VSIP and re-employment


Q. Can a federal retiree who received Voluntary Separation Incentive Pay work for a county public school transportation system within five years of receiving a VSIP? Working for a county government public school transportation system does not mean you need to payback the buyout, right? This only applies to re-employment in another federal government agency.

A. Correct. For the record, here are the rules governing the repayment of a VSIP:

“An employee who receives a VSIP and later accepts employment for compensation with the Government of the United States within five years of the date of the separation on which the VSIP is based, including work under a personal services contract or other direct contract, must repay the entire amount of the VSIP to the agency that paid it — before the individual’s first day of re-employment.

“If the proposed employment is with an agency other than the General Accounting Office, the United States Postal Service, or the Postal Rate Commission, the Director of the Office of Personnel Management may, at the request of the head of the agency, waive the repayment if:

* The proposed re-employment is with an executive branch agency;

* The individual involved possesses unique abilities and is the only qualified applicant available for the position; or in case of emergency involving a direct threat to life or property, the individual:

* Has skills directly related to resolving the emergency; and

* Will serve on a temporary basis only as long as the individual’s services are made necessary by the emergency.”


About Author

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

Leave A Reply