Considering a Buyout?

"...Many federal employees are being offered early retirement this year and many more wish they were. Often, the offers come with a Voluntary Separation Incentive Payment, otherwise known as a buyout.

The bad news is the buyout payment remains $25,000 -- the same as it was when I last wrote about this subject in 2006. Still, buyouts remain attractive. Here’s what you need to know if you are one of the lucky ones who receive such an offer and are eligible and ready to act on it -- or if you are just doing some wishful thinking..."

Read more at GovExec.com

Early Outs And Buyouts Explanation

"...employees at some agencies, including the U.S. Postal Service, are weighing whether to accept offers of early outs or buyouts. There are two flexibilities agencies can use to reduce the disruption of downsizing: the Voluntary Early Retirement Authority (VERA) and the Voluntary Separation Incentive Payment (VSIP)...

To qualify for early retirement, Civil Service Retirement System or Federal Employees Retirement System employees must be at least age 50 with 20 years of service or any age with 25 years of service. For both CSRS and FERS, the early-out annuity, like a regular annuity, will be based on a formula that includes your high-three, which is the average of your highest three consecutive years of salary, and your years and full months of creditable service...."

Read more at FederalTimes.com

Air Force offering 3rd round of buyouts

"...The Air Force is hoping the third time will be the charm in its efforts to trim its civilian workforce, announcing Friday a third round of buyouts and early retirements.

The service plans to begin offering Voluntary Early Retirements and Voluntary Separation Incentive Payments beginning May 1. Applications will be due by May 14 and those approved will need to leave by Aug. 31.

The Air Force is under a mandate to keep civilian staffing at 2010 levels as part of a fiscal-year 2012 civilian workforce restructuring..."

Read more at FederalNewsRadio.com

Effect of VERA/VSIP on Retirement Pay

"...Q. I am a Civil Service Retirement System/Federal Employees Retirement System offset employee with 31 years of service, and I have been offered Voluntary Early Retirement Authority and Voluntary Separation Incentive Payments (VERA/VSIP). I would like to know how a VERA/VSIP would affect my retirement..."

Read more at federaltimes.com

Buyout or keep working?

"...Buyouts. Career feds anywhere near retirement eligibility can rival Indiana Jones in their determination, skill and daring in hunting this treasure.

But, in reality, buyout offers are more like “Let’s Make A Deal” than “Raiders of the Lost Ark.”...

Obviously, if you were ready to retire anyway, retiring with an extra cash payment is a nice bonus. Retirement with an extra $17,000 — don’t forget that you’ll owe taxes on that $25,000 Voluntary Separation Incentive Payment — in your pocket is clearly worth more than the same retirement plan without the extra money.

However, it can be a much tougher decision, if accepting the buyout requires you to retire significantly earlier than you had otherwise planned"

Read more at federaltimes.com

What to know before taking a buyout

"...This week, alone, the Internal Revenue Service, the Agriculture Department, the National Geospatial-Intelligence Agency and the Transportation Security Administration, have all offered employees buyouts or early retirements.

But deciding to take the buyout can be a wrenching decision and largely depends on an employee's individual circumstances..."

Read more at federalnewsradio.com

Voluntary Separation Incentive Payments (VSIP)

"...The Voluntary Separation Incentive Payment Authority, also known as buyout authority, allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate. When authorized by the Office of Personnel Management (OPM)..." Read more at opm.gov