Federal Workers Delaying Retirement Because of Economic Crisis

OPM has been expecting a peak in retirements between 2008 and 2010, Kichak said, and that has not changed. "We still think we will peak between 2008 and 2010, but the peak will be lower," she said.

Jennings said hopes of better times for the federal workforce under the Obama administration may be contributing to a decision by some to put off retirement. "Given the economic realities and the excitement over the Obama administration, we may not see the tsunami," said Jennings.

"The economic turmoil certainly changes that equation, as does the change in administration," said Max Stier, president and CEO of the non-profit Partnership for Public Service.

Stier added that the aging of the federal cohort points inexorably to the departure of a large number of retiring federal workers. "At some point, we're going to be seeing people leaving. I don't think there's any question we're seeing a substantial exodus of talent."

They include people like Mary Levy, who retired Jan. 2 as division director for the General Services Administration's Consumer Information and Education office after 35 years of government service. Leaving the federal government after so many years was a hard decision. "It's become part of who I am," Levy, 60, said of her job. "I'm a wife and a daughter and an aunt, and I'm a federal employee."

The economic downturn did give her pause. "It certainly made me stop and think," said Levy. "Fortunately, I'm covered under the old civil service system. If I were under the new system, it would probably be a deterrent."

Retirees covered by the old system receive a defined benefit based on their years of service. Workers covered by Federal Employees Retirement System (FERS), which was introduced in 1987, receive some of their benefits from a thrift savings plan similar to a 401 k plan, and are therefore more vulnerable to the decline in the stock market.

"They may be less inclined to retire these days," said Jennings.

"The economic downturn was something that gave me second thoughts," said Susan Jacobs, who retired Dec. 31 from the Office of Federal Housing Enterprise Oversight, and is covered by FERS. "I wanted to be sure that I was sure."

How much of an impact the economic crisis will have on federal retirements, and for how long, is unknown. "We're just like everybody else," said Kichak. "We don't know when the economy is going to get better."

Despite the slowdown in retirements, federal agencies need to continue efforts to combat a feared "brain drain" as experienced employees leave the service, Kichak said. "Those things are things we still need to be working on," she said.

Don Drach, 59, who retired January 2 as director of international relations for the GAO after 28 years in government service, helped develop a "knowledge transfer program" to retain institutional knowledge and relationships.

"People feel an obligation not just to leave, but to leave it in good shape," he said.

Though she has delayed retirement, Bascetta has continued to prepare her staff for her departure. "The last six months, I've been much more conscious of not just giving comments, but trying to explain my thought process," she said.

Retirement remains a viable option for her because she is covered by the civil service system. "If I were in the new system, I could not retire," she said. Bascetta now thinks she will likely retire next January, a year later than intended.

For Bascetta, there is consolation over the fact that she now faces a two-hour door-to-door commute from Fredericksburg via Virginia Railway Express versus her old 20-minute drive from Arlington. "It turns out I love the train," she said.