$40K buyouts? Time is not on your side

They say everyone has his or her price, so:

What would you do for $40,000 that you would not do for $25,000?

Depending on your finances, your moral code and what the deed actually was, there are probably a number of things many of us wouldn’t do for a mere $25,000, but would seriously consider if the payoff were raised to $40,000. What if that was the bonus you would get if you retired?

The possibility of a bigger buyout package popped up last week. It caught just about everybody by surprise and the response has been largely underwhelming.

One Federal News Radio reader said, “Give it another 6 months, show me the $40,000, and don’t look for the screen door to hit me on the way out.

“Not that I am disgruntled, but I am slowing down and (benefits expert) Tammy Flanagan keeps saying ‘One day you will walk in and know it is time’ — so I keep motivating myself, but other motivators might take me in the direction of the door. My super says it is time for me to mentor new hires — is that a sign?” Jim S.

Aside from some other comments and questions, few people have commented on the bigger-bucks-buyout even though many have said in the past they’d leave if Uncle Sam raised the reward.

Samantha, a fed in Washington state, said. “I would have left years ago, even on a reduced annuity, if the buyout had been more generous than $25,000. With deductions, mine would have been about $18,500. But after two years with no COLAs (cost of living adjustments) for retirees, and with the brutal job market, I am afraid to leave. This year, in June, I’ll qualify for a within grade (step) increase that will be worth 3 percent. And it will boost my final annuity accordingly. Where was the $40K offer when I could have used it?’

An official at a group representing mid-level professionals said he missed the first reports on the potential bigger buyout. He believes that indicates that people aren’t taking it seriously because many of his members are civilians with Army, Navy and the Air Force and many are eligible to retire. He also thinks the congressional calendar and the political season are against the idea of a bigger buyout.

“The House is out this week,” he said. And both the House and Senate have relatively few working days left before their extended summer break, then more time off to campaign. He said Congress appears to be planning to work on appropriations bill, and while it’s possible a bigger buyout could be included in a final omnibus package, that’s a long shot.

Buyouts are most effective in saving agencies money if they are given in October, November and December, the first three months of the fiscal year. That’s especially true for higher-paid employees. Getting them off early for $25,000 (or $40,000) would cut the payroll provided they weren’t replaced.

A long-time federal lobbyist said the bigger buyout is “definitely a long shot … and this being political, things are even more uncertain than usual.” On the other hand, he said, “Who would have predicted Donald Trump or Bernie Sanders would be where they are now”at the start of the campaign?

Question: Would you take a buyout, this year or in January, if it is raised to $40,000. And if not, why not? Email your answers to: mcausey@federalnewsradio.com.

Nearly Useless Factoid

By Michael O’Connell

Indiana celebrates the 200th anniversary of it becoming a state in 2016.

Source: In.gov

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