Former Internal Revenue Service (IRS) employee Donna Talbott is among thousands of federal workers experiencing significant delays in receiving payments owed to them after opting for retirement. Talbott, who dedicated 33 years to the agency, chose to retire through a voluntary exit program but has yet to see any of the funds she is owed. The delays are attributed to staffing shortages within the agency.
Talbott’s career with the IRS was marked by a commitment to assisting taxpayers. “I absolutely loved my job,” she stated. “I helped taxpayers; I always said I worked for the good side.” However, the past year has posed challenges for federal employees, especially regarding job security and the restructuring of federal positions. In April 2023, federal workers were offered a voluntary exit via the deferred resignation program (DRP). Those who opted in were placed on paid administrative leave until September 30, 2023.
For Talbott, the decision to retire was difficult but seemed beneficial for her family and aligned with her retirement plans. While she was compensated through September, she has not received any further payments since then. “It’s the end of December now, and I have not received anything,” she expressed.
The former employee is still awaiting payments for unused vacation hours and her retirement pension. Despite her inquiries, she has been met with a lack of clarity. “I’m not even out of HR,” Talbott said. “HR is still reviewing.” She is not alone; hundreds of thousands of federal employees who opted for DRP are in the same situation.
Talbott noted the emotional toll these delays have taken, stating, “There are so many people that are hurting, that are not having a Merry Christmas, probably not a great New Year either.” She links the delays to a “lack of employees,” asserting that staff reductions in key areas have impeded the processing of retirement payments.
Part of her motivation for retiring was to care for her husband, who has a disability. She described the difficulty of seeking new employment under these circumstances. “The expectation of me finding something else right now is really limited and hard,” Talbott remarked. Financially strained, she has even turned to local food pantries for assistance.
“We have actually thought about ‘do we need to get rid of everything’ and — it’s going to make me tear up a bit — and buy a camper?” Talbott said. “Buy a trailer? Live in our car? I honestly don’t know.” Reflecting on her decision to participate in the DRP, she expressed regret if she had known the outcome would be this challenging.
The situation is not isolated. Regina Parker, president of the National Treasury Employees Union Chapter 9, highlighted that stories like Talbott’s are becoming increasingly common. The union, which represents employees in treasury agencies including the IRS, has raised concerns over the government shutdown in October and subsequent staff reductions, which have contributed to the backlog of payments. “I really think they were more concerned about getting rid of federal employees than they were concerned about what it would do to federal employees,” Parker said.
The union has consistently opposed the DRP, and Parker noted that the resolution to the payment delays remains unclear. “I tried to find an answer, but a lot of it is, we don’t know,” she said.
As for Talbott, her immediate hope is for clarity regarding the payment process and an understanding of when she and others can expect their funds. “This is not how I wanted to end my career,” she stated, echoing the frustrations of many in similar circumstances.
The ongoing delays in processing retirement payments for federal employees emphasize the broader challenges faced by government agencies in managing transitions and maintaining adequate staffing levels. The situation raises important questions about the support provided to employees during such significant changes in their careers.
