The very, very small $40,000 buyout club

When the Defense Department got the authority to offer $40,000 buyouts last year, lots of people—from the EPA to Departments of State and Agriculture—were delighted. Why?

Because feds who wouldn’t consider the standard $25,000 (before deductions) buyout were more likely to pull the plug for almost twice as much money. Many younger and mid-career workers also would welcome a surge in buyout triggered retirements which would open up the clogged promotion pipeline in many office. Some retirement eligible feds hoped (assumed, prayed) that Congress would soon extend the super-VSIP (voluntary separation payment authority) to other agencies. After all there is precedent.

In the 1990s, when the Clinton administration was dramatically downsizing government, Congress OK’d $25,000 buyouts (roughly $17,000 to $18,000 after deductions). They were first limited to the Defense Department. The idea was to entice older workers with veterans preference into retirement so the job cuts wouldn’t affect more recent hires who would have been hit by the last-hired-first-fired rules of downsizing. It worked. Thousands took the buyouts which were more than enough to buy a decent car. Later the buyout authority was extended to other agencies, subject to approval by the OPM and OMB. But that was then, this is now…

The Senate Homeland Security and Governmental Affairs Committee last year approved $40,000 buyouts for all agencies. But no action in the House. At least for now.

While many people expected that the new crop of $40k retirees would be a bumper one, finding anybody who got an offer—much less took it—has been akin to getting an actual glimpse of Big Foot. Or The Loch Ness Monster.

Late last year I found (actually he found me) a Defense civilian in the Philadelphia area who said he was offered, and took, a $40,000 buyout. I wish I had had the nerve to request a selfie with him, but I didn’t.

This year, FNR reporter Nicole Ogrysko tracked down another DoD civilian in the Baltimore area. His job was being moved to another facility in Maryland and he was offered and took a buyout.

That’s it. There are surely more (aren’t there?) but where are they? What kind of jobs do they have (or had)? How many buyouts are available? What’s the target for this year? Does the continuous use of CRs (continuing resolutions) have any impact on DoD downsizing and rightsizing? Almost certainly, but the picture is cloudy.

If you or a friend know of any $40,000 buyout activity we’d like to hear from you. No names if you prefer. No locations if the buyout takers want that kept confidential. But it would be nice to know if there are more than two. And better yet to know how many more.

Nearly Useless Factoid

By David Thornton

The largest prime number found so far is 277,232,917 – 1.

Source: New Scientist

Related Stories

    FILE - This Sept. 21, 2017 file photo shows The Environmental Protection Agency (EPA) Building in Washington. The EPA says an internal task force appointed to revamp how the nation's most polluted sites are cleaned up generated no record of its deliberations. (AP Photo/Pablo Martinez Monsivais, File)

    EPA may offer more buyouts, early retirement, depending on funding from Congress

    Read more
    Sen. James Lankford (R-Okla.) AP/Manuel Balce Ceneta

    Senate bill would boost early buyout offers for all federal employees

    Read more

Comments

Your Turn with Mike Causey

WEDNESDAYS at 10 A.M.

Learn about everything from pay, benefits and retirement, to buyouts, COLAs and pay freezes. Call the show live Wednesdays from 10-11 a.m. at 202-465-3080 with your questions. Dial 605-562-0264 to listen live from any phone. Follow Mike on Twitter and send him an email with your questions and comments. Subscribe on Apple Podcasts or Podcast One.

Sign up for breaking news alerts

THRIFT SAVINGS PLAN TICKER

Sep 17, 2021 Close Change YTD*
L Income 23.2077 -0.0415 4.43%
L 2025 12.0240 -0.0418 8.33%
L 2030 42.5522 -0.1952 10.54%
L 2035 12.7953 -0.0643 11.50%
L 2040 48.4773 -0.2641 12.46%
L 2045 13.2947 -0.0772 13.28%
L 2050 29.1552 -0.1795 14.12%
L 2055 14.3671 -0.1053 17.18%
L 2060 14.3671 -0.1053 17.18%
L 2065 14.3671 -0.1054 17.18%
G Fund 16.6644 0.0006 0.88%
F Fund 21.0666 -0.0298 -0.55%
C Fund 66.6676 -0.6128 21.56%
S Fund 85.0861 -0.0794 16.31%
I Fund 39.4469 -0.3006 11.70%
Closing price updated at approx 6pm ET each business day. More at tsp.gov
* YTD data is updated on the last day of the month.