your TSP balance through the TSP's annuity provider. This provides guaranteed monthly income for life.

Important: If your TSP account balance is less than $200, it will be automatically paid out to you after separation. If the balance is between $200 and $1,000, the TSP will attempt to contact you, and if no instructions are received, may transfer the balance to an IRA. Visit tsp.gov for current rules and thresholds.

SF-50 and Employment Records

Your separation SF-50 (Notification of Personnel Action) is one of the most important documents you will receive. It is the official record of your separation and will be needed for:

Future federal employment applications
CTAP and ICTAP eligibility documentation
Retirement benefit applications
Veterans' preference verification
MSPB appeal documentation

What to verify on your separation SF-50:

Nature of Action Code (should reflect RIF separation, typically code 351)
Your correct grade, step, and salary
Service computation date
Retirement plan (FERS or CSRS)
FEHB enrollment information

If you find errors on your SF-50, contact HR immediately and notify your union. Errors on the separation SF-50 can affect your future benefits and employment eligibility.

Applying for Unemployment Insurance

Federal employees separated through RIF are generally eligible for Unemployment Compensation for Federal Employees (UCFE). Key information:

Where to file: File with your state's unemployment insurance agency, even though you were a federal employee. The state administers the program, but the federal government reimburses the state.
When to file: File as soon as possible after your separation date. Most states have a one-week waiting period before benefits begin.
Required documents: You will need your SF-8 (Notice to Federal Employee About Unemployment Insurance), which your agency should provide at separation. You will also need your SF-50 and recent pay stubs.
Benefit amount: Determined by your state's formula, typically based on your highest earning quarter during a base period.
Duration: Benefits typically last up to 26 weeks, though this varies by state and may be extended during periods of high unemployment.
Job search requirement: You must be actively seeking employment and available for work to continue receiving benefits.
Lump sum leave payout: Your lump sum annual leave payout may affect when your unemployment benefits begin, depending on your state's rules.