VERA/VSIP funding


Q. I would like to know from what pot of money Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay are funded because I will never be on the receiving end.

A. Both come out of an agency’s operating budget. And both are used to minimize or avoid involuntary separations through the use of costly and disruptive reductions in force. The only cost of a VERA is processing the paperwork. The VSIP costs a maximum of $25,000 per person and is applied in a targeted way to encourage employees in specific positions to leave who might not have done so without a financial incentive. The Office of Management and Budget has confirmed that these two authorities are cost savers.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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