Federal Report
What's a VERA without a VSIP?
Federal Report
Is there a $25K to $40K buyout in your future?
Federal Report
98 days and counting, will federal hiring ever get easier?
Federal Newscast
TSA inches closer to putting officers on general schedule despite veto threat
Workforce
FDIC to offer buyouts, early retirements for 20% of its workforce
Workforce
BLM issues reassignment notices to 159 employees as part of western relocation
Federal Newscast
BLM to offer buyouts for workers who don't want to relocate
Workforce
USDA asking employees who had previously declined relocation to work longer in Washington
Federal Report
Draining the swamp: Is there a plumber in the house?
Federal Report
Social Security offering early outs, not buyouts
(AP Photo/Jon Elswick)
Federal Report
Waiting for a buyout? Good luck with that!
All News
$40K buyouts, and 3 other reasons civilian feds should pay attention to this year's NDAA
Federal Report
Why buyouts are bombing
Federal Report
The very, very small $40,000 buyout club
Pay
EPA may offer more buyouts, early retirement, depending on funding from Congress
Your Turn
2017: A year in review
Federal Report
$40,000 buyouts limited to defense civilians
Federal Report
Buyout season without buyouts
AP/Sue Ogrocki
![<em>Note: This story originally mentioned the Federal Deposit Insurance Corporation's early retirement and buyout offers, which the agency made to employees <a href="https://federalnewsnetwork.com/workforce/2020/03/fdic-to-offer-buyouts-for-20-of-its-workforce/">in early March</a>. Federal News Network has since learned those workforce changes were withdrawn on March 16 due to the pandemic. </em>
We've seen a handful of agencies offer early retirements in recent months. And for many of these organizations, there's been a common theme to the offers.
There's no money. It's just a quick ticket to retirement.
Knee-deep in IT modernization initiatives, the Agriculture Department <a href="https://federalnewsnetwork.com/workforce/2020/08/usda-cio-implements-hiring-freeze-offers-early-retirements-as-part-of-workforce-restructuring/">made early retirement offers</a> to IT specialists and others within its Office of the Chief Information Officer. USDA's OCIO needs fresh talent with emerging skills, and after consolidating its data centers and networks, it makes sense that the department doesn't need quite as many people to manage IT.
Under a Voluntary Early Retirement Authority (VERA), federal employees are eligible only if they have 20 years of service at age 50 or 25 years of service at any age. Eligible employees are allowed to voluntarily retire and earn an immediate annuity.
Perhaps hopeful (or fearful) their own organization was brewing up comparable plans to USDA, some readers asked if we knew of any other agencies who were making a similar offer.
The Transportation Security Administration announced in May it would offer early retirements to eligible employees, again with no buyout.
Early retirements were also part of the slew of workforce changes the Postal Service had initially planned. USPS made no mention of buyouts, only early retirements.
There may be others, but by my count, only two agencies come to mind as having offered a chunk of change with their early-retirement call this year.
The Defense Contract Management Agency <a href="https://federalnewsnetwork.com/dod-reporters-notebook-jared-serbu/2020/04/dcma-offers-early-outs-buyouts-to-hundreds-of-workers/#:~:text=DCMA%20cites%20budget%20pressure%20as,itself%20in%20that%20position%20now.">implemented</a> a Voluntary Early Retirement Authority (VERA) and Voluntary Separation Incentive Pay (VSIP) earlier this spring, citing shortfalls in both its operations and maintenance budget as one reason for the early-out and early retirement offer.
The Federal Deposit Insurance Corporation <a href="https://federalnewsnetwork.com/workforce/2020/03/fdic-to-offer-buyouts-for-20-of-its-workforce/">offered</a> VERA/VSIP options to a whopping 20% of its workforce back on March 5. It feels like ages since we reported the news, but the FDIC offered incentives worth six month's salary, or even a year's pay for some employees.
The agency later with withdrew those early retirement and buyout offers in mid-March during the height of the pandemic.
Some FDIC salaries <a href="https://www.fdic.gov/about/jobs/2019cgcmcxem.pdf" target="_blank" rel="noopener">top out at $273,400</a>, including locality pay. An FDIC corporate manager, for example, can make anywhere from $117,254-to-$195,445. That would have been quite the incentive payment, and it probably seems like a dream compared to the $25,000 max VSIP still in place from the early aughts.
That's right, the maximum Voluntary Incentive Payment hasn't budged in nearly 20 years, and there are no signs it will any time soon.
Congress <a href="https://federalnewsnetwork.com/workforce/2018/07/ndaa-dashes-chance-of-40k-buyouts-for-civilian-employees/">made a halfhearted attempt</a> to raise the maximum to $40,000 with the <a href="https://federalnewsnetwork.com/all-news/2018/06/40k-buyouts-and-3-other-reasons-civilian-feds-should-pay-attention-to-this-years-ndaa/">annual defense authorization</a> bill, but the provision went nowhere once Congress realized it actually had to appropriate more money to pay for a better buyout deal.
The Office of Personnel Management also suggested raising the maximum incentive payment in recent years, but again, the proposal went nowhere.
So it's been at least two years since Congress or the administration made an attempt at raising the statutory VSIP max, and I'm willing to bet $40,000 buyouts aren't coming any time soon.
So where does that leave you?
Some of you <a href="https://federalnewsradio.com/mike-causey-federal-report/2018/01/why-buyouts-are-bombing/">told us two years ago</a> a $25,000 buyout just wasn't appealing, especially after taxes.
There are, of course, implications for taking a VERA, especially if you're looking to hang on to your federal health insurance in retirement.
But what about now? Are you still eyeing an early retirement even if it comes with nothing — just early access to your annuity?
<h2>Nearly Useless Factoid</h2>
By <a href="mailto:dthornton@federalnewsnetwork.com">David Thornton</a>
Supai, Arizona, a small community within the Grand Canyon, is the only place in the U.S. that still gets its mail delivered by mule.
<em>Source: <a href="https://insider.si.edu/2016/08/grand-canyon-u-s-postal-service-still-delivers-mail-mule/">Smithsonian Insider</a></em>]()
Mike Causey
Buyouts and the law of unintended consequences
Your Turn
Buyouts: What, if anything is likely to happen?
Federal Report
Can’t get a buyout? Build your own
Your Turn
Is there a buyout in your future?
